South Jersey's Trial Firm
Jacob Law Group, LLC
856-825-0700 | 800-303-0701

 Write a Review

600 West Main Street, Millville, NJ 08332

All Articles   Back to Medicaid Planning

Preventing spousal impoverishment when only one spouse needs Medicaid.

  Frederick Jacob - April 22, 2018

It’s no secret. In New Jersey long term care is very expensive and Medicare and health insurance plans do not cover the expense. If you don't have the financial means to pay for long term care you’re left with Medicaid.

But what happens when only one spouse has a medical condition severe enough that he or she requires special nursing care while the other is healthy?

Fortuntely, Congress passed the Medicare Catastrophic Act of 1988 which recognizes that it’s unfair to impoverish both spouses when only one of them needs to qualify for Medicaid. The outcome of this act created what is called “division of assets”. In a nutshell the couple has to gather all their countable assets (some assets are exempt) for a review by the state. The assets are divided in half, allowing the healthy spouse who will be staying at home to keep one half of the countable assets (aka: Community Spouse Resource Allowance - CSRA) to a maximum of nearly $120,000.

The other half must be spent down to $2,000. New Jersey will then establish what’s called the Minimum Monthly Maintenance Needs Allowance (MMMNA) for the healthy spouse who stays at home. This allowance lets the at-home spouse keep a monthly income between  $2,000-$3,000. However, if the healthy, at-home spouse has a monthly income falling below this range, he or she is allowed to receive any monthly income that would normally go to the long term care spouse until the MMMNA is reached. The difference that’s left over goes to the nursing home. 

As an attorney specializing in Elder Law and Asset Protection Planning I can help your spouse qualify for Medicaid while also making sure you do not fall victim to spousal impoverishment. There are creative ways to reduce your spouse’s half of the countable assets that will benefit you. Please take the time to contact me if this article pertains to your situation or pass my contact information along to someone you know who is struggling with this challenge.

SEO keywords: qualify for medicaid, medicaid planning, Millville Vineland Bridgeton New Jersey

Send a Message to Fred...

For over 40 years I've helped many people throughout the South Jersey area successfully resolve their legal challenges. Feel free to contact me about your unique situation using the form below or simply call the office to schedule a consultation. Please keep your message brief and we will discuss the details over the phone or in person. Thank you.

  • Name:  
  • Email:  
  • Your Message:  

  • To reduce spam enter 3B2K into the field below. Letters are case sensitive.