In order to understand Medicaid qualification, you must first understand how Medicaid treats your assets. Essentially, Medicaid breaks down your assets into two separate categories; exempt and countable assets.
Exempt assets are those which do not count towards the overall limit on assets. The following assets are exempt:
- The Home of the Medicaid applicant.
- Personal belongings such as furniture, appliances, jewelry and clothing.
- One vehicle.
- Pre-paid funeral and burial plots.
- Cash value of life insurance policies if the face value exceeds $1500.00.
- A small checking or savings account, total value cannot exceed $2000.00 in Michigan.
Assets that are not exempt are considered countable. This typically includes checking accounts, savings accounts, certificates of deposit, money market accounts, stocks, mutual funds, bonds, IRAs, 401(K)s and a second home or property.
The Medicaid rules themselves are complicated and difficult to understand. However, for a single person it is safe to say that you will qualify for Medicaid if you only have the above listed exempt assets and less than $2000.00. Because few people only have exempt assets and minimal cash it is crucial to seek assistance from an experienced Medicaid planner to avoid Medicaid penalties or the denial of benefits.