My mom is covered by Medicare/Medicaid. We need to sell her home. How will this affect Medicaid.

Q) My 94 year old mom is currently covered by Medicare/Medicaid. Due to her failing health she now lives in an assisted living home. Because of her limited monthly income of $711 from Social Security and $141.80 pension, money has been loaned to her over the past many years to help cover living expenses. We are now faced with paying back those loans so will need to sell her home place. The income from the sale of her home property will first be used to pay off those loans. If there is money remaining after loans are paid, I would expect that money to be used for her care so no further loans will be need to be made. How will Mom’s Medicaid coverage be affected by this ONE TIME additional income from the sale of her property? Thank you for your assistance.

A) I understand that you are concerned about how your mom’s Medicaid coverage will be affected by the sale of her property.

The good news is that the sale of your mom’s home will not automatically disqualify her from Medicaid. However, the proceeds from the sale of her home will be considered an asset, and this could affect her eligibility for Medicaid.

The amount of money that your mom has in assets will determine whether she is eligible for Medicaid. In most states, the asset limit for Medicaid is $2,000 for an individual and $3,000 for a couple. If your mom’s assets exceed these limits, she may not be eligible for Medicaid.

However, there is a special rule that allows people to keep their homes even if their assets exceed the limit. This rule is called the “homestead exemption.” The homestead exemption allows people to keep their homes up to a certain value, even if their assets exceed the limit.

The homestead exemption varies from state to state. In some states, the homestead exemption is very high, while in other states it is very low. You can contact your state’s Medicaid office to find out how much the homestead exemption is in your state.

If the proceeds from the sale of your mom’s home exceed the homestead exemption, she may still be able to keep her home and qualify for Medicaid. However, she will need to spend down the proceeds from the sale of her home to below the asset limit. This can be done by paying off debts, buying a smaller home, or giving the money away.

You should contact your state’s Medicaid office to discuss your mom’s specific situation and to find out how the sale of her home will affect her eligibility for Medicaid.