As elder law attorneys, we assist people that have concerns about long-term care. Since Medicare will not pay for the custodial care that nursing homes, assisted living facilities, and in-home caregivers provide, steps must be taken to qualify for Medicaid.
A lot of people wonder why Medicare would not cover this type of care if Medicaid will. It is hard to brainstorm any type of logical answer, but that’s the reality.
General Connecticut Medicaid Guidelines
Since Medicaid is a need-based program, there is a $1600 limit on countable assets in Connecticut. The “countable” part is operative, because there are a number of things that do not count.
If you are in possession of a wedding ring, an engagement ring, and/or some heirloom jewelry, these items would not be counted. One motor vehicle is permitted, and Medicaid is not concerned about your personal belongings and the items that you have around the house.
They don’t mind if you have a prepaid burial plot or $1500 put aside for your final expenses. The same amount of whole life insurance is allowed, and unlimited term life insurance is okay.
Provisions for the Healthy Spouse
In many cases, a married person will be able to live independently, but their spouse will require nursing home care. Under these circumstances, the healthy spouse is referred to as the “community spouse” in Medicaid lingo.
There is a Community Spouse Resource Allowance that gives the healthy spouse the ability to keep half of the shared assets that are countable, but there is a limit. In Connecticut in 2020, that limit is $128,640.
We also have a minimum allowance of $25,728. To explain this through the use of a simple example, let’s say that a couple has $30,000 in shared countable assets. Half of that is $15,000, but because there is a minimum, the healthy spouse would be able to keep $25,728.
The vast majority of income that is brought in by a Medicaid recipient must be contributed toward the cost of the care that is being received. This requirement is waived if a healthy spouse is relying on the income.
There is a Monthly Maintenance Needs Allowance, and it maxes out at $3216 this year, and the minimum is $2113.75.
When a Medicaid applicant that is a homeowner is applying for coverage, the home does not count, but there is an equity limit. In our state, that limit is $893,000 in 2020. There is no limit at all if a healthy spouse is going to be remaining in the home.
Attend a Free Seminar
Our attorneys are holding a series of seminars over the coming weeks, and we get a great deal of positive feedback from attendees. This is an ideal opportunity to interact with an attorney in real time, and best of all, there is no charge to attend these seminars.
We do ask that you register in advance so that we can reserve your spot. You can see the dates and obtain registration information if you visit our seminar page.
Need Help Now?
If you are ready to devise a plan for aging that culminates in the passing of your legacy, we are here to help. We are keeping our office pristine and we embrace all safe practices, but if you would rather connect remotely, these options are available as well.
You can set the wheels in motion right now if you give us a call at 860-548-1000. There is also a contact form on this website you can use if you would prefer to send us a message. If you reach out electronically, you can expect to receive a prompt response.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
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