If someone needs long-term care in a nursing home and is applying for MassHealth (Medicaid) to help pay for it, they need to show how much money and property they have. MassHealth looks closely at a person’s financial assets — but it doesn’t count their house if certain conditions are met.
This post will explain what assets do count, and how the rules work for single and married applicants.
Let’s break it down in a way that’s easy to understand.
What Are Financial Assets?
These are things you can easily turn into money, such as:
- Cash
- Checking or savings accounts
- Stocks or mutual funds
- Investment accounts or IRAs
- CDs (Certificates of Deposit)
- 401(k)s
- Annuities
If you can sell it or use it to pay for something, it usually counts as an asset.
If You’re Single
You can only have less than $2,000 in total countable assets to qualify for MassHealth long-term care.
Spend Down Rules
- If you have more than $2,000, you’ll need to spend that extra money, but you must:
- Spend the money on yourself only (not on gifts for others).
- Keep all receipts and paperwork showing how the money was used.
What About a Car?
If you own a vehicle, MassHealth may count it as an asset. You’ll usually need to:
- Sell it at fair market value (check on Kelley Blue Book or the excise tax bill).
- Use the money from the sale to pay for your care.
- MassHealth gives you 3 months to sell it, but you must sign an agreement saying you’ll do so.
If You’re Married
MassHealth lets you protect more assets by transferring some of them to your spouse.
How Much Can Be Transferred?
You can transfer up to $157,920 in assets to your spouse — this is called the Community Spouse Resource Allowance (CSRA).
Here’s how it works:
- If your total assets are under $157,920, you don’t need to spend anything down — just transfer everything to your spouse.
- If your total assets are over $157,920, the extra must be spent on your care needs.
Examples:
- Couple has $130,000 ➜ All can go to the spouse. You're eligible.
- Couple has $200,000 ➜ $157,920 can go to the spouse, but $42,080 must be spent on medical or care-related needs.
Vehicles for Married Couples
- You’re allowed one vehicle (any value) that won’t count.
- Any extra vehicles must be sold and the money used on care, just like with single applicants.
- You’ll also get 3 months to sell extra vehicles if you sign an agreement with MassHealth.
Ways to Spend Down the Extra Money
Here are smart, allowed ways to spend your assets and still qualify:
Burial Plans
- Burial Trust: An account for funeral costs that can’t be changed or canceled.
- Burial Savings Account: Up to $1,500 set aside for flowers, food, and other burial-related costs.
Personal Needs Purchases, You can buy items you’ll need in the nursing home:
- Hearing aids, glasses, dentures
- Walker, electric recliner, or wheelchair
- Clothing, TV, headphones
Tip: Keep your receipts, especially for big purchases!
Special Rules for a Blind or Disabled Child
If you have a child who is blind or permanently disabled, you can transfer your money to a Special Needs Trust (SNT) for them — without penalty.
This kind of trust:
- Must be for a child under age 65 with a qualifying disability
- Can be set up by a parent, grandparent, guardian, court, or the person themselves (if they’re mentally able)
- Must only benefit the disabled person
- Must include a Medicaid payback clause
- Doesn’t trigger a 5-year penalty — the money can be transferred right before applying
Final Thoughts
MassHealth has strict rules about how much money and what types of assets you can keep. But knowing the rules helps families plan ahead, protect what they can, and make smart choices about how to spend their money.
If you're helping a loved one apply for MassHealth, make sure to:
- Understand what counts
- Keep detailed records
- Spend money only in allowed ways
- Ask questions or get expert help if needed
Want to see what nursing homes in Massachusetts accept MassHealth and learn more? Visit ViewAllOptions.com to explore, compare, and choose with confidence.
