Medicaid nursing home eligibility — income and asset limits
Medicaid is the only public program that pays for long-term nursing home care in the United States. About 62% of long-stay nursing home residents are on Medicaid. Here's how eligibility actually works.
Income limit (2025)
In most states, an individual applicant must have monthly income below $2,901 (300% of the SSI federal benefit rate). Income above this can still qualify via a 'Miller trust' (qualified income trust) in income-cap states. About a dozen states use a 'medically needy' pathway where you 'spend down' excess income on medical bills each month.
Asset limit
Most states limit countable assets to $2,000 for a single applicant. A few states (California, Arizona, others) have eliminated the asset test entirely. The applicant's primary home (up to ~$730,000 of equity), one car, personal effects and prepaid funeral are typically exempt.
Spousal protections
If one spouse needs Medicaid and the other still lives at home (the 'community spouse'), the community spouse can keep a Community Spouse Resource Allowance (CSRA) of up to $157,920 (2025) and a Minimum Monthly Maintenance Needs Allowance (MMMNA) of $2,555–$3,948.
The 5-year look-back
Medicaid reviews asset transfers in the 60 months before your application. Gifts or below-market transfers create a penalty period — a number of months Medicaid won't pay, calculated by dividing the gift value by your state's average monthly nursing home cost.
Estate recovery
Federal law requires states to seek recovery from a deceased Medicaid recipient's estate for long-term care benefits paid. The family home is the main target. Exceptions apply for surviving spouses, minor children and adult children with disabilities.
How to apply
Apply through your state Medicaid agency, either online, by mail or in person at your local Department of Social Services / Human Services office. You'll need 5 years of bank statements, the deed to your home, life insurance policies, and proof of income. Most nursing homes accept 'pending Medicaid' admissions.
Frequently asked questions
Authoritative sources
The figures and rules in this guide are drawn from the following official and independent sources. Open any link to verify the latest published numbers.
- Medicaid eligibility — long-term care
Medicaid.gov
- Spousal impoverishment
Medicaid.gov
- State Medicaid agency contacts
Medicaid.gov
- Find an elder-law attorney
National Academy of Elder Law Attorneys (NAELA)
About this guide
Written and reviewed by the Nursing Home Match editorial team. We update guides at least annually and verify every figure against the official sources listed above. This guide is general information, not personal, medical, financial or legal advice. Always confirm details on Medicare.gov Care Compare (United States) or My Aged Care (Australia), or speak to a qualified adviser before making decisions.