---
title: "What Is Medicaid asset limit? Home Care Glossary | HomeCare.com"
description: "The Medicaid asset limit is the cap on countable assets a person may own and still qualify for Medicaid long-term care. Each state sets the dollar amount,..."
url: https://homecare.preview.multisites.ai/glossary/medicaid-asset-limit/
publisher: HomeCare.com
phone: 800-974-3458
start: https://care.homecare.com/?source=homecare.com
---

Paying for care

# Medicaid asset limit

The Medicaid asset limit is the cap on countable assets a person may own and still qualify for Medicaid long-term care. Each state sets the dollar amount, and it is low. Countable assets include cash, bank accounts, and investments. A person's main home is generally exempt, and some other items are exempt.

## Why it matters for your family

A person with too many assets must use them, often on care, before Medicaid pays. The Administration for Community Living notes that the principal home is not counted regardless of its value, though states may set a limit on home equity. Spouses get special protections. A common mistake is to assume that every asset counts, or that none do. Another mistake is to give assets away to get under the limit, which can trigger a penalty under the look-back rule. Ask the state Medicaid agency for the current limit. An elder law attorney can explain which assets are exempt.

Source: [acl.gov](https://acl.gov/ltc/medicare-medicaid-and-more/medicaid/medicaid-eligibility)

[Read more: Paying for care](https://homecare.preview.multisites.ai/paying-for-care/)

## Related terms

-   [**Medicaid eligibility**Medicaid eligibility for long-term care depends on need, income, and assets.](https://homecare.preview.multisites.ai/glossary/medicaid-eligibility/)
-   [**Look-back period**The look-back period is the time window Medicaid reviews when someone applies for long-term care coverage.](https://homecare.preview.multisites.ai/glossary/look-back-period/)
-   [**Spend down**Spend down is a way to qualify for Medicaid when your income is above the state limit.](https://homecare.preview.multisites.ai/glossary/spend-down/)
-   [**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.](https://homecare.preview.multisites.ai/glossary/community-spouse-resource-allowance/)
-   [**Medicaid planning**Medicaid planning is the legal arrangement of income and assets so a person can meet Medicaid rules for long-term care.](https://homecare.preview.multisites.ai/glossary/medicaid-planning/)
-   [**Elder law attorney**An elder law attorney is a lawyer who focuses on legal issues of older adults.](https://homecare.preview.multisites.ai/glossary/elder-law-attorney/)

[All glossary terms](https://homecare.preview.multisites.ai/glossary/)

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