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What Is the Medicaid Income Cap?

  • February 12th, 2018

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 $2,250 a month (for 2018), unless the excess income above this amount is paid into a special trust, called a "Miller" trust or a "Qualified Income Trust." 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 Mexico, New Jersey, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, and Wyoming.

Local Elder Law Attorneys in Ashburn, VA

William Fralin

The Estate Planning & Elder Law Firm PC
Bethesda, MD

Ron Landsman

Ron M. Landsman, P.A.
Rockville, MD

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Margaret A. O'Reilly, PC
Herndon, VA

To find out more about how Medicaid treats income, click here


Last Modified: 02/12/2018

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