|The Asset Test
(Assets or Resource information for Medicaid eligibility in Texas can be found in Chapter F of the Texas Health and Human Services Medicaid Eligibility Handbook.)
The limits for assets and qualifying for benefits are as follows:
Single Individual: $2,000.00
Married Couple: $3,000.00 (this is when both spouses are residents of the nursing home)
Community Spouse at home: ½ of the total assets but not more than $115,920.00 of the total countable assets. (This occurs when one spouse is in the nursing home (Institutionalized Spouse) and the other is living at home (Community Spouse).
Examples of countable assets include: CD's, savings accounts, checking accounts, bonds, stocks and money market accounts. Below is a list of assets that are "excluded assets"; that is, they are not counted when determining Medicaid eligibility.
Major Asset Exclusions
- Homestead - If the spouse or certain dependent relatives continue to reside in the home, it is excluded. Also, if the applicant intends to return to the home, the home is excluded. However, a person who is eligible for Medicaid benefits in Texas may not exclude a home in another state.
- Estate Recovery: Without proper planning, a nursing home resident may not be able to leave their home to their family, but instead their heirs may have to sell the home to repay the state for the amount of Medicaid benefits received. Click on "Estate Recovery Info" at left for more information.
- Vehicle - One vehicle is excluded if its current retail value is $4,500.00 or less. However, the value of a vehicle used for medical purposes at least four times per year is unlimited. In some cases, another vehicle may be exempt
- Life Insurance - If the total face value of all of the policies is equal to or less than $1,500.00, then the cash value is excluded as an asset. If the total value exceeds $1,500.00, the cash value is considered an asset.
- Burial Funds and Prepaid Funeral Contracts - Up to $10,000 of an irrevocable burial contract is excluded as an asset.
- Properly Structured Immediate Annuities - Assets placed into a properly structured Medicaid Friendly Annuity are excluded assets. There are several requirements when applying for Medicaid benefits that must be met in order for the assets placed into the annuity to be excluded. Annuities are underwritten by licensed insurance companies.
Click here for information about gifts/transfers.
MIR, Inc. works under the direction of attorneys. However, this website is not a substitute for the advice of an attorney.