Do you have too many assets to qualify for Medicaid? Learn what counts as an asset, what's exempt, and how asset rules differ for seniors vs. working-age adults.
Medicaid Asset Limits in 2025
Whether Medicaid counts your assets — savings, property, investments — depends on your age and which Medicaid program you're applying for.
The Good News for Most Adults
If you're applying for standard Medicaid as a working-age adult (under 65), most states no longer have asset limits. Following the Affordable Care Act, Medicaid eligibility for non-elderly adults shifted to an income-only test using Modified Adjusted Gross Income (MAGI). This means your savings account, car, or home typically don't count against you.
This applies in all 40+ expansion states and most non-expansion states for the standard adult Medicaid program.
Asset Limits Still Apply For:
Elderly and disabled Medicaid (SSI-related):
For seniors 65+ and people with disabilities applying for long-term care Medicaid or SSI-related Medicaid, asset limits still apply. These are typically:
- Individual: $2,000 in countable assets
- Married couple: $3,000 in countable assets (for the applicant spouse)
Long-term care Medicaid:
This is the most restrictive category. If you're applying for Medicaid to pay for a nursing home, the asset limits are strictly enforced and involve detailed review of your financial history (look-back period of 60 months).
What Counts as a Countable Asset?
Countable assets typically include:
- Cash and savings accounts
- Checking accounts
- Stocks, bonds, and mutual funds
- Second vehicles
- Vacation homes or rental properties
- Life insurance with cash value over $1,500
What Is Exempt (Not Counted)?
Exempt assets typically include:
- Your primary home (if you live in it or intend to return)
- One vehicle (your primary car)
- Household goods and personal belongings
- Burial plots and prepaid funeral expenses (up to certain limits)
- Life insurance with cash value under $1,500
- Retirement accounts (IRAs, 401ks) — varies by state
The Medicaid Look-Back Period
For long-term care Medicaid, states look back 60 months (5 years) at asset transfers. If you gave away assets or sold them below market value during this period, you may face a penalty period during which Medicaid won't pay for nursing home care.
This does not apply to standard Medicaid for working-age adults.
Medicaid Planning
For seniors concerned about asset limits and long-term care, "Medicaid planning" is a legitimate strategy — working with an elder law attorney to structure assets in a way that preserves eligibility. This is legal and widely used.
The Bottom Line
If you're a working-age adult applying for standard Medicaid, asset limits likely don't apply to you — income is what matters. If you're a senior or applying for long-term care, asset rules are more complex and may require professional guidance.