Can You Get Medicaid If You Own a House?

Medicaid is a government program providing health coverage to millions of Americans with limited income and resources. Owning a house can present questions regarding Medicaid eligibility, as assets are a key factor in determining who qualifies for benefits. This article explores how a primary residence is considered within Medicaid’s financial eligibility rules, especially concerning long-term care.

Home as an Asset for Medicaid Eligibility

A primary residence is generally considered for Medicaid eligibility, but it often qualifies for an exemption under specific conditions. For an individual applying for long-term care Medicaid, the home is typically not counted as an asset if the applicant expresses an intent to return home. Even if a person moves into a nursing facility, their home can remain an exempt asset as long as they intend to return, regardless of whether they ultimately do.

There are also equity limits that apply to the home’s value in many states. For instance, in 2025, the equity interest in a primary residence must generally not exceed a certain amount, which typically ranges from $730,000 to $1,097,000, depending on the state. If the home’s equity exceeds this limit for a single applicant, it is considered a countable asset, affecting eligibility. However, some states, like California, do not impose an equity limit on a primary residence for long-term care Medicaid applicants.

Beyond these conditions, the home is also typically exempt if certain individuals continue to live there. When family members reside in the home, its value is often fully protected and does not count towards the asset limit, regardless of its equity.

Spousal and Dependent Protections

Specific rules are in place to prevent the financial impoverishment of a healthy spouse when their partner requires Medicaid-funded long-term care. These are known as “spousal impoverishment” provisions, which allow the non-applicant spouse, often called the “community spouse,” to retain a portion of the couple’s combined assets and income. The home is a significant part of these protections, as it generally remains an exempt asset regardless of its value if the community spouse continues to reside there.

The Community Spouse Resource Allowance (CSRA) is a key component of these protections, setting the amount of countable assets the community spouse can keep. For 2025, the CSRA typically falls within a range, often between $31,584 and $157,920, though specific figures vary by state. This allowance ensures that the non-applicant spouse has sufficient resources to maintain their life without depleting their savings to qualify the other spouse for Medicaid.

The home can also be protected if certain dependent family members live in it. This includes a minor child (under 21), a blind child, or a disabled child of any age. Additionally, some rules may exempt the home if an adult child has lived there for a specified period, at least two years, and provided care that prevented the applicant’s institutionalization.

Medicaid Estate Recovery Programs

Medicaid Estate Recovery Programs (MERP) allow states to seek repayment for certain Medicaid benefits paid on behalf of a recipient, particularly for long-term care services. Federal law mandates that states recover costs from the estates of deceased Medicaid recipients who were 55 years or older when they received long-term care or were permanently institutionalized. The home, even if it was exempt during the recipient’s lifetime for eligibility purposes, can become subject to recovery after their death.

The state’s claim is typically against the deceased individual’s estate, which often includes the home as the most valuable asset. However, states cannot pursue recovery while a surviving spouse is alive and residing in the home. Recovery is also generally deferred or prevented if a minor child (under 21) or a blind or permanently disabled child of any age lives in the home.

Some states may defer recovery until the death of the surviving spouse, or until the minor or disabled child no longer resides in the home. There are also provisions for undue hardship waivers, where recovery might be waived or reduced if it would cause substantial hardship for the heirs.

Understanding Asset Transfer Rules

Medicaid has specific rules regarding the transfer of assets, including a home, to prevent individuals from giving away property simply to meet eligibility limits. A “look-back period” is in place, which is generally 60 months, or five years, immediately preceding the date a person applies for Medicaid long-term care. During this period, state Medicaid agencies review all financial transactions to identify any uncompensated transfers of assets.

If assets, such as a home, were transferred for less than fair market value during this look-back period, a penalty period of Medicaid ineligibility can be imposed. The length of this penalty is calculated by dividing the total value of the uncompensated transfer by the average monthly cost of private-pay nursing home care in the state. For example, if a state’s average monthly cost is $10,000 and $100,000 was transferred, a 10-month penalty period would result.

The penalty period does not begin until the applicant would otherwise be eligible for Medicaid, meaning they have met all other income and asset requirements and are already receiving long-term care services. This means that even if a transfer occurred years ago within the look-back period, the penalty might only start when care is needed.