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Married
Couples And Medicaid Division Of Assets
Division of Assets is the name commonly used for
the Spousal Impoverishment provisions of the Medicare Catastrophic Act
of 1988. It applies only to couples. The intent of the law was to
change the eligibility requirements for Medicaid where one spouse
needs nursing home care while the other spouse remains in the
community (i.e., at home). The law, in effect, recognizes that it
makes very little sense to impoverish both spouses when only one needs
to qualify for Medicaid assistance for nursing home care.
As a result of this recognition, division of assets was born.
Basically, in a division of assets, the couple gathers all their
countable assets together in a review. Exempt assets (discussed in
other articles) are not counted.
The countable assets are then divided in two, with the at-home or
"community spouse" allowed to keep one half of all countable
assets to a maximum of approx. $104,400. The other half of countable
assets must be "spent down" until $2,000 remains. The amount
of the countable assets which the at-home spouse gets to keep is
called the Community Spouse Resource Allowance (CSRA).
Each state also establishes a monthly income floor for the at-home
spouse. This is called the Minimum Monthly Maintenance Needs Allowance
(MMMNA). This permits the community spouse to keep a minimum monthly
income ranging from about $1,751 to $2,610.
If the community spouse does not have at least $1,750 in income, then
he or she is allowed to take the income of the nursing home spouse in
an amount large enough to reach the MMMNA (i.e. up to $1,750). The
nursing home spouse's remaining income goes to the nursing home. This
avoids the necessity (hopefully) for the at-home spouse to dip into
savings each month which would result in impoverishment.
The floor can be raised by certain living allowances and utility
allowances which are allowed by the state. Under no circumstances,
will the at-home spouse be allowed to keep more than $2,610 of total
income. If "hardship" circumstances warrant, this allowance
can be appealed. |
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James E. De Martino is licensed
to practice in the State of New Jersey.
We specialize in NJ Medicaid and Asset Protection legal services. |
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