Medicaid, a joint federal and state program, provides health coverage to millions of low-income individuals and families in the United States. To qualify for Medicaid, applicants must meet certain financial criteria, including limits on income and assets. Assets are typically divided into countable and non-countable categories. Countable assets are those that are considered when determining Medicaid eligibility, while non-countable assets are exempt from consideration.
Non-countable assets encompass various types of property and resources that are exempt from Medicaid eligibility calculations. These assets are typically considered essential for daily living or have restrictions on their use.
Here are some common examples:
The primary residence, where the Medicaid applicant or their spouse resides, is usually exempt from asset calculations. However, there are certain limitations and exceptions depending on the equity value of the home and the Medicaid recipient's living arrangements.
| Criteria | Exemption Status |
|---|---|
| Equity Value | Up to a certain limit |
| Home Ownership | Solely or jointly owned |
| Intentions | Intended for residency |
Personal belongings such as clothing, furniture, and household appliances are generally not counted as assets for Medicaid eligibility purposes. These items are considered necessary for daily living and are therefore exempt from asset calculations.
One vehicle is typically exempt from Medicaid asset calculations if it is used for transportation purposes by the applicant or their household members. There are usually restrictions on the value of the exempt vehicle.
Life insurance policies with a face value below a certain threshold are often considered non-countable assets. Additionally, if the policyholder designates a beneficiary other than themselves or their spouse, the cash value of the policy may also be exempt.
Funds set aside for prepaid burial expenses are generally exempt from Medicaid asset calculations. These funds must be specifically designated for funeral or burial expenses and may have limitations on their value.