Medicaid Monthly Maintenance Needs Allowance, Equity Limits Rise
The Medicaid program has announced some changes to the financial parameters for
2013, and we would like to take a look at a couple of them here.
Technically you cannot have more than $2,000 in assets to qualify for Medicaid, which
is the program that pays for most of the nursing home care received by seniors.
However, not everything that you own counts toward this figure.
If you are a homeowner your home's value is not counted up to a certain equity limit.
Last year this equity limit was $525,000 at the base, but each state had the option of
raising it to as much as $786,000. This year the equity limit is $536,000 with each state
having the ability to increase this to $802,000.
There is also an increase in the monthly maintenance needs allowance. Let's say that a
husband was to enter a nursing home and his wife was to remain in the home. If her
income alone was not sufficient, she would be allowed to retain some of her husband's
Medicaid sets certain parameters with regard to the monthly maintenance needs
allowance. In 2013, the maximum monthly maintenance needs allowance that a state can
allow has been raised to $2,898. The minimum in the lower 48 states is $1,891.25.
You have a 40% chance that you will someday reside in a nursing home if you are
fortunate enough to reach the age of 65. In California, nursing home costs exceed
$100,000 annually on average, and 10% of people who live in nursing homes stay at the
nursing home for at least five years.
When you consider the above, Medicaid may not seem relevant to you now, but it may
become quite relevant to you later on.
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