Medicaid's Initial Assessment

When you go to the Medicaid office, they will give you an application form and will complete an initial asset assessment with you to determine your (or your loved one's) eligibility for assistance. Eligibility is determined based on the assets and income of the person who needs nursing home care.

Applicants will be ruled ineligible for Medicaid assistance if they have assets greater than $2,000 at the time they enter the nursing home. In that event, applicants will be required to pay for their own care out of their assets until such time as they spend their "countable assets" down to $2,000 or less.

Remember, the Medicaid system was never designed to be the nursing home insurance plan for middle-class families. It is meant to provide nursing home care for those persons who truly are unable to pay for their own care.

There are some assets valued at more than $2,000 that Medicaid applicants are allowed to keep without jeopardizing their Medicaid eligibility. For instance, applicants may usually keep both one home and one car. These holdings are not counted among an applicants assets. This is one of the rules in place to protect families of nursing home residents from having to become impoverished to pay for their loved one's care. However, all assets of the Medicaid beneficiary can be subject to liens by the state after death.

*Medicaid rules and guidelines differ by state and can change yearly, you should contact your local Medicaid office for the most current information.

page 32