Q & A's : Minnesota Medical Assistance

For many people at or over retirement age, the thought of needing nursing facility care is overwhelming and down right scary.  Much of the negative emotion and fear come from a lack of information and understanding of the process as well as improper planning.  Below are a few commonly-asked questions and answers to make things a little less fuzzy:

Question 1:  What is Medical Assistance and what does it cover?

Medical Assistance is Minnesota’s Medicaid program and serves as a public benefit available to elderly and disabled Minnesotans who meet certain asset and income limits.  Medical Assistance covers long term care for recipients who live in a nursing home and may also be available to people who are able to stay in their homes with assistance, or individuals who live in an assisted living facility. 

Question 2:  Will I be eligible for Medicaid/Medical Assistance Benefits?

If you are single, in order to be eligible for Medicaid benefits (called Medical Assistance in Minnesota), you may have no more than $3,000.00 in assets.  This includes savings accounts, checking accounts, stocks and bonds, certificates of deposit, contracts for deed, IRAs, life insurance policies (cash surrender values), among other things..  

In the situation of the married couple, the income of the recipient of care is treated as if they were single. The main difference is assets are evaluated much differently to allow the community spouse (spouse of a nursing home resident) to keep assets up to a set limit. Due to changes in cost of living, there is a minimum and a maximum asset limit set each year for the community spouse.  In addition, with a community spouse, some assets are considered exempt, see question 3 below.  

Please be aware, if both spouses were to go into the nursing home at the same time, in order to receive Medical Assistance benefits (or in essence have the state pick up your nursing home bill), both spouses would each need to have assets no greater than $3,000.00, including exempt assets.

Question 3:  What qualifies as an exempt asset?

Exempt assets of a married couple include the following: personal possessions such as clothing, furniture, jewelry; one motor vehicle; applicant’s principal residence, provided it is in the same state in which the individual is applying for coverage and its equity does not exceed $500,000; prepaid funeral expenses (certain limits may apply); and assets that are considered inaccessible for one reason or another. 

Medical Assistance is very complex, always consult your attorney with questions you may have.