Paying for care
Community spouse resource allowance
The community spouse resource allowance is the share of a married couple's resources that the spouse living at home may keep when the other spouse needs Medicaid long-term care. Federal spousal impoverishment rules set a minimum and a maximum. CMS updates the amounts each year.
Why it matters for your family
Congress created these protections in 1988 so the spouse at home is not left with almost nothing. The couple's resources are generally pooled, and the community spouse keeps an amount within the federal range, set by the state. The rules also protect some income for the spouse at home. A common mistake is to think the couple must spend everything first. They do not. Check the current figures on the CMS spousal impoverishment page, because they change each year. An elder law attorney can explain how your state applies the rules.
Source: medicaid.gov
Related terms
- Medicaid asset limitThe Medicaid asset limit is the cap on countable assets a person may own and still qualify for Medicaid long-term care.
- Medicaid eligibilityMedicaid eligibility for long-term care depends on need, income, and assets.
- Medicaid planningMedicaid planning is the legal arrangement of income and assets so a person can meet Medicaid rules for long-term care.
- Spend downSpend down is a way to qualify for Medicaid when your income is above the state limit.
- Look-back periodThe look-back period is the time window Medicaid reviews when someone applies for long-term care coverage.
- Elder law attorneyAn elder law attorney is a lawyer who focuses on legal issues of older adults.
