As we step into 2025, individuals and families navigating long-term care and Medicaid planning need to be aware of the latest financial thresholds and rules. Whether you are planning for yourself or a loved one, understanding these numbers can make a significant difference in eligibility and asset protection strategies. Let’s look at numbers for the State of Michigan for 2025.
1. Medicaid Asset Limits for Applicants
To qualify for Medicaid, an applicant must have countable assets below a certain threshold. In 2025, that limit is $9,660. Keep in mind, some assets are not countable by definition. For example, a primary residence and one automobile may be exempt under specific conditions.
2. Community Spouse Resource Allowance (CSRA)
If one spouse requires Medicaid for long-term care and the other remains at home, the community spouse (the one still at home) is entitled to keep a portion of the couple’s assets. In 2025, the CSRA is 50% of the couple’s assets, up to a maximum of $157,920. If the community spouse’s 50% is under $31,584, up to $31,584 can be kept.
3. Medicaid Income Limits
When only one spouse of a married couple is applying for Medicaid benefits, only the income of the applicant is counted. The income of the non-applicant spouse is disregarded. The non-applicant spouse may be entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA). The MMMNA is considered to be the minimum amount of monthly income the non-applicant souse requires to avoid impoverishment. The MMMNA (though 6/30/2025) is $2,555. If the non-applicant spouse’s income is less than this amount, income can be transferred to them from the applicant spouse. A non-applicant spouse can further increase their Spousal Income Allowance if their housing and utility costs exceed a “shelter standard” of $766.50 (through 6/30/2025). However, a Spousal Income Allowance cannot push the non-applicant spouse’s total income over $3,948, the Maximum Monthly Maintenance Needs Allowance.
4. Look-Back Period and Penalties
Medicaid’s five-year look-back period remains crucial. Any uncompensated transfers made within five years of applying for Medicaid can result in a penalty period, during which the applicant is ineligible for benefits. Planning ahead and working with an experienced elder law attorney can help navigate this complex rule.
Take Action Now to Protect Your Assets
Medicaid rules are constantly evolving, and early planning is key to maximizing your options. If you or a loved one may require long-term care, now is the time to review your financial situation and consider legal strategies to protect your assets.
Contact our office today to schedule a consultation. Let us assist you in developing a personalized Medicaid planning strategy that secures your future and provides peace of mind for you and your family.
