At Figeroux and Associates, located at 26 Court Street, Suite 701, Brooklyn, New York, 11242, with website www.askthelawyer.us, and phone number 855-768-8845, we understand these challenges and are dedicated to helping families develop effective Medicaid planning strategies. This article, updated as of January 2025, outlines the step-by-step process of planning for your ill spouse’s out-of-home care with the judicious use of Medicaid.
Understanding the Medicaid Landscape: Income vs. Resources
The fundamental distinction in Medicaid eligibility lies between income and resources (assets).
- Income refers to regular payments received by an individual, such as Social Security benefits, pensions, interest, and dividends. For 2025, the Medicaid monthly income limit for an individual in New York is $1,800, and for a married couple, it is $2,433. For institutional care (nursing home), the applicant’s income, less a small personal needs allowance ($50/month in 2025), is generally expected to go towards their care costs.
- Resources are anything an individual owns that can be converted to cash, such as bank accounts, stocks, bonds, real estate (other than the primary residence, with certain limitations), and certain life insurance policies. As of 2025, the Medicaid resource limit for an individual is $32,396, and for a married couple, it is $43,781.
The challenge arises when a couple has income or resources exceeding these limits. This is where strategic planning becomes essential…