Exempt assets for Medicaid eligibility varies state to state. Florida implemented a new system for long-term care services through Medicaid three years ago. The program is called the Statewide Medicaid Managed Care Long-Term Care Program. In this program, Medicaid-eligible seniors who require long-term care can receive assistance in their home, in the community, or in assisted living.
With regard to Medicaid, Florida is what is known as “an income cap state.” That means that to be eligible for Medicaid long-term care benefits, there’s a hard and fast income limit. Here, the state requires the amount to be no higher than its set limit at time of application.
Compare this to a “non-income cap states,” also known as “Medically Needy” states where there is no income limit for Medicaid.
The List of Exempt Assets for Medicaid Eligibility
Here’s the list of assets that are exempt from the Medicaid program asset limits in Florida, and don’t need to be liquidated:
- A Florida homestead is exempt up to $560,000 of equity, and there’s no equity ceiling if the home is occupied by the recipient’s spouse (known as the “community spouse”) or a minor child;
- One vehicle is exempt, regardless of its year, type, or value. A second vehicle over seven years old is also exempt, except for a luxury or antique vehicle;
- The applicant’s personal property is exempt, except for certain valuable items of jewelry, art, or collectibles;
- An irrevocable burial contract is exempt, regardless of amount, plus an additional $2,500 held in reserve for funeral and burial expenses;
- Life insurance with a face amount of less than $2,500 owned by recipient and spouse are exempt from Medicaid;
- IRAs, 401k plans, and other tax-deferred retirement investments can be made exempt with the correct legal advice.
- Income producing real estate is exempt if it isgenerating net income;
- $2,000 or less in cash or non-exempt assets is exempt for singles, and if the applicant is married, and both spouses require nursing level care, the limit is upped to $3,000.
Non-saleable property, household furnishings, furniture, clothing, jewelry, and other personal effects aren’t counted in the calculations.
Questions about Exempt Assets for Medicaid Eligibility?
The application for Medicaid takes some planning and consideration, especially if you have assets that may take you above the income limit. If you have questions about Florida Medicaid Attorney Frazier is a skilled Medicaid planning (with over 2,000 cases completed that helped preserve their family’s savings), estate planning and elder law practitioner. Please contact John for a free telephone consultation at 727-586-3306 extension 104. If you prefer click here now to send in a contact form, and we will call you.