What Are the Asset Limitations for Long-Term Care Medicaid?

Katie Camann
pile of cash bills

When working with clients facing an immediate long-term care need, one of the biggest hurdles you’ll encounter is Medicaid eligibility. For many families, the challenge isn’t income—it’s assets. Too many countable assets can disqualify clients from benefits, but the good news is you can help them plan strategically to qualify without draining everything they’ve worked for.

Read More: What Is the Income Limit for Long-Term Care Medicaid?

Medicaid Asset Limits at a Glance

Single Client / Institutionalized Spouse: Most states allow $2,000 in countable assets.

Married Couple, Both Need Care: Typically $3,000 in combined countable assets.

Married Couple, One Needs Care: The community spouse can keep a larger share under the Community Spouse Resource Allowance (CSRA).

  • Standard CSRA States: spouse must spend down to the set allowance (up to $157,920 in 2025).
  • Minimum/Maximum CSRA States: spouse can keep half of the couple’s assets, subject to state limits ($31,584–$157,920 in 2025).

Exempt vs. Countable Assets

Although these limits may seem daunting at first, the good news is clients don’t have to give up everything. Medicaid only looks at countable assets, while exempt assets (like a primary residence, one vehicle, personal belongings, life insurance, and funeral expense trusts) are protected. Common countable assets include bank accounts, investments, additional real estate, IRAs, and certain annuities.

Read More: How to Spend Down Retirement Accounts for Medicaid

Helping Clients Spend Down Assets

This is where your guidance makes a real impact. While clients may fear they need to “spend it all” on nursing home care before qualifying, you can show them a smarter way. By repositioning excess assets into a Medicaid Compliant Annuity (MCA), you can help them:

  • Protect what they’ve saved
  • Accelerate Medicaid eligibility
  • Reduce the financial strain on the healthy spouse
  • Preserve their legacy for family

Positioning Yourself as the Expert

Clients facing long-term care decisions are often overwhelmed. By understanding Medicaid’s asset rules and leveraging solutions like the MCA, you can step in as a trusted advisor who not only simplifies the process but also protects what matters most to them.

If you’re looking for more support in offering these solutions, our team is here to help. Book a call with us to explore how our products and resources can strengthen your role in long-term care planning.

Katie Camann
By Katie Camann | Senior Content Specialist

As Senior Content Specialist, Katie drafts and edits content across multiple platforms, including blogs, guides, emails, videos, website pages, and more. She conducts research and gathers up-to-date information to keep our clients well-informed.