Once your doctor has determined you qualify for Medicaid on a needs basis, you will have to meet the limitations for assets. Assets are divided into two categories, exempt and non-exempt, and are regarded differently in determining eligibility.
Exempt assets will not affect your ability to qualify for Medicaid. Exempt assets include:
- The home you live in full-time
- One vehicle of reasonable value
- Pre-paid funeral or burial plans
- Cash value life insurance below $1,500 in value
- Household goods such as furniture, jewelry, appliances
- Up to $2,000 in cash
All other assets, including IRAs in some states, are counted as non-exempt assets and will be used in determining your eligibility for Medicaid. Some states will exempt rental houses, farms or other types of real estate that generate an income. Instead of counting as assets, the money earned from the property is counted as income, which may help or hurt your application, depending on your state’s rules and the amount of income being generated from the investment property.
A qualified elder law attorney can help you determine assets and income, and how best to manage these items so that you can qualify for Medicaid coverage.
