The cost of long-term care can be catastrophic. Many families deplete their life savings and assets on the cost of this care. Fortunately, there are federal and state laws that protect the healthier spouse from being impoverished. These laws and rules are often referred to as the impoverishment provisions of the Medicaid laws.
According to applicable federal law, the healthier spouse is entitled to a portion of the assets. The healthier spouse is entitled to the marital residence, personal effects and household goods, and one automobile. In addition, the healthier spouse is entitled to a portion of the remaining assets but subject to a minimum amount and a maximum amount.
The healthier spouse is entitled to one half of the remaining assets but no more than $137,400.00. In 2021 the maximum amount was $130,380.00.
The minimum amount that the healthier spouse can keep for 2022 is $27,480.00. The minimum amount in 2021 was $26,076.00.