When one spouse enters a nursing home, the other spouse often worries about losing their financial security.

Medicaid rules include protections designed to prevent the healthy spouse from becoming impoverished.

Community Spouse Protections

The spouse who continues living in the community is known as the community spouse.

Medicaid allows the community spouse to retain a portion of the couple’s assets.

Asset Allowances

The community spouse is generally allowed to keep a share of the couple’s countable assets up to a maximum amount set by federal and state rules.

These rules are intended to ensure that the spouse remaining at home has sufficient resources to continue living independently.

Income Protections

Income rules also protect the community spouse.

If the spouse at home does not have enough income to meet basic living expenses, Medicaid may allow them to receive a portion of the institutionalized spouse’s income.

Planning Opportunities

Because these rules are complex, careful planning can help maximize protections for the spouse remaining at home.