Michigan Medicaid Long Term Care Eligibility for 2025

Michigan Long Term Care

Michigan Medicaid, also known as Medical Assistance (MA), provides long-term care services for low-income seniors and individuals with disabilities. Programs include Institutional Medicaid for nursing homes, Home and Community Based Services (HCBS) Waivers, and Regular Medicaid (Aged, Blind, and Disabled). These programs help individuals receive care in nursing homes, assisted living, adult foster care, or at home while promoting independent living when possible.

Eligibility in 2025

1. **Residency and Citizenship** – Applicants must be Michigan residents and U.S. citizens or have proper immigration status.

2. **Age/Disability** – Applicants must be aged 65 or older, blind, or disabled. They must also meet medical requirements consistent with the level of care requested, such as a Nursing Facility Level of Care (NFLOC).

3. **Income Limitations** – For single applicants, income must not exceed $2,901 per month for Institutional Medicaid and HCBS Waivers. For Regular Medicaid, the income limit is $1,255 per month (single) or $1,703 per month (couple). Excess income can be managed via spend-down or a Qualified Income Trust (QIT).

4. **Asset Limitations** – Countable assets must not exceed $2,000 for single applicants and $3,000 for couples. Exempt assets include one primary residence (equity limit $730,000), one vehicle, personal belongings, and burial trusts. Michigan’s 5-year look-back period applies to transfers or sales below fair market value.

Exempt Assets for 2025 for an Applicant in Michigan Include:

i. $2,500 or less in countable assets if single. Exceeding this limit on the first of the month renders the applicant ineligible for that month.

ii. Personal effects and household goods.

iii. One home (equity limit $730,000) if a spouse, a child under 21, or a disabled person resides there. It can also be transferred penalty-free to qualifying individuals such as spouses, children under 21, or caregivers who delayed institutionalization by living with the applicant.

iv. One vehicle, regardless of value, if used for employment, medical treatment, or by a community spouse.

v. Burial trusts up to $12,000 and irrevocable burial spaces.

vi. Life insurance policies with a face value of $1,500 or less per spouse.

vii. Joint bank accounts if documentation shows the co-owner contributed equally or more.

viii. Unsold real estate actively listed at fair market value for at least one month.

Spousal Rules in 2025

**Community Spouse Resource Allowance (CSRA):** A non-applicant spouse may retain 50% of the couple’s assets, up to $157,920. If their share is under $31,584, they may retain 100% of the assets, up to that threshold.

**Minimum Monthly Maintenance Needs Allowance (MMMNA):** A community spouse may keep part of the applicant spouse’s income if their income is below $2,555/month. This allowance can increase to a maximum of $3,948/month if high shelter costs are documented.

Michigan Long Term Care Insurance Partnership in 2025

This program allows individuals to protect assets equal to the value of their long-term care insurance payouts. For example, a $155,000 policy protects $155,000 in assets. Each spouse must purchase a separate policy for full protection. Once the policy benefits are exhausted, Medicaid eligibility rules apply.

How to Apply for Michigan Medicaid

Applications can be submitted through the Michigan Department of Health & Human Services or at local county offices. Assistance is also available through Area Agencies on Aging. Ensure all income and asset criteria are met before applying to avoid delays or denials.