Each year, the Florida Department of Children and Families updates the limits for a person to qualify for Medicaid assisted living or nursing home benefits from time to time. These changes are typically based on inflation and other factors in accordance with federal law. If an applicant exceeds these limits on paper, the applicant will not qualify for the benefits without additional assistance by a qualified Florida Medicaid planning attorney.

What are the new limits for 2025?

The new income limit for Medicaid assisted living or nursing home benefits in 2025 is $2,901.00 per month. This means that if an applicant makes more than $2,901.00 per month in income, the applicant will not qualify for benefits, without utilizing an experienced Medicaid planning attorney. 

The asset limit for Medicaid assisted living or nursing home benefits is $2,000 for an individual $3000 for spouses applying together. This means that if an applicant owns more than this limit in assets, the applicant will not qualify for benefits, without employing an experienced Medicaid planning attorney.  

A summary of other updates to the limits for acceptance for Medicaid assisted living or nursing home benefits can be found at the Department of Children and Families website.

What types of assets count towards the asset limit?

In order to determine whether an applicant exceeds the asset limit for Medicaid assisted living or nursing home benefits, it’s important to consider whether an asset is countable under the Medicaid rules. The biggest item that is not countable in Florida is the applicant’s home if it is under a certain value. Therefore, if the applicant owns his or her home, the value of the home is not usually counted towards an applicant’s asset amount. Another example are certain retirement accounts. If the applicant has a qualifying retirement account, the amount in the account will not count as an asset, but the distributions from the account will count towards an applicant’s income. Whether or not an asset is countable can become complex, which the assistance of an experienced Medicaid planning attorney is highly recommended.

If me or my loved one is over the limits, can I still qualify for benefits?

The short answer is yes, you can still qualify for Medicaid assisted living or nursing home benefits even if your income or assets are over the limits. However, you will need to work with an experienced Medicaid planning attorney in order to qualify. Here are some examples of what may be done to allow for an applicant that exceeds the limits to qualify for Medicaid assisted living or nursing home benefits in Florida. 

If an applicant has more income than the limit, a qualified income trust will be required. A qualified income trust takes any income received by an applicant that is over the limit and deposits it in a separate trust account, which is then sent to the nursing home for payment. The qualified income trust is a strategy that will allow anyone who is over the income limit to still qualify for Medicaid assisted living or nursing home benefits if they would otherwise qualify. 

A far more frequent situation is when the applicant exceeds the asset limit. In this situation there are several options that a Medicaid planning attorney can use to legally rearrange the applicant’s assets to allow for them to qualify for Medicaid benefits. 

The first strategy is using a personal services contract. A personal services contract allows for an applicant to transfer a certain amount of assets to another in exchange for services relating to the care of the applicant. This includes a written contract between the applicant and the service provider. Since the main purpose of Medicaid planning for assisted living or nursing home benefits is to preserve the applicant’s assets for his or her family or estate plan, typically the service provider is a family member or members who will be providing the care to the applicant. It is important to remember that the income received by the service provider under a personal services contract is typically taxable, so a personal services contract may not be the best option for every situation. 

Other strategies are converting assets that are countable into assets that are not countable. This may include purchasing a car or buying a rental property, depending on the applicant’s specific needs. Due to the highly specific nature of a Medicaid plan, it is important to talk with an experienced Medicaid planning attorney in order to examine the options available to allow an applicant who exceeds the asset limit to successfully qualify for Medicaid assisted living or nursing home benefits. The most important take-away is that even people with substantial assets can qualify with the right help.

Contact us today to schedule a free consultation.

If you or a loved one are interested in learning more about applying for Florida Medicaid assisted living or nursing home benefits, contact us today for a free consultation. During the consultation, you will talk with one of our experienced Medicaid planning attorneys. We will review the assets and income of the applicant and discuss the available options for qualifying for Medicaid assisted living or nursing home benefits.