Frequently asked questions

Medicaid is a federal and state program that pays for a number of medical care services. It will also pay for care in a skilled nursing home. Medicaid is based on financial need; applicants have to have limited assets and income.


The applicant is allowed to keep the following:
– up to $2,000 in bank accounts, stocks or other assets
– a prepaid funeral in any amount
– a designated burial account (to subsidize the funeral) in the amount of $1,500

All other assets must be spent on care. Income is non countable but all income minus $72.80 (amount applicant keeps) will be paid to the nursing facility each month towards care cost.

Income and assets are treated a follows:

  • Income: The spouse at home is allowed to keep all of her or his monthly income. However if it is less than a federal and state minimum (referred to as a “floor”) the spouse living in the community may be allowed to keep some of the applicants income to bring her or him up to that amount. Your Medicaid consultant will calculate these figures for you.
  • Assets: Medicaid considers all assets (excluding the primary residence) to be jointly held regardless of whose name they are in. The state does not honor premarital agreements, which means even if assets are held separately they would be considered the property of the other spouse in the event of a divorce or death, Medicaid states that they are all available. Assets over the allowance can be referred to as a spend down and considered by Medicaid to be available and spent on care.

26 East Water St. Suite 4 Rockland, MA 02370
Phone: 1-617-969-2205
Fax: 1-617-969-2406

Many people confuse Medicare with Medicaid. The following may be helpful:

Pays for medical and rehabilitative care onlyPays for medical, rehabilitative and custodial care
Is funded by participants not the stateMedicaid is a joint partnership with the states
Is not based on financial needIs based on financial need


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