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Medicaid Facts


Eligibility Criteria for a “Single” Applicant:

Must be a US citizen or a lawfully admitted alien
Must be a Texas resident
Must meet a health assessment that certifies a need for long-term care
Must have an income of less than $2,250.00
Must have Countable Resources less than $2,000.00
Must be free of all Post-DRA penalties for uncompensated transfers (Penalty Divisor is $172.65)

Eligibility Criteria for a “Couple” both filing: All criteria is the same as above except the following:

Must have a combined income of less than $4,500.00
Must have Countable Resources less than $3,000.00

Exempt Assets:

Homestead less than $572,000.00
Personal Property
Automobile (unlimited value)
Burial plots
$2,000.00 in cash or Countable Resources

Spousal Impoverishment:

The applicant may only divert monthly income to the non-institutional spouse so that the non-institutional spouse has a gross monthly income of $3,090.00 or less
The Community Spouse can retain 50% of the couple’s combined Countable Resources with a maximum of $123,600.00 and a minimum of $24,720.00


1.Will the State take my house?
Yes! The Medicaid Estate Recovery Program will lay a claim on your home if you do not plan accordingly.

2.What is a Miller Trust or QIT?
A Miller Trust is a legal device used to excuse a Medicaid applicant for being over the income cap of $2,250.00 a month.

3.Can I just give my children my house?
This will result in transfer penalties (with few exceptions) and could prevent you from receiving the medical care they need.

4.What is the Lady Bird Deed?
It is a property deed that reserves a life estate for the grantor while conveying a future contingent remainder interest that is revocable. This deed is typically used to protect the applicants homestead.

5.Do I need to sell my house?
No, you may not need to sell your home to afford private pay. You can and should leverage the assets you do have to obtain Medical eligibility.

6.How much income can one spouse keep if the other spouse is on Medicaid?
The Community Spouse can have unlimited income. However, the rules allow the spouse to have a minimum of $4,090.00 of marital income.

7.Should I file for Veteran’s Aid and Attendance benefits?
You can, but it may take many months before you hear back from the VA regarding eligibility. Medicaid can be awarded in as little as 45 days and can cover more expenses than Aid or Attendance.

8.Will Medicaid pay past due medical bills?
Possibly. It depends on what types of assets the applicant owns, when the debt was incurred and when he or she entered long-term care. It should be thoroughly explored.

9.What if I have lots of consumer debt?
All of the applicant’s assets are thoroughly analyzed to determine the best course of action with regard to debt, monthly expenses, and or pre-existing financial obligations.

10.When should I consult an Elder Law Attorney?
When it becomes obvious that you can not return to your home because of medical needs.

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Kirchmer Law Firm, PLLC