Medicaid is a government program that will pay for long-term care if you can obtain eligibility. In California, this program is referred to as “Medi-Cal”. This program was originally designed to help people with virtually no financial resources obtain medical care. However, it is utilized by seniors who need living assistance who have never considered themselves to be poor.
The upper asset limit is $2,000, but there is some property that doesn’t count toward this figure. This would include your home, your vehicle, and many of your personal possessions.
There is a limit on the amount of equity you can have in your home. This limit has been increased in 2013 to a minimum of $536,000, with each state having the option of increasing this number to $802,000.
In cases when a married person must enter a nursing home, the partner who remains at home is termed the “community spouse.” The community spouse may keep his or her share of the couple’s assets up to a particular limit.
In 2013, this asset limit has been set at a maximum of $115,920. It should be noted that each state has the option of lowering this asset limit, but there is a minimum standard of $23,184.
The community spouse is entitled to what is called a “monthly maintenance needs allowance” (MMNA). As a result, the community spouse can retain some of his or her institutionalized spouse’s income to meet this basic standard. The maximum monthly maintenance needs allowance (MMMNA) is $2,898 in 2013.
If you are interested in getting more information about this government program that can assist you if you need long-term care, download our free report: Medicaid Planning Report