Medicaid’s Community Spouse Resource Allowance (CSRA): Calculations & Limits

Last updated: January 05, 2021

 

Definitions

To better understand the Medicaid Community Spouse Resource Allowance (CSRA), it is important to understand the terminology associated with it.

  • Community Spouse – the spouse who is not applying for long-term care Medicaid, also commonly called the non-applicant spouse, healthy spouse, or well spouse.
  • Institutionalized Spouse – the applicant spouse, sometimes called the nursing home spouse. The term, “institutionalized” is misleading as the CSRA isn’t only for married couples with one spouse seeking nursing home care. It is also for married couples with one spouse applying for long-term care services in their home or community via a Medicaid waiver.
  • Resources – commonly called assets. For Medicaid purposes, there are both countable (non-exempt) and non-countable (exempt) resources. Learn which assets are counted towards the asset limit and which are not below under “Which Resources are Countable”.

 

What is the Community Spouse Resource Allowance?

When one spouse of a married couple applies for Medicaid long-term care, federal spousal impoverishment rules prevent the non-applicant spouse from having too little income and resources on which to live. Because Medicaid is for persons with very limited resources and income, a married couple might end up in the situation where one spouse enters a nursing home and the other spouse has no money on which to live.

When an elderly individual applies for Medicaid, there is an asset requirement that must be met. This means the applicant is limited to a certain amount of assets, which may vary based on state. However, generally speaking, as of 2021, the asset limit for a married senior applicant is $2,000. Assets of a husband and wife are considered jointly owned, and a greater portion of the assets can be allocated to the non-applicant spouse. The assets the non-applicant spouse is permitted to retain is referred to as the Community Spouse Resource Allowance (CSRA).

A similar rule exists for income. This is called the Minimum Monthly Maintenance Needs Allowance (MMMNA). The MMMNA allows applicant spouses to transfer a portion of their income to their non-applicant spouses. For the purposes of this article, the focus will be on the Community Spouse Resource Allowance and protecting joint assets for the non-applicant spouse.

Your request has been received. You’ll be contacted within one business day.
Would you like to speak with an advisor about how to maximize the Community Spouse Resource Allowance while qualifying a spouse for Medicaid?
By submitting this form, you agree to our Privacy PolicyTerms of Use, and Agreement to be Contacted by Telephone.

 

Minimum and Maximum Resource Allowance Amounts

The resource allowance is the amount of assets to which non-applicant spouses are entitled. There is a minimum resource standard and a maximum resource standard. As of 2021, the minimum resource standard is $26,076 and the maximum resource standard is $130,380. These standards are set by the federal government, but states are permitted to set their own standards within these parameters.

Some states have a maximum resource limit under the federally set standard of $130,380. For instance, as of 2021, South Carolina limits their maximum resource allowance to $66,480, and Illinois sets their limit at $109,560.  To see state specific community spouse resource allowance figures, click here.

 

Which Resources are Countable?

Not all of a couple’s assets or resources are counted when calculating the Community Spouse Resource Allowance. There are Countable (Non-Exempt) assets and Non-Countable (Exempt) assets.

Countable (Non-Exempt) Assets
Countable assets are generally considered liquid assets, which are assets that can easily be converted to cash and be used to pay for long-term care. Examples include cash, certificates of deposit, stocks, bonds, and vacation properties.

Non-Countable (Exempt) Assets
Several assets are considered exempt and are not factored in when adding up a couple’s assets to calculate the CSRA. These include the couples’ primary home, given the non-applicant spouse lives in the home, household furniture and appliances, clothing, an automobile, irrevocable (it cannot be changed or cancelled) funeral and burial trusts, and life insurance policies with a total face value under a certain amount (generally $1,500).

 In some states, IRAs and 401ks are exempt assets, while in other states, they are non-exempt. Learn more

 

How to Calculate the Community Spouse Resource Allowance?

Generally, the applicant spouse’s first day of institutionalization (with a minimum of a 30-day stay), or the date he / she qualifies for a Medicaid waiver, is referred to as the “snap shot” day. On this day, all countable assets are added up, regardless of whose name is on the resources, as they are all considered jointly owned. The calculated figure is then divided by two, with half of the assets considered owned by the applicant and the other half owned by the community spouse. The community spouse can retain half of the assets up to the maximum resource standard, which as of 2021, is $130,380 for the majority of the states. The minimum resource allowance is intended to protect those couples that have very limited resources. As mentioned previously, this figure is $26,076 in 2021. The community spouse is entitled to keep up to $26,076 of the couples’ assets even if the amount is greater than 50% of the total assets.

In some states, called 100% states, community spouses are entitled to 100% of the couple’s assets up to the maximum resource allowance for their state.

Remember, the applicant spouse is generally only able to retain $2,000 in assets. An example of what happens if the applicant spouse’s portion of assets is over $2,000 follows.

A married couple has $250,000 in countable assets. This means $125,000 is considered owned by the applicant spouse and the other $125,000 owned by the non-applicant spouse. Since the non-applicant spouse’s half is less than the maximum CSRA of $130,380, he / she is able to keep the entirety of his / her half. However, with the applicant spouse’s half of the assets, $125,000, he / she is $123,000 over Medicaid’s $2,000 asset limit. Therefore, he / she is asset ineligible and must “spend down” the extra $123,000 to meet the $2,000 asset limit.

In a 100% state, the non-applicant spouse can keep $130,380 of the couple’s $250,000 in assets. This leaves $119,620 that is considered owned by the applicant spouse. Since the applicant spouse is only allowed $2,000 in assets, he / she must “spend down” the remaining $117,620 to become asset eligible.

  Again, it is worth noting that, in most cases, primary homes are exempt from being counted towards the asset limit provided they are lived in by one of the spouses.
Medicaid 50% and 100% States for CSRA – Updated Aug. 2021
50% States 100% States
Alabama
Arizona
Arkansas
Connecticut
Delaware
Idaho
Indiana
Iowa
Kansas
Kentucky
Maryland
Massachusetts
Michigan
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Dakota
Tennessee
Texas
Utah
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Alaska
California
Colorado
Florida
Georgia
Hawaii
Illinois
Louisiana
Maine
Minnesota
Mississippi
South Carolina
Vermont
Wyoming

Asset Spend Down

For those who are over the asset limit after taking the CSRA into account, assets will have to be “spent down” to meet the Medicaid asset limit. One might spend down assets by converting countable assets into non-countable assets. Examples include making home improvements and modifications (updating heating and plumbing systems, adding a first floor bedroom, installing a chair lift, etc.), paying off debt (mortgage, credit cards, medical bills), and prepaying funeral and burial expenses. One can also turn countable assets in an income stream via a Medicaid compliant annuity. To learn more about asset “spend down”, click here.

 Use our Medicaid Spend Down Calculator to determine your spend down amount.

 

Seek the Advice of a Professional Medicaid Planner

Medicaid eligibility can be complicated, particularly if one is over the asset limit. When spending down assets, one needs to be cautious. Giving away assets or selling them under fair market value can violate Medicaid’s look back period, and one can be penalized with a period of Medicaid ineligibility. If one is over the asset limit, it is highly advisable the counsel of a professional Medicaid planner is sought.

Determine Your Medicaid Eligibility

Get Help Qualifying for Medicaid