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Eldercare Financial Planning

Life Resource Planners of the Treasure Coast 

Life Resource Planners of the Treasure Coast     1717 Indian River Blvd. Suite 301

Vero Beach FL 32960 
(772) 567-7970 ext. 101


​Florida Medicaid offers Long Term Care Healthcare to low income individuals who are disabled or over the age

of 65. There two major programs that are available. The First is known as "Institutional Care Program" or "ICP".

ICP provides funding for care that is provided in the Nursing Home. The second program is known as

"Home  and Community Based Waiver Programs" and is often referred to as 'Diversion' as the care is "diverted" away from the

Nursing Home and provided in the community, such as at home, Adult Daycare or an Assisted Living Facility.

In Florida, in order to be eligible to receive benefits from Medicaid, the applicant has to meet certain asset and

income levels. An Applicant is only allowed $2,000 of 'non-exempt assets' and a monthly gross income of $2,350.00 (2020). A spouse is entitled to     keep an additional $128,640 (2020) of 'non-exempt assets'. Here is a  partial list of both Exempt and Non-Exempt or 'Countable' Assets:

Exempt Assets:

Exempt assets are those that Medicaid will not include in the asset total to determine eligibility. In Florida, the following are the primary exempt assets:

  • Home Place: The applicant’s house and all adjoining land and all buildings on the property are excluded from resources if the equity value of the home is $595,000​   (2020) or less.
  • Household Goods: Household items including furniture, decorations, art, and appliances are excluded.
  • Life Insurance with a face value (death benefit) of $2,500 or less
  • Burial  Funds and Prepaid Funeral Contracts - In an irrevocable burial contract, the full value is excluded regardless of the amount. There is also a $2,500 exclusion of funds designated for burial expenses. A new bank account (e.g. John Smith Burial Account) may be established for this purpose. In addition, one burial plot is permitted for each family member. Burial plots for the applicant and immediate family are excluded as well as certain other items at the burial site. There is no        dollar limit on the cost or value of the burial space items.
  • Automobiles: One automobile is excluded regardless of value and whether or not it is in use. Note that junked or recreational vehicles are counted as resources.
  • Personal Items: Personal items such as clothing and jewelry are excluded.
  • Retirement Funds: Retirement funds such as IRAs, 401(k)s, and pensions are excludable resources if they are being distributed in periodic payments that include a portion of principal. These payments are counted as income in the month received. State of Florida uses the Social Security Life Expectancy Table for determining the appropriate 'Periodic Payment'
  • Rental Real Estate. The rent is counted as income to the applicant the month that it is received.
  • Non‐marketable Assets: Assets are excluded while the applicant is making a bona fide effort to sell the asset. A bona fide effort may be evidenced by an advertisement in the newspaper or a listing with a real estate agent. The property must be listed for no more than its current value, and the applicant must accept an offer if it is at least 2/3 of the current value.

Countable (Non Exempt) Assets:

Basically, all money and property and any item that can be valued and turned into cash, is a countable asset unless it is one of those assets listed     above as exempt. This includes the following:

  • Life Insurance Policies: The cash value of whole life or other life insurance policies is counted as a resource if the burial exclusion maximum has been reached with other assets.
  • Investments: Stocks, bonds, mutual funds
  • Checking Accounts
  • Savings Accounts
  • Certificates of Deposit
  • Money Market Accounts

While the Medicaid rules themselves are complicated and tricky, for a single person it is safe to say that he or she will qualify for Medicaid so long as     the total assets are either exempt and/or are less than $2,000- 

Important Medicaid Numbers (2020):

Income Cap $2,350
Individual Resource Allowance $2,000.00
Monthly Personal Needs Allowance $130.00
Community Spouse Resource Allowance $128,640.00
Minimum Monthly Maintenance Needs Allowance $2,114.00
Maximum Monthly Maintenance Needs Allowance $3,217.00
Shelter Standard $634.00
Standard Utility Allowance $361.00 
Resource Allowance for a Couple (Husband and Wife both reside in a facility) $3,000.00

Divestment Penalty Divisor $9,485.00 (7/1/2019)
Last Updated March 2020