What are Medicaid Asset Exemptions?

Long-term care can be costly, and many individuals worry about how they will afford it without depleting their life savings. Fortunately, there are asset exemptions in place to help protect certain possessions and funds from being used to pay for long-term care expenses.Asset exemptions are specific items or funds that are protected from being counted as part of your financial resources when determining eligibility for certain government benefits, such as Medicaid.

Why Asset Exemptions Matter

When applying for long-term care assistance, such as Medicaid, your financial situation is evaluated to determine if you qualify for aid. Asset exemptions help ensure that individuals do not have to exhaust all of their resources before receiving help for long-term care needs.

Common Asset Exemptions

Here are some common types of assets that may be exempted:

Primary Residence

• In many cases, the home where you live is exempt from being counted as an asset when applying for long-term care assistance.
• There are usually limits on the value of the home, and it must be your primary residence.

Personal Belongings

• Items such as clothing, furniture, and personal effects are typically exempt from consideration.

One Vehicle

• Usually, one vehicle used for transportation purposes is exempt from being counted as an asset.

Certain Retirement Accounts

• Some retirement accounts, such as IRAs and pensions, may be exempt up to a certain value.