As we age, the potential need for long-term care can start to enter the picture. Many seniors assume that Medicare will cover these costs, only to discover, often too late, that it’s not the answer.
Medicare, the federal health insurance program for those 65 and older, is designed to cover acute medical needs, such as hospital stays, doctor visits, and prescription drugs.
However, it does not pay for the kind of sustained custodial care that many seniors require as they grow older, such as assistance with daily activities like bathing, dressing, or eating.
How Expensive Is It?
The cost of long-term care in the United States is staggering. According to CareScout, the median charge for a private room in a Westport, CT area nursing home is $234,217 in 2026.
For many people, this could mean depleting a lifetime of savings in just a few years. And if you are married, you and your spouse may face two different sets of long-term care bills, multiplying the pain.
The Medicaid Solution
This is where Medicaid steps in. Medicaid is a joint federal and state program that does cover long-term care costs, including nursing home care and, in some cases, in-home care.
For seniors who were never financially needy but now face the prospect of depleting their savings to pay for care, Medicaid becomes a critical resource.
The bad news is that qualifying for Medicaid is not as simple as demonstrating a need for care. One of the most significant hurdles is the asset limit, a financial threshold that determines eligibility.
For seniors in Connecticut, understanding this limit is essential for planning for the future.
Connecticut Medicaid Asset Limit
The Connecticut Medicaid asset limit for long-term care is $1,600 for an individual and $2,400 for a married couple (as of 2026).
These limits are set by the state and are subject to change, so it’s important to verify the current figures with a qualified elder law attorney or the Connecticut Department of Social Services.
At first glance, these limits seem straightforward. However, the reality is far more nuanced.
Not all assets are counted toward this limit. The state distinguishes between countable and non-countable assets. Countable assets include cash, bank accounts, stocks, bonds, and real estate that is not the primary residence (unless it is being used to generate income).
Non-countable assets, on the other hand, include the primary residence (up to an equity limit that stands at $1.13 million in Connecticut in 2026), one vehicle, personal belongings, and certain types of retirement accounts.
Five-Year Look-Back Period
Here’s where things get tricky. Medicaid does not just look at your assets on the day you apply. It also examines your financial history for the five years prior to your application through a process known as the look-back period.
This is designed to prevent seniors from simply giving away their assets to qualify for Medicaid after they find out they need custodial care.
If Medicaid discovers that you transferred assets for less than fair market value during the look-back period, it will impose a penalty period during which you are ineligible for benefits.
The length of this penalty period is calculated based on the value of the transferred assets and the average cost of nursing home care in Connecticut.
For instance, if you gave away $100,000 worth of assets, and the average monthly cost of a nursing home in Connecticut is $20,000, you would face a 5-month penalty period before becoming eligible for Medicaid.
This rule can create a significant dilemma for seniors who want to protect their assets for their heirs. Transferring assets to family members or setting up and funding a trust can trigger the look-back penalty, leaving the senior without Medicaid coverage when they need it most.
For this reason, advance planning is the key to future eligibility.
Medicaid Asset Protection Trust
Your nursing home asset protection strategy can be centered around the utilization of a Medicaid asset protection trust. To implement this strategy, you convey countable assets, including your home, into the trust before there are any signs that you will need long-term care any time soon.
This would be an irrevocable trust, so you would not be able to act as trustee or access the principal. Since you surrender incidents of ownership in a legal context, the assets are not considered to be your personal property.
For this reason, if you apply for Medicaid at least five years after you fund the trust, the assets in the trust would not count against you.
Medicaid Estate Recovery
The Medicaid program is required to seek reimbursement from the estates of deceased beneficiaries. Because you cannot qualify with significant assets in your name, there is usually nothing for them to take.
One exception is your home, since it is a non-countable asset. When you convey your place of residence into the trust, it is no longer your own personal property. As a result, it would not be available to Medicaid during the recovery process.
Summing It Up
For seniors and their families, Medicaid can be a lifeline, providing access to long-term care without causing financial hardship. However, qualifying for Medicaid requires careful planning, a deep understanding of the rules, and the guidance of an attorney.
If you or a loved one is facing the prospect of long-term care, do not wait to start planning. The sooner you begin, the more options you will have to protect your assets and ensure access to the care you may need in the future.
Let’s Get Started!
Our firm can help you take the right steps to prepare for potentially devastating long-term care costs. We have a Glastonbury, CT elder law office, and another one in Westport, and you can send us a message or call us at 860-548-1000 to request a consultation at either location.
And if you would like to learn more before taking that step, join us at one of our monthly seminars. They are offered on a complimentary basis, and you can visit our seminar schedule page to get all the details.
- Elder Law Answers: What’s the Connecticut Medicaid Asset Limit? - September 29, 2026
- Digital Estate Planning in the AI Age: Key Considerations - September 3, 2026
- A Medicaid Asset Protection Trust Can Bridge The Medicare Gap - August 25, 2026
( By appointment only )