Exempt Resources

The scope of exempt resources varies depending on the applicant’s marital status.

Married Couples

Married couples are entitled to keep their primary residence, one vehicle, prepaid funeral plans, burial plots, and the Community Spouse Resource Allowance. Generally, everything else is subject to spend-down.

Single individuals

Single individuals are entitled to a prepaid funeral plan and burial plot. If they own a home, it can be tricky. Medicaid presently exempts a primary residence if the Medicaid applicant “intends to return home.” This is a bit of a farce but if a miracle happens and the person would return home, the exemption applies. The home is also exempt if a dependent relative resides in the home. Just because the home is exempt doesn’t mean the Medicaid recipient can afford to take care of the home. The Medicaid recipient only gets $50 of income to spend freely. The rest is subject to Patient Liability.

Are exempt resources free from Medicaid Estate Recovery?

No. If the resource remains titled in the Medicaid recipient’s name at death, Medicaid Estate Recovery allows the state to collect on the value. Medicaid Estate Recovery only applies after the Medicaid recipient (or the recipient and the spouse, if married) dies. So, while exempt resources can be good shortcuts to eligibility, they are not necessarily asset-protection strategies.