Asset Requirements

Asset Limits

Medicaid is a means-based program, meaning it employs strict financial criteria when determining whether an applicant is eligible. In most states, the person residing in the nursing home can keep up to $2,000 in countable assets. If they're married, the spouse living at home can keep up to $157,920 in 2025.

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Exempt vs. Countable Assets

Medicaid separates an individual's assets between exempt and countable. While countable assets count toward the asset limitations, exempt assets do not. Here are some of the most common countable and exempt assets.

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Exempt Assets

  • Your home
  • One vehicle
  • Personal property and household items
  • Funeral expense trusts of $15,000 or less (in most states)
  • Life insurance policies below $1,500 (in most states)

Countable Assets

  • Most annuities
  • Cash and bank accounts
  • Investments, stocks, and bonds
  • Additional homes, vehicles, and land
  • Life insurance policies exceeding $1,500 (in most states)
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What About Retirement Accounts?

In most states, retirement accounts are considered a countable asset for Medicaid purposes. However, some states exempt retirement accounts owned by the healthy spouse or either spouse. Your Medicaid planner will help you plan accordingly based on your state's rules.

Is Medicaid Planning Right For You?

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