If you are looking into long-term care Medicaid programs, you should understand how the program will assess your income and assets. Medicaid is a need-based program that relies on your finances to determine eligibility.
The state will want a complete rundown of all income you have coming in and all the assets you own. There is a special rule concerning ownership of assets.
In general, the state will consider your income and assets as it figures out your eligibility. If you want to be eligible, you must understand the state does have a five-year lookback period, which means it will consider any assets you transferred, sold or otherwise got rid of during the five years prior to your application. There are only a few exceptions to this rule.
The state will generally use all income your receive when figuring out your eligibility. Note that any money you earn will have to go to the long-term care facility before Medicaid will pay. You may get to keep some money for personal expenses.
The rules for assets and how they apply to your eligibility are quite complex. The value of your assets cannot exceed $2,000 if you are single or $3,000 if you have a spouse. There are many exceptions and rules about counting assets. For example, you do not have to count one vehicle you own. Remember the lookback period, though, as trying to reduce your assets by selling or giving them away may not help.