What Assets Can You Keep and Qualify for Medicaid in Michigan?
Michigan Medicaid provides health insurance coverage to low-income families and individuals. In addition to meeting the income criteria to qualify, you must not exceed the maximum amount of countable assets. Individuals are allowed $2,000 in countable assets. Families or couples are limited to $3,000 in assets. Fortunately, not all assets are countable. Cash, bank accounts, stocks, bonds and IRAs are not exempt. Those applying for nursing home Medicaid that possess more than the allowed assets, are allowed to spend down assets under Michigan Medicaid law.
Your homestead exempt property is not included in your countable assets. The maximum equity value of your Michigan home cannot exceed $500,000. If you are applying for Medicaid to cover nursing home expenses, you can keep the property as long as your healthy spouse remains in the home. If you do not have a spouse, you are allowed to maintain the home as long as you are expected to return.
Medicaid recipients are allowed to have one vehicle. The vehicle must be used for medical visits or for employment. Any additional vehicles are considered assets and will be counted.
Medicaid does not count your personal possessions or household goods. Furniture, computers, televisions, jewelery, clothing and other personal items are exempt.
Prepaid Funeral Arrangements and Life Insurance
Medicaid provides a burial allowance which can consist of a $2,000 prepaid funeral contract with a funeral home or $1,500 in funds designated for burial in a separate bank account. You also are allowed life insurance with a face value of $1,500 or less.