What happens to Medicaid eligibility for individuals with assets?

• A. Assets have no impact.
• B. Individuals may need to reduce assets to qualify, with protections for spouses.
• C. Only income matters.
• D. Assets automatically qualify you.

Answer: (B)

Medicaid eligibility hinges on need, and for many applicants, especially those seeking long-term care, the amount of assets matters. When countable assets exceed the limit, a person typically must reduce them to qualify, a process known as spending down. This can involve using resources to pay for medical costs, home care, or other approved expenditures that bring the asset level down to the eligible range.

At the same time, there are protections to keep a sufficient share of resources for a spouse who remains in the community. The community spouse resource allowance and other exemptions prevent the at-home spouse from being left impoverished while the partner receives Medicaid. It’s also important to note that states often apply a look-back period to ensure transfers weren’t made to qualify inappropriately, which can create penalties if assets were moved recently.

So, assets do influence eligibility, and individuals may need to reduce assets to qualify, all while keeping protections in place for a spouse.