• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Parman & Easterday

Oklahoma Estate Planning Attorneys

Call Now: (405) 843-6100
(913) 385-9400

Attend a Webinar - OK Attend a Webinar - KS/MO
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • What Our Clients Say
  • Estate Planning
    • Asset Protection
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • IRA and Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Powers of Attorney
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law
    • Emergency Medicaid
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • Asset Protection Worksheet
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Edmond Elder Law
        • Oklahoma City Elder Law
        • Overland Park Elder Law
        • Yukon Elder Law
      • Medicaid
      • Nursing Home Resources
    • Estate Planning
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
    • Frequently Asked Questions
      • Estate Planning
      • Elder Law
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Newsletters
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • Probate Checklist
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Probate Resources
      • Leawood Probate
      • Midwest City Probate
      • Moore Probate
      • Oklahoma City Probate
      • Overland Park Probate
    • Published Books
    • Pre Consultation Form
  • Communities We Serve
    • Kansas
      • Johnson County
        • Fairway
        • Mission
        • Overland Park
        • Prairie Village
        • Shawnee
      • Wyandotte County
    • Oklahoma
      • Edmond
      • Midwest City
      • Moore
      • Norman
      • Oklahoma City
      • Yukon
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
Home » Elder Law » Medicaid Healthy Spouse Allowances Updated for 2021

Medicaid Healthy Spouse Allowances Updated for 2021

January 12, 2021 by Larry Parman, Attorney at Law

community spouse resource allowanceBefore we focus on the subject that serves as the title of this post, we will share some background information to provide context.

Most senior citizens will require living assistance eventually, and the United States Department of Health and Human Services tells us that 35 percent of elders will live in nursing homes.

The state of Oklahoma has determined that the average cost for a year in a nursing home statewide is about $65,000-$80,000. Here in Oklahoma City, the median charge for a private room in 2019 has been $89,425 according to Genworth Financial.

That’s a lot of money to come up with late in your life, and Medicare does not pay for nursing home care. The Medicaid program may cover these expenses, and this is why it is relevant to people who will qualify for Medicare when they reach the age of eligibility.

Eligibility Requirements

Medicaid is intended for people with very limited monetary resources. You cannot qualify if you have more than $2000 in your own name, but there are some types of property that are not counted.

Your home fits into this category for twelve months after entering a nursing home, and you can retain ownership of one vehicle. Heirloom jewelry, wedding rings, and engagement rings are exempt, along with household items and personal belongings.

Prepaid burial plots are not counted, and you can have $1500 or less set aside for final expenses. The same amount of whole life insurance is allowed, and you can have unlimited term life.

Home Equity Limit

The home is not considered a countable asset, but there is an equity limit. In 2020, the limit has been $595,000, and it is going up to $603,000 next year. We should point out that there is no limit at all if a healthy spouse is remaining in the home.

Medicaid Community Spouse Allowances

In Medicaid parlance, a healthy spouse who can continue to live independently is referred to as the “community spouse.” The independent spouse is entitled to a Community Spouse Resource Allowance, which is half of the shared countable assets up to a certain limit.

The limit is one-half of countable assets up to $128,640 for 2020, and will rise to $130,380 in 2021.

A single person who is using Medicaid to pay for long-term care is entitled to retain $75 per month as a personal needs allowance. All other income must be contributed toward the cost of the care for which Medicaid is paying.

This dynamic is different when a healthy spouse is relying on the income. A community spouse qualifies for a Monthly Maintenance Needs Allowance which may draw from the spouse’s income if the community spouse’s income is too low.

The maximum Monthly Maintenance Needs Allowance is $3216 for 2020, and will increase to $3259.50 in 2021.

Attend a Free Webinar

We do everything possible to provide learning opportunities for members of the communities we serve. We hope the written materials on this website are very useful.  We also go the extra mile in another way.

Our attorneys hold webinars on an ongoing basis, and you will come away with a much more thorough understanding of the estate planning process if you attend one of these sessions. There is no charge, but we ask that you register in advance so we can reserve your spot.

You can visit our Oklahoma City webinar page to see the dates for our Oklahoma offices, and Overland Park, Kansas estate planning attorney to see dates for Kansas City and Overland Park, KS.

Need Help Now?

If you have learned enough to feel it is time for you to work with an attorney to put your estate plan in place, we are here to help. You can schedule a consultation in Oklahoma City by calling 405-843-6100, and in Overland Park by calling 913-385-9400.

We also have a contact form on this site that you can use to send us a message.  If you reach out electronically, you can expect to receive a prompt response.

 

  • Author
  • Recent Posts
Larry Parman, Attorney at Law
Latest posts by Larry Parman, Attorney at Law (see all)
  • New Year’s Resolution: Schedule an Estate Plan Review - January 19, 2021
  • 2021 Estate Tax Exclusion Update - January 14, 2021
  • Preparing for the Unexpected…and the Eventual - January 13, 2021

Filed Under: Elder Law Tagged With: Community Spouse Resource Allowance, Monthly Maintenance Needs Allowance, nursing home asset protection

Other Articles You May Find Useful

advance directives
What Are Advance Directives for Health Care?
Medicaid planning
Medicaid Allowances for the Healthy Spouse
Medicaid estate recovery
Can Medicaid Take Your Home?
Medicaid planning
Key Medicaid Facts and Figures
Oklahoma City elder law attorney
Tips to Prevent Elder Financial Exploitation
Caring for a Loved One with Alzheimer’s

Primary Sidebar

Parman & Easterday, LLP

DOWNLOAD OUR FREE ESTATE PLANNING CHECKLIST

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Upcoming Seminars

    To be notified of our upcoming Seminars please fill out this form!
See all seminars

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Where We Are

Parman & Easterday
parman_sidbr_map

Where We Are

Parman & Easterday
parman_sidbr1_map

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

footer-logo

The information on this Oklahoma Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys


© 2021 American Academy of Estate Planning Attorneys, Inc.
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube