What Is the Medicaid Income Cap?

In order to qualify for Medicaid, a nursing home resident's income must not be above a certain level. Most states allow individuals to spend down their excess income on their care until they reach the state's income standard. But other states impose an "income cap," which means no spend-down is allowed.

In "income cap" states, a nursing home resident won't be eligible for Medicaid if the resident's income exceeds $2,829 a month (in 2024), unless the excess income above this amount is paid into a special trust, called a "Miller" trust or a "Qualified Income Trust (QIT)."

The income cap states as of this writing are: Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, and Wyoming.

Learn more about how Medicaid treats income. Consider working closely with an elder law attorney to assist you in Medicaid planning. Find a qualified elder law attorney near you today.