What are the eligibility requirements for Medicaid if I have to go into a nursing home in Michigan?

Our Experienced Michigan Elder Law Attorneys Explain Medicaid Eligibility for Nursing Home Coverage

 If you need to receive care in a nursing home or are trying to plan ahead in case you must go to one when you get older, you may be worried about how to pay for care without losing your assets. Our experienced Medicaid planning and elder law attorneys are available in Howell and Clinton Township to clarify the Medicaid eligibility requirements and help you develop a Medicaid planning strategy to help you qualify for coverage without losing your assets. Below, the experienced attorneys at Estate Planning & Elder Care Firm of Michigan share key aspects of the complex Medicaid eligibility rules. 

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Basic Medicaid Eligibility Requirements for Nursing Home Care in Michigan

A common myth some people mistakenly believe is that their Medicare or Medigap Insurance will pay for their long-term nursing home care, but this is not the case. Medicare only covers temporary care at a nursing home for individuals who meet certain requirements and need skilled nursing care immediately after being hospitalized for a short period of time. It does not cover long-term care.

This is why it’s so important to understand the Medicaid eligibility requirements for nursing home care. Long-term care in a nursing home care can be extremely costly, and you will most likely need to qualify for Michigan Medicaid to cover the cost. The basic eligibility rules for qualifying for Medicaid to pay for nursing home care include:

• Age or disability. You must be 65 years of age or older or be blind or disabled to qualify for Medicaid.
• Income. In Michigan, if you are single, you can currently only have $2829 in monthly income to qualify for Medicaid. Married couples can each have this amount of monthly income.
• Skilled care. You must need skilled nursing care or assistance with your daily living activities at a nursing home to be eligible.
• Assets. You must meet Medicaid’s asset limit, which is currently $2,000 in countable assets.

How Your Assets Impact Medicaid Eligibility for Nursing Home Care

The rules that determine the assets you can keep and still qualify for Michigan Medicaid for nursing home care are incredibly complex. There are two categories of assets for Medicaid eligibility purposes: countable and excluded assets. The $2,000 limit applies to countable assets.

Excluded Assets

Excluded assets are not counted toward the $2,000 asset limit. These include:

• Home. Your home may not be counted as an asset if you do not have too much equity. Our Medicaid planning and elder care attorneys can advise you about whether your home will be protected.
• Household and personal belongings. Your household and personal belongings are not included in the $2,000 asset limit.
• Motor vehicle. One motor vehicle would be an excluded asset.
• Prepaid funeral plans. A prepaid funeral plan would not be considered an asset for Medicaid eligibility requirements. You can also have a revocable contract of up to $1,500 for burial expenses.
• Life insurance. You can own a life insurance policy with a face value not exceeding $1,500. If you are married, your spouse can also have a policy not to exceed this value.

Countable Assets

Your other assets, such as bank accounts, investment accounts, and other property, would be counted toward the $2,000 asset limit.

Navigating the Complexity of Medicaid Eligibility

The basic rules listed above are a good starting point for understanding the Medicaid eligibility requirements, but the full picture is even more complex. For example, the rules regarding the assets you can keep if a spouse is not entering a nursing home can be more complicated. If you otherwise qualify but exceed the asset limits, you may have to spend down these unprotected assets well before needing skilled nursing care to qualify for Medicaid to pay for your nursing home care. With the proper planning and the right strategies, you may be able to qualify for Medicaid without losing your home and life savings.

Our Medicaid planning legal team can help. For example, we may be able to help you create a trust so that your assets are not included in the $2,000 limit. Another option may be to transfer certain property to a spouse or spend down assets for permissible purposes, such as purchasing a prepaid funeral plan. Whatever your situation, our lawyers can help you plan for Medicaid, understand your options, and make informed decisions about what is best for your family and you.