We are going to look at Medicaid planning and the 2024 spousal allowances in this post, and there have been increases over the 2023 levels. But first, we will set the stage with some key facts about seniors, long-term care, and Medicare.
Medicare and Long-Term Care
Most senior citizens will require living assistance eventually. The Department of Health and Human Services tells us that 35 percent of elders will live in nursing homes.
The state of Connecticut has determined that the average cost for a month in a nursing home statewide is $14,524. In Westport, the median annual charge for a private room is almost $240,000 according to Genworth Financial.
That’s a lot of money to come up with late in your life, and Medicare does not pay for nursing home care. Medicaid will cover these expenses, and this is why it is relevant to people who will qualify for Medicare when they reach the age of eligibility.
Eligibility Requirements
Medicaid is intended for people who have very limited monetary resources. You cannot qualify if you have significant property in your name, but some types of property are not counted.
Your home fits into this category, and you can retain ownership of one vehicle. Heirloom jewelry, wedding rings, and engagement rings are exempt, along with household items and personal belongings.
Prepaid burial plots are not counted, and you can have $1,500 or less set aside for final expenses. The same amount of whole life insurance is allowed, and you can have unlimited term life.
2024 Medicaid Home Equity Limit
Now we can get to the updated figures. The home is not considered to be a countable asset, but there is an equity limit. In 2024, the home equity limit is $1.071 million in Connecticut. We should point out the fact that there is no limit at all if a healthy spouse is remaining in the home.
2024 Medicaid Community Spouse Allowances
In Medicaid parlance, a healthy spouse who can continue to live independently is referred to as the “community spouse.” The independent spouse is entitled to a Community Spouse Resource Allowance, which is half of the countable assets up to a certain limit.
In 2024, this limit is $154,140. There is also a minimum level of $50,000, so a healthy spouse can keep this much even if it is more than half of the assets.
When a single person is using Medicaid to pay for long-term care, they are entitled to a $75-a-month personal needs allowance. The rest of their income is contributed toward the cost of the care they are receiving.
This dynamic is different when a healthy spouse is relying on the income. They can qualify for a Monthly Maintenance Needs Allowance that gives them the ability to draw from their spouse’s income.
The maximum Monthly Maintenance Needs Allowance this year is $3,853.50, and the minimum is $2,465.
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We do everything possible to provide learning opportunities for members of the community. The written materials on this website are very useful, and we go the extra mile in another way.
Our attorneys hold seminars on an ongoing basis, and you can come away with a more thorough understanding of the process if you attend one of these sessions.
There is no charge, but we ask that you register in advance so we can reserve your spot. You can visit our events page to obtain more details and registration information.
Need Help Now?
If you have learned enough to know that it is time for you to work with an attorney to put an estate plan in place, we are here to help. You can schedule a consultation at our Glastonbury or Westport, CT estate planning offices by calling us at 860-548-1000.
We also have a contact form on this site you can use to send us a message, and if you reach out electronically, you can expect to receive a prompt response.
Mr. McCann is licensed to practice before the courts of the State of Connecticut. He is a member of the American Academy of Estate Planning Attorneys.
Mr. McCann provides to his clients, trust and estate planning, and trust and estate administration services. Formerly, Mr. McCann was an adjunct professor of economics in the State of Connecticut Community College system, and a Commissioner of the Town of Simsbury Zoning Board of Appeals.