Kansas Medicaid (KanCare) Eligibility for Long Term Care: Income & Asset Limits

Last updated: July 04, 2018

Kansas Medicaid Definition

In Kansas, the Medicaid program is also called KanCare. The Kansas Department of Health and Environment (KDHE) is the agency that administers the state’s Medicaid program.

Medicaid is a wide-ranging, jointly funded state and federal health care program for low-income individuals of all ages. While there are several different eligibility groups, the focus of this page is strictly on Medicaid eligibility for elderly Kansas residents, aged 65 and over. In addition, the focal point will be specifically on Medicaid for long term care, whether that is at home, in a nursing home, in an adult foster care 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 Kansas seniors may be eligible. These programs have slightly different financial and medical (functional) eligibility requirements, as well as varying benefits. Further complicating eligibility are the facts that the criteria vary with marital status and that Kansas offers several pathways towards eligibility.

1) Institutional / Nursing Home Medicaid – this is an entitlement (anyone who is eligible will receive assistance) program & is provided only in nursing home facilities.
2) Medicaid Waivers / Home and Community Based Services (HCBS) – there are a limited number of participant slots, which means wait lists may exist. Services are provided at home, adult day care, an adult foster care home, or in assisted living.
3) Regular Medicaid / Aged Blind and Disabled (ABD) – this is an entitlement (anyone who meets the requirements is able to receive benefits) program. Services are available 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 Kansas 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 Kansas 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 No set income limit. Income over $62 / month must be paid towards one’s cost of care. $2,000 Nursing Home No set income limit. Income over $62 / month (per spouse) must be paid towards one’s cost of care. $2,000 (per spouse) Nursing Home No set income limit. Income over $62 / month must be paid towards one’s cost of care. $2,000 for applicant & $123,600 for non-applicant Nursing Home
Medicaid Waivers / Home and Community Based Services No set income limit. Income over $747 / month must be paid towards one’s cost of care. $2,000 Nursing Home No set income limit. Income over $747 / month (per spouse) must be paid towards one’s cost of care. $2,000 (per spouse) Nursing Home No set income limit. Income over $747 / month must be paid towards one’s cost of care. $2,000 for applicant & $123,600 for non-applicant Nursing Home
Regular Medicaid / Aged Blind and Disabled $495 / month $2,000 None $495 / month $3,000 None $495 / 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 cash from family and friends, Veteran’s benefits, Railroad Retirement benefits, employment wages, alimony payments, pension payments, annuity payments, Social Security Disability Income, Social 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. This is often referred to as the “name on the check rule” and means that the income belongs to the person whose name is on the check. Therefore, a non-applicant spouse’s income is disregarded. There is also a Minimum Monthly Maintenance Needs Allowance (MMMNA), which is the minimum amount of monthly income to which the non-applicant spouse is entitled. As of July 1, 2018, this figure is $2,057.50 / month and will increase again July 1, 2019. Based on shelter and utility costs, a community spouse may be entitled to a greater amount of monthly income, up to $3,090 / month. (This figure changes January 1st of each year). This rule allows the nursing home or home and community based services Medicaid applicant to transfer income to the non-applicant spouse to ensure he or she has sufficient funds with which to live.

 

What Defines “Assets”

Countable assets, sometimes called liquid assets, are those that can easily be converted to cash to help cover the cost of long-term care. Examples of countable assets include cash, stocks, bonds, investments, credit union, savings, and checking accounts, pension funds, and real estate in which one does not reside. However, for Medicaid eligibility, there are many assets that are considered exempt, or said another way, are not counted towards the asset limit. Exemptions include personal keepsakes and belongings, household goods and furnishings, one automobile, life insurance policies with a death benefit limited to $1,500, burial spaces, irrevocable burial plans, and one’s primary home, given the Medicaid applicant or their spouse lives in the home and the home is valued under $572,000 (in 2018). For married couples, as of 2018, the community spouse (the non-applicant spouse, also called the well spouse) can retain half of the couples’ joint assets, up to a maximum of $123,600, as the chart indicates above. That said, the community spouse is able to keep 100% of the assets up to $24,720. This, in Medicaid speak, is known as the Community Spouse Resource Allowance (CSRA).

One should be aware that Kansas has a Medicaid Look-Back Period. This is a period of 60 months (5 years) that backdates from one’s Medicaid application date. During this time frame, Medicaid checks all past asset transfers (including asset transfers made by one’s spouse) to ensure no assets were sold or given away under fair market value. This is done so one does not simply give away assets in order to meet Medicaid’s asset limit. If one is found to be in violation of the look-back period, a period of Medicaid ineligibility will result.

 

Qualifying When Over the Limits

For Kansas 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) Medically Needy Pathway – In Kansas, there is a Spend Down Program that is specifically intended for those that are categorically aged, blind or disabled that have income over the Medicaid limit. (As the chart indicates above, as of 2018, the income limit is $495 for a single applicant, as well as a married couple with both spouses applying for Medicaid). In a nutshell, one may still be eligible for Medicaid services even if they are over the income limit by paying their excess income (the income over the Medicaid income limit) on medical bills. Once one has met their “spend-down”, which can be thought of as a deductible, for the spend-down period, one will receive Medicaid benefits for the remainder of the spend-down period. (The spend-down period in Kansas is six months.)

Make note, the Spend Down Program does not assist one in spending down assets in excess of the asset limit for Medicaid qualification. Said another way, if one meets the income requirements for Medicaid eligibility, but not the asset requirement, the above pathway of action cannot assist one in “spending down” extra assets.

However, one can “spend down” assets by spending excess assets on non-countable assets, such as home modifications for safety and accessibility purposes. Examples include the addition of wheelchair ramps, stair lifts, walk-in showers, and the addition of a first floor bedroom. Other ways to “spend down” excess assets include prepaying funeral and burial expenses, as well as paying off debt. As mentioned above, when spending down assets, it’s important that one does not give away assets or sell them way under market value. Doing so can result in a penalty period of Medicaid ineligibility.

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 Kansas Medicaid Programs

In addition to nursing home care, KanCare offers a program that helps nursing home qualified persons remain living outside of nursing homes. This is called the HCBS Frail and Elderly (HCBS/FE) Waiver. Intended as a nursing home diversion program for Kansas seniors who require a nursing home level of care, supportive services to promote independent living are provided. Benefits may include adult day care, assisted living services, home modifications, durable medical equipment, and more.

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