Delaware Medicaid (Diamond State Health Plan) Eligibility for Long Term Care: Income & Asset Limits

Last updated: July 20, 2018

Delaware Medicaid Definition

Medicaid in Delaware is a managed care program and is called the Diamond State Health Plan (DSHP), and long-term care Medicaid in Delaware is referred to as Diamond State Health Plan Plus (DSHP Plus). The Delaware Division of Medicaid & Medical Assistance (DMMA) administers the Medicaid program in Delaware.

Medicaid is a wide-ranging health insurance program for low-income individuals of all ages. Jointly funded by the state and federal government, it provides health coverage for various groups of Delaware residents, including pregnant women, parents and caretaker relatives, adults with no dependent children, disabled individuals, and seniors. However, the focus of this page is solely on Medicaid eligibility for Delaware elders, aged 65 and over, and specifically for long term care, whether that be at home, in an adult foster care home, in a nursing home, or in an assisted living facility.

  The American Council on Aging now offers a free, quick and easy Medicaid eligibility test for seniors.

 

Income & Asset Limits for Eligibility

There are several different Medicaid long-term care programs for which Delaware seniors may be eligible. These programs have slightly different financial and functional (level of care need) eligibility requirements, as well as varying benefits. Further complicating eligibility are the facts that the requirements vary with marital status and that Delaware offers multiple pathways towards Medicaid eligibility.

1) Institutional / Nursing Home Medicaid – this is an entitlement program. This means anyone who meets the eligibility requirements will receive assistance, which is provided only in nursing home facilities.
2) Medicaid Waivers / Home and Community Based Services (HCBS) – with these programs, there are a limited number of participant enrollment slots. Therefore, wait lists may exist. Benefits are provided at home, adult day care, an adult foster care home, or in assisted living.
3) Regular Medicaid / Aged and Disabled – this is an entitlement program, which means meeting the eligibility requirements guarantee assistance will be provided. Benefits are provided at home or adult day care.

The table below provides a quick reference to allow seniors to determine if they are immediately eligible for long term care from an Delaware Medicaid program. Alternatively, take the Medicaid Eligibility TestIMPORTANT, not meeting all the criteria below does not mean one is not eligible or cannot become eligible. More.

2018 Delaware Medicaid Long Term Care Eligibility for Seniors
Type of Medicaid Single Married (both spouses applying) Married (one spouse applying)
Income Limit Asset Limit Level of Care Required Income Limit Asset Limit Level of Care Required Income Limit Asset Limit Level of Care Required
Institutional / Nursing Home Medicaid $1,875 / month $2,000 Nursing Home $2,812.50 / month $3,000 Nursing Home $1,875 / month for applicant $2,000 for applicant & $123,600 for non-applicant Nursing Home
Medicaid Waivers / Home and Community Based Services $1,875 / month $2,000 Nursing Home $2,812.50 / month $3,000 Nursing Home $1,875 / month $2,000 for applicant & $123,600 for non-applicant Nursing Home
Regular Medicaid / Aged Blind and Disabled $1,875 / month $2,000 None $2,812.50 / month $3,000 None $1,875 / month $2,000 None
What Defines “Income”

For Medicaid eligibility purposes, any income that a Medicaid applicant receives is counted. To clarify, this income can come from any source. Examples include employment wages, alimony payments, Veteran’s benefits, pension payments, Social Security Disability Income, Social Security Income, Supplemental Security Income, IRA withdrawals, and stock dividends. However, when only one spouse of a married couple is applying for Medicaid, only the income of the applicant is counted. Said another way, the income of the non-applicant spouse is disregarded.

For married couples with non-applicant spouses with insufficient income in which to live, there is a Minimum Monthly Maintenance Needs Allowance (MMMNA). The MMMNA is intended to ensure non-applicant spouses do not become impoverished. Basically, if the non-applicant spouse, also called a community spouse, well spouse, or non-recipient spouse, has income under $2,057.50 / month, as of 7/1/18 (this figure changes each year in July), he or she is entitled to a portion of the applicant spouse’s income. If the well spouse has income equivalent to $2,057.50 / month or income in excess of this amount, one might be entitled to a greater monthly income allowance based on one’s shelter and utility costs. As of 1/1/18, the maximum monthly maintenance needs allowance a community spouse can receive is $3,090 / month. (This figure is set to change 1/1/19).

 

What Defines “Assets”

Countable assets, also called resources, include cash, stocks, bonds, investments, annuities, credit union, savings, and checking accounts, and real estate in which one does not reside. However, for Medicaid eligibility, there are many assets that are not counted. In other words, they are exempt from the asset limit. Exemptions include personal belongings, such as clothing, household furnishings, an automobile, up to $1,500 for burial, an irrevocable funeral trust (limited to $15,000 in 2018), and life insurance with a combined face value of $1,500. In addition, one’s primary home, given the Medicaid applicant lives in the home (or has the intent to return to it), or has a spouse who lives in the home, is exempt as long as the equity value is under $572,000 (in 2018).

For married couples, as of 2018, the community spouse can retain half of the couples’ joint assets (up to a maximum of $123,600), as the chart indicates above. If the non-applicant spouse’s half of resources is under $25,000, a portion of the applicant spouse’s resources can be taken to bring the non-applicant spouse’s resources to $25,000.This is referred to as the Community Spouse Resource Allowance (CSRA) and is intended to prevent the non-applicant spouse from becoming impoverished.

It is vital that one does not give away assets or sell them for less than fair market value in an attempt to meet Medicaid’s asset limit. This is because Delaware has a Medicaid Look-Back Period, which is a period of 60 months (5 years) that backdates from one’s Medicaid application date. During this time frame, Medicaid checks all past transfers to ensure no assets were sold or given away for less than they are worth. If one is found to be in violation of the look-back period, one will be penalized with a period of Medicaid ineligibility.

 

Qualifying When Over the Limits

For Delaware elderly residents (65 and over) who do not meet the eligibility requirements in the table above, there are other ways to qualify for Medicaid.

1) Qualified Income Trusts (QIT’s) – QIT’s, also referred to as Miller Trusts, are for Medicaid applicants who are over the income limit, yet still cannot afford the cost of their long-term care. This type of trust offers a way for individuals over the Medicaid income limit to still qualify for long-term care Medicaid, as money deposited into a QIT does not count towards Medicaid’s income limit. In simple terms, one’s excess income (over the Medicaid limit) is directly deposited into a trust, in which a trustee is named, giving that individual legal control of the money. The account must be irreversible, meaning once it has been established, it cannot be changed or canceled, and upon death of the Medicaid participant, any remaining funds must be paid to the state of Delaware. In addition, the money in the account can only be used for very specific purposes, such as paying long term care services / medical expenses accrued by the Medicaid enrollee.

Unfortunately, Miller Trusts are not helpful if one has assets over the Medicaid eligibility limit. Said another way, if one meets the income requirements for Medicaid eligibility, but not the asset requirement, the above option cannot assist one in reducing their extra assets. However, one can “spend down” assets by spending excess assets on non-countable assets, such as home modifications (wheelchair ramps, roll-in showers, and stair lifts), vehicle modifications (wheelchair lifts, adaptive control devices, and floor modifications to allow one to drive from a wheelchair), prepaying funeral and burial expenses, and paying off debt.

2) Medicaid Planning – the majority of persons considering Medicaid are “over-income” or “over-asset” or both, but still cannot afford their cost of care.  For persons in this situation, Medicaid planning exists. By working with a Medicaid planning professional, families can employ a variety of strategies to help them become Medicaid eligible. Read more or connect with a Medicaid planner.

 

Specific Delaware Medicaid Programs

Diamond State Health Plan Plus (DSHP-Plus) – this managed care program provides supportive services to program participants living at home, in assisted living, adult foster care, and nursing homes. Benefits may include adult day care, home health services, meal delivery, private duty nursing, home modifications, respite care, and more. Self-direction of personal care assistance is an option for those living outside of a residential facility.

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