Each year, the Centers for Medicare & Medicaid Services (“CMS”) releases the new federal guidelines for individuals whose spouses are applying for or receiving Medicaid for long-term care. CMS recently released the new 2024 numbers for income and asset eligibility for Medical Assistance for Long-Term Care (“Medicaid”). The new numbers include the revised Spousal Impoverishment Standards. The new numbers will take effect January 1, 2024. When determining financial eligibility for Medicaid, the asset limit is based on the applicant’s income. Where the applicant’s gross monthly income for 2024 is less than $2,829, the asset limit is $8,000. Where the applicant’s gross monthly income for 2024 is over $2,829, the asset limit is $2,400.
When determining whether an applicant meets the asset limit, DHS will only look at assets they consider countable. Countable assets generally include all belongings except: (1) personal possessions, such as clothing, furniture, and jewelry; (2) one motor vehicle; (3) an applicant’s principal residence (if it is in Pennsylvania and the equity does not exceed $713,000); and (4) assets that are considered inaccessible for one reason or another, such as a spouse’s IRA.
In addition to the asset limit that the applicant must meet, DHS has set guidelines for the assets that a spouse of a Medicaid applicant (referred to as the “community spouse”) can keep. Both federal and state law recognize that the community spouse should not become impoverished when their spouse qualifies for Medicaid benefits to pay for long-term care. The community spouse is allowed to keep half of the countable assets up to a maximum of $154,140 for 2024, and a minimum of $30,828 for 2024. This is referred to as the Community Spouse Resource Allowance (“CSRA”). In addition to the CSRA, the spouse is also entitled to a Monthly Maintenance Needs Allowance (MMNA). The MMNA is the amount of income that the community spouse needs per month to continue living in the community. In 2024, the maximum MMNA is $3,853.50. The minimum MMNA has been in effect since July 1, 2023, and is $2,465 per month. This amount will continue to be in effect unless raised on July 1, 2024.
Understanding the Medicaid rules and navigating the application process can be overwhelming. You should consult with an elder law attorney before applying for Medicaid to make sure that you understand your rights. For more information on the 2024 Medicaid Impoverishment Standards visit CMS.gov.
The legal advice in this column is general in nature, consult your attorney for advice to fit your particular situation.
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Rebecca A. Hobbs, Esquire is licensed to practice in the Commonwealth of Pennsylvania and is certified as an Elder Law Attorney by the National Elder Law Foundation as authorized by the Pennsylvania Supreme Court. She is a principal of the law firm of O’Donnell, Weiss & Mattei, P.C., 41 High Street, Pottstown, and 347 Bridge Street, Phoenixville,610-323-2800, www.owmlaw.com. You can reach Ms. Hobbs at rhobbs@owmlaw.com
