Understanding Medicaid Resource Requirements in Texas

May 7

2 min read

To qualify for Medicaid, applicants must meet specific resource limits. This is the third major requirement, following medical necessity and income limits. Many people worry about exceeding resource limits, but understanding countable vs. non-countable assets can help navigate Medicaid eligibility.

Medicaid Resource Limits: What You Need to Know

1. Single Applicant Resource Limit

If an individual is single, they can have only $2,000 in countable resources. However, there are non-countable resources, such as a primary residence, that do not affect Medicaid eligibility.

2. Institutionalized Spouse and Community Spouse Limits

When one spouse requires Medicaid-covered nursing home care while the other remains in the community, Medicaid applies different resource rules:

The institutionalized spouse may have up to $2,000 to $3,000 in countable resources.
The community spouse may keep a portion of the couple’s assets under the Spousal Protection Resource Allowance (SPRA).

3. Spousal Protection Resource Allowance (SPRA)

The community spouse is entitled to keep a minimum of $24,720 (as of 2018). If a couple’s total assets exceed this, the amount between $24,720 and $123,600 must be split 50/50 between the institutionalized spouse and the community spouse.

Understanding Countable vs. Non-Countable Resources

Some assets count toward the Medicaid limit, while others do not. Common non-countable resources include:

Primary home (if a spouse or dependent resides there)
Personal belongings (clothing, jewelry, furniture)
One vehicle
Prepaid funeral plans

Planning Strategies for Medicaid Eligibility

Given the complexity of Medicaid resource rules, elder law attorneys use legal strategies to protect assets while maintaining eligibility. These may include:

Spending down assets on exempt items (e.g., home modifications, medical expenses)
Using Medicaid-compliant annuities
Establishing trusts to safeguard assets