One of the central concerns people have with regard to Medicaid is: How much in assets can someone keep and be eligible for Medicaid?
In Illinois, the Medicaid asset allowance for a single person has been $2,000. For a long time Missouri was stuck being one of the lowest of most states in the country with a Medicaid asset allowance of only $1,000. But, Missouri passed a law a couple of years ago that has now allowed it to increase its Medicaid asset allowance over the next few years. As of July 1, 2018, Missouri’s asset allowance has increased to $3,000 with a plan to increase it an additional $1,000 per year until it reaches $5,000, then it will be indexed with inflation.
In this Elder Law Minute, Wes Coulson, O’Fallon Illinois Elder Law attorney, discusses the Medicaid asset allowance increase in Missouri and compares it to the unchanged asset limits in Illinois.
Medicaid Asset Allowance Increase In Missouri, But Not Illinois
Hi, I’m Wes Coulson from Coulson Elder Law with a Missouri office across from Westport Plaza and an Illinois office in O’Fallon a few blocks from the new St. Elizabeth’s Hospital.
One of the central concerns I know people have with regard to Medicaid is: How much in assets can someone keep and be eligible for Medicaid?
Traditionally, in Illinois for a single person that has been $2,000, and for a long time Missouri was stuck being one of the lowest of most states in the country at only $1,000. But, Missouri passed a law a couple years ago that has now allowed it to, if you will, pass Illinois and soon, unless Illinois does something, to be leaving Illinois in the dust.
As of July 1st of this year, 2018, Missouri’s asset limit has gone up to $3,000. Next year, July 1st, it will go up to $4,000. The year after that on July 1st, it will increase to $5,000 and after that it will be indexed to inflation in a way that will allow that to increase to stay up with inflation. Illinois, on the other hand, is still stuck with the same $2,000 allowance that it has had since I was a small child, I think. Not actually that long, but for as long as I have been practicing law, and that’s closing in on 40 years.
Missouri’s monthly income allowance is now up to $50. Illinois’ is still stuck back at the same $30 that it was set at when Medicaid was passed into law in 1965. So, hopefully this will be some sort of call-to-action to Illinois to be a little bit more kind and realize that as costs have increased over time, the needs of people in nursing homes have increased with them. Thanks.
For more information Medicaid and assets, visit these articles:
- Do Transfers of Assets From One Spouse to the Other Affect Medicaid Eligibility?
- Do Living Trusts Protect Assets From Medicaid or VA Spend Down?
- Is Protecting Assets From Long-Term Care Costs Legal?
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Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (618) 632-7000 or (314) 567-9292, or Contact Us and we will get in touch as soon as possible.