Medicaid Figures for 2024
Every January, the Michigan Department of Health and Human Services (MDHHS) releases updated figures for Medicaid qualification. Occasionally, there are not any increases in the Medicaid figures just as in some years there is not a cost of living increase for Social Security benefits. For 2024, just as Social Security recipients received a cost of living adjustment, MDHHS has also increased its Medicaid figures.
The maximum spousal share is the maximum amount of countable assets the at-home spouse is allowed to keep. For 2023, the amount was $148,620. For 2024, the maximum spousal share is increased to $154,140. This means that if a married couple has $308,280 or more in countable assets, the at-home spouse is now able to keep $154,140. There also is a minimum spousal share which has been increased for 2024 to $30,828. In other words, if a married couple has $61,656 or less in countable assets, the at-home spouse is able to keep $30,828.
The Medicaid rules also allow for a Minimum Monthly Maintenance Needs Allowance. This is the minimum amount of income the at-home spouse is allowed. For 2023, the minimum allowance the at-home spouse was allowed was $2,288.75. Beginning January 2024, the Minimum Monthly Maintenance Needs Allowance is $2,465.
There is also a Maximum Monthly Maintenance Needs Allowance. This is the amount of income that the community spouse is allowed to keep if his or her home related expenses are high enough. In 2024, the Maximum Monthly Maintenance Needs Allowance for the community spouse is increased from $3,715.00 to $3,853.50.
For 2024, the limit on irrevocable funeral contracts remains at $14,720 although this figure is often increased later in the year. Also, the amount a person can assign for funeral expenses under a life insurance policy has not yet been increased for 2024 and remains at $12,720.
Finally, MDHHS will apply a penalty to any gifts made within 5 years of the filing of a Medicaid application. In 2023, the penalty divisor was $9,939. For 2024, the penalty divisor has been increased to $10,870. For example, suppose Betsy Smith gives a total of $15,000 to her church over a 5 year period. If she should later require nursing home care, she would be penalized from receiving Medicaid benefits for 1.38 months (15,000/10,870 = 1.38).
2024 promises to be an interesting year as we wait to see what new Medicaid rules will be adopted. As always, stay tuned for further updates as they occur.
This blog post is written by Brett A. Howell, Certified Elder Law Attorney. The blog is written as a service of The Elder and Estate Planning Law Firm, P.L.L.C. This information is for general informational purposes only and does not constitute legal advice. For a consultation to address specific questions, please call (810) 953-3846.
