The End of the $2000 Medicaid Asset Limit

A caregiver is kneeling next to his elderly patient outside a nursing home.

For longer than I have been practicing law - over 30 years now - the countable asset limit for a single individual seeking Medicaid nursing home benefits or MI Choice Waiver benefits was $2000.00. Last year, to the surprise of many (including me), the Michigan Department of Health and Human Services increased the $2000.00 asset limit to $9660.00. Because this asset limit is adjusted annually for inflation, for 2026, the new amount is $9950.00. Unfortunately, many people are still unaware of this change. For a married couple, the new amount for 2026 is $14,910.00. The spousal protection rules continue to apply when there is a community spouse. Here are the 2026 limits under the Bridges Eligibility Manual:

For an asset group of one:

• $9,950 effective January 1, 2026.

• $9,660 effective January 1, 2025.

• $9,430 effective January 1, 2024.

• $9,090 effective January 1, 2023.

• $8,400 effective January 1, 2022.

This new limit with the annual inflation adjustment is a welcome change. It has already helped many single nursing home residents qualify for Medicaid and also have additional resources to pay their expenses such as for a home or car. Previously, having only $2000.00 was simply not enough to pay their homeowners insurance, property taxes, utilities and other expenses without having to rely almost exclusively upon their children.

It is rare that the Medicaid rules are changed to benefit Medicaid recipients. As always, stay tuned for further updates.

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.