Why You Should Know About Medicaid Asset Limits

For most Georgia residents who need long-term care in older age, Medicaid will cover the costs. Although Medicaid is known primarily as a public benefit for people with limited income and assets, it is a crucial source of funding for seniors who need care in nursing homes due to the very high costs associated with these facilities. Medicare does not cover these costs, to be clear. Regardless of whether you are currently just earning enough money or earning what many would consider a high salary, you may indeed want to have Medicaid cover the costs of nursing home care if you need it. And contrary to what many people assume, ideally you will want to start planning for the possibility of long-term care when you are in your 40s or 50s, not when you have retired and need the care imminently.

For these reasons, it is extremely important to know about Medicaid asset limits, and the options that ultimately may be available to you in order to become eligible for Medicaid long-term care coverage.

Medicaid Income and Asset Limits 

If you want to be able to have Medicaid cover the costs of long-term care, you will need to “spend down” your assets until you reach the limits set by Georgia Medicaid. Until you have spent down to the stated limits, you will be expected to cover the costs of long-term care.

For Medicaid to cover nursing home care, the income and asset limits will depend on whether you are single or married, and if you are married, whether one or both spouses will be applying for Medicaid coverage for long-term care. In 2025, for a single person seeking nursing home care, the income limit is $2,901 per month with an asset limit of $2,000 (and the same for one spouse when only the one spouse requires Medicaid coverage, although in that case there is still an asset limit of $157,920 for the non-applicant spouse). For married spouses with both seeking coverage there is an income limit of $5,802 for the couple and a combined asset limit of $3,000.

Certain assets are considered non-countable for Medicaid purposes, including your home if you intended to return to it following a nursing home stay.

Spending Down While Protecting Assets

One of the most important components of elder law and estate planning when it comes to Medicaid coverage for long-term care is determining ways of “spending down” savings while still protecting those assets. In other words, this process, often known as Medicaid planning, involves finding ways to technically “spend down” assets without actually paying for a nursing home with that money, and instead “spending down” in a way that ultimately protects those assets.

You should speak with a lawyer about options that may include a Medicaid Asset Protection Trust (MAPT), a Qualified Income Trust (QIT), and more.

Contact a Gwinnett County Estate Planning Attorneys Today for Assistance 

Do you have questions about planning ahead for long-term care in connection with asset protection? Or do you have an elderly parent who will likely need long-term care in the near future, and you want to help them with available asset protection and Medicaid planning strategies? One of the experienced Gwinnett County estate planning lawyers at Bowman Law Firm can speak with you today to learn more about your needs. Once we talk with you about your circumstances, we can discuss a range of asset protection and long-term care planning strategies. Contact our firm today for assistance.

Source:

medicaid.georgia.gov/