Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 1

IS THERE A MEDICAID ASSET LIMIT IN CONNECTICUT?

“Before we look at the Medicaid program and the matter of

assets, we should provide some background information

with regard to why Medicaid may be relevant to you as a

senior citizen.”

BARRY D.HOROWITZ Connecticut Estate Planning Attorney

Is There a Medicaid Asset Limit in Connecticut? www.preserveyourestate.net 2

The Most people will qualify for Medicare coverage eventually. At the

present time, the age of eligibility for Medicare is 65.

You qualify for Medicare through the accumulation of retirement credits.

You get these credits while you are working and paying FICA or self-

employment taxes. The maximum annual accrual is four credits, and the

requirements are modest. In 2015, you get one credit for every $1220 that

you earn.

Once you have at least 40 retirement credits, you will qualify for Medicare

when you reach the eligibility age.

Medicare is certainly going to help with your medical expenses when you

attain senior citizen status if you are eligible. However, it does not cover

everything in full, and there is one very big hole in the coverage.

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The Medicare program does not pay for long-term care. Since the majority

of elders will need living assistance at some point in time, this is something

that is relevant to all of us.

This gap is considerable, because long-term care is extremely expensive.

We practice law in the greater Hartford, Connecticut area. In our area of

the country, the median annual cost for a private room in a nursing home is

$160,600.

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MEDICAID ELIGIBILITY

Now that we have laid the groundwork, we can look at Medicaid and the

Medicaid eligibility parameters.

Medicaid is a jointly administered federal/state government health

insurance program that does pay for long-term care. It actually pays for

most of the nursing home care that is being received by seniors in the

United States

The Medicaid program is only

available to people who can

demonstrate a significant level of

financial need. As such, there is indeed

an asset limit. For a single individual,

this limit is $2000.

The $2000 limit is certainly attention-

getting, but fortunately, some things

that you own are not countable. The

biggest asset that is not counted is

your home, but in Connecticut, there

is an equity limit that stands at $828,000 during the current calendar year.

We should point out the fact that there is no equity limit at all if a healthy

spouse is remaining in the home while his or her spouse enters a long-term

care facility.

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In addition to your home, one car that is used as a primary source of

transportation is not looked upon as a countable asset. Your engagement

ring and your wedding ring are not counted, and the heirloom jewelry that

you have in your possession would not be counted either.

You are allowed to

retain ownership of a

whole life insurance

policy valued at up to

$1500, and you can

have unlimited term

life insurance.

We previously

touched upon the fact

that your spouse could retain ownership of the family home with no equity

limit if you were to apply for Medicaid to pay for long-term care. This is not

the only benefit that is afforded to a healthy spouse.

A healthy spouse is also entitled to a Community Spouse Resource

Allowance. This would equate to half of the shared assets that are

considered to be countable, but there is a limit of $119,220 in 2015.

There is also a minimum Community Spouse Resource Allowance of

$23,844. Even if this figure represents more than half of the shared

countable assets, this is the minimum that a healthy spouse could retain.

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SUMMARY

The majority of senior citizens will qualify for Medicare as a source of

health insurance. However, the Medicare program does not pay for long-

term care, and most elders will eventually need help with their activities of

daily living.

Medicaid does pay for long-term care, and it is the solution for most

seniors. However, there is a limit on countable assets that stands at $2000

for an individual.

People often give countable assets to their loved ones so that they can

qualify for Medicaid. This takes careful planning, because program rules

are complex. You are penalized if you give away assets within five years of

applying. To get all the details, schedule a consultation with a licensed elder

law attorney.

REFERENCES

Genworth Financial https://www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html LongTermCare.gov http://longtermcare.gov/

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About the Author

Barry D. Horowitz

Barry D. Horowitz is a founding partner in the law firm of

Nirenstein, Horowitz & Associates, P.C. He received his

diploma from the Loomis Chaffee School and his Bachelor

of Arts from Bennington College, where he dual majored

in philosophy and music.

Mr. Horowitz was awarded his Juris Doctor degree with

honors from the University of Connecticut School of Law.

While attending law school, Mr. Horowitz received the

American Jurisprudence Award in Legal Ethics and the

Nathan Burkan Award.

After graduation from law school, Mr. Horowitz continued his legal education at New

York University School of Law where he received a Post Doctorate Law Degree in

Taxation. He has also recently received a national achievement award.

Mr. Horowitz is admitted to practice before all the state courts in the State of

Connecticut and the United States District Court. He is a member of the Hartford

County Bar Association, a charter member of the American Academy of Estate Planning

Attorneys, and has recently received the American Academy Award. Mr. Horowitz is

also an active member of the Connecticut Bar Association where he is a member of the

Elder Law Section, the Estate Planning and Probate Section, and the Professional Ethics

Committee. Mr. Horowitz practices exclusively in the area of Estate Planning where he

has earned a reputation as a dynamic and entertaining speaker. He also has recently

published a book entitled “Guiding Those Left Behind in Connecticut.”

Nirenstein, Horowitz & Associates, PC Living Trust and Estate Planning Attorneys Serving the State of Connecticut with Offices in Greater Hartford, Fairfield County, CT www.PreserveYourEstate.net HARTFORD WESTPORT Gothic Park 191 Post Road West 43 Woodland St., Suite 520 Westport, CT 06880 Hartford, CT 06105 Phone: 203-221-2617 Phone: (860) 548-1000