• Skip to main content
  • Skip to primary sidebar
Zimmer Law Firm logo Zimmer Law Firm
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Butler County
        • Fairfield
        • Hamilton
        • West Chester
      • Clermont County
        • Milford
      • Hamilton County
        • Blue Ash
        • Cincinnati
        • Loveland
        • Montgomery
        • Sharonville
      • Warren County
        • Mason
    • Our Client Care Program
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA Inheritance Planning
    • Legacy Wealth Planning
    • LGBTQ Estate Planning
    • Medicaid Planning and Elder Law
    • SECURE Act Impacts
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Adult Legal Protection Plan
  • Live Events
    • Webinars
  • Resources
    • DocuBank
    • Ohio Elder Law Resources
      • Blue Ash
      • Cincinnati
      • Elder Law & Medicaid Definitions
      • Fairfield
      • Hamilton
      • Loveland
      • Montgomery
      • Sharonville
      • West Chester
    • Estate Planning Resources
      • Estate & Gift Tax Figures
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Free Estate Planning Checklist
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Legacy Planning Definitions
      • Top 10 Estate Planning Techniques
    • FAQs
    • Pre Consultation Form
    • Probate Resources
      • Blue Ash
      • Cincinnati
      • Hamilton
      • Loveland
      • Mason
      • Milford
      • Probate Checklist
      • Sharonville
      • Trust Administration & Probate Definitions
      • West Chester
    • Presentations
  • Blog
  • Reviews
  • Contact

Zimmer Law Firm

Estate Planning & Elder Law Attorneys

513.721.1513
Request a Free Consultation
Request a Free Consultation

Google initial with star next to it

  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Butler County
        • Fairfield
        • Hamilton
        • West Chester
      • Clermont County
        • Milford
      • Hamilton County
        • Blue Ash
        • Cincinnati
        • Loveland
        • Montgomery
        • Sharonville
      • Warren County
        • Mason
    • Our Client Care Program
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA Inheritance Planning
    • Legacy Wealth Planning
    • LGBTQ Estate Planning
    • Medicaid Planning and Elder Law
    • SECURE Act Impacts
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Adult Legal Protection Plan
  • Live Events
    • Webinars
  • Resources
    • DocuBank
    • Ohio Elder Law Resources
      • Blue Ash
      • Cincinnati
      • Elder Law & Medicaid Definitions
      • Fairfield
      • Hamilton
      • Loveland
      • Montgomery
      • Sharonville
      • West Chester
    • Estate Planning Resources
      • Estate & Gift Tax Figures
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Free Estate Planning Checklist
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Legacy Planning Definitions
      • Top 10 Estate Planning Techniques
    • FAQs
    • Pre Consultation Form
    • Probate Resources
      • Blue Ash
      • Cincinnati
      • Hamilton
      • Loveland
      • Mason
      • Milford
      • Probate Checklist
      • Sharonville
      • Trust Administration & Probate Definitions
      • West Chester
    • Presentations
  • Blog
  • Reviews
  • Contact

Overview of 2021 Medicaid Allowances

Home Our Blog Overview of 2021 Medicaid Allowances

By Barry Zimmer on December 23rd, 2020 in Elder Law

Medicaid allowancesYou may wonder why the Medicaid program would be relevant to someone that is going to qualify for Medicare coverage. The reason why it should be on your radar is because Medicare does not pay for long-term care, but Medicaid will cover these expenses.

Long-Term Care Costs

According to the U.S. Department of Health and Human Services, 70 percent of seniors will need living assistance, and more than one third of them will require nursing home care.

In our area, you are looking at somewhere in the vicinity of $100,000 for a year in a private room in a quality nursing home. The average length of stay is one year, and married couples should brace themselves for two potential rounds of nursing home expenses.

Clearly, it is not easy to get out a checkbook and pay for nursing home care with no outside assistance, and this is why Medicaid eligibility is so important.

2021 Medicaid Parameters

There is a $2000 Medicaid asset limit, but there are various different exemptions and allowances. The figures are updated each year to account for inflation, and the 2021 numbers are now available.

Before we share that information, we will look at some of the generalities that remain constant. One motor vehicle is not counted, and Medicaid does not consider household items and personal belongings. Wedding rings, engagement rings, and heirloom jewelry are exempt as well.

Up to $1500 can be set aside for final expenses, and an applicant can have the same amount of whole life insurance. Prepaid burial plots are not counted, and there is no limit to the amount of term life insurance that can be carried, because this type of insurance has no cash value.

Your home is not a countable asset, but there is an equity limit. This year, it has been $595,000 in Ohio, and in 2021, it will go up to $603,000.

Allowances for the Healthy Spouse

In many instances, a person will apply for Medicaid when their spouse is still capable of independent living. Under these circumstances, the healthy spouse (or “community spouse” in Medicaid lingo) is entitled to a couple of allowances.

There is a Community Spouse Resource Allowance that gives the healthy spouse the ability to keep half of the shared countable assets up to a certain limit. This year, the limit is $128,640, and it will go up to $130,380 next year.

We should point out the fact that this increase is not going to go into effect until July 1, 2021, but they announce the updated figures just prior to the new year.

With the exception of a $50 per month personal needs allowance, a Medicaid recipient is required to contribute their income toward the cost of the care that is being received. However, if a healthy spouse is relying on the income, they can qualify for a Monthly Maintenance Needs Allowance.

The maximum allowance this year is $3216 per month, and the minimum is $2113.75. As of July 1, 2021, the max allowance will be $3259.50 a month, and the minimum will be increased to $2155 monthly.

Five-Year Look Back Period

You can divest yourself of countable assets to qualify for Medicaid. Direct gift giving is a possibility, and you can alternately convey assets into an irrevocable trust.

If you establish this type of trust, you can still receive distributions of the trust’s earnings, so this is an appealing option.

You have to act in light of the five-year look back period. The divestitures must be completed at least 60 months before you submit your application for Medicaid coverage.

Access Our Free Worksheet

There are hundreds of posts on this blog you can explore to learn more about important estate planning and elder law topics, and there are other resources that are offered free of charge.

One of them is our estate planning worksheet that you can use to gain a better understanding of the process. To get your copy, visit our worksheet page and follow the simple instructions.

Need Help Now?

If you already know that it is time for you to work with an attorney to put an estate plan in place, you can set the wheels in motion right now.

We can be reached by phone at 513-721-1513, and if you would rather send us a message, fill out our contact form and we will get back in touch with you promptly.

 

 

Primary Sidebar

Request a Free Consultation

  • This field is for validation purposes and should be left unchanged.

What Our Clients Say

Some years ago, Barry Zimmer suggested we do a basic estate plan for our son when he went to college. We had no idea how important it would be! In our son's freshman year, he ended up in the hospital, and we were able to get crucial information about his condition because we had a health care ...

Read All Testimonials

Zimmer Law Firm

9825 Kenwood Road
Suite 201
Cincinnati, OH 45242
  • Facebook Logo
  • Linkedin Logo
  • X Logo
  • Youtube Logo

Copyright © 2025 Zimmer Law Firm
Disclaimer Privacy Policy

 

Make a Payment