Can I Get MassHealth if I Own Things? MA Asset Rules Explained

(updated for 2025)

**community spouse: the spouse of an individual who is receiving Medicaid-funded long-term care in an institution (like a nursing home) and who does not live in the same institution

Good to know: Most everyday possessions—your clothes, furniture, one car, and usually your primary home—are treated as non‑countable (exempt) and do not reduce your eligibility.

Why does MassHealth look at assets?

MassHealth, Massachusetts’ Medicaid program, is financed jointly by the state and federal governments. Because it pays large long‑term‑care bills, the program has a “means test.” Income is one part, assets are the other. The asset test stops people with substantial resources from shifting the cost of nursing‑home care to taxpayers.

What counts as an “asset”?

Think of assets as anything you own and could turn into cash—bank accounts, stocks, bonds, second homes, non‑retirement real estate, certain life‑insurance cash values, cryptocurrency, vacation trailers, etc. If MassHealth decides an item is countable, its fair‑market value (what you could reasonably sell it for) is added to your total.

What is the 2025 MassHealth asset limit?

For single applicants requesting long‑term‑care coverage (or the Frail Elder / Adult Waiver):

• $2,000 in countable assets.
  Example: If your checking + savings total $1,800 and you own no other countable property, you meet the test.
  

For married couples when only one spouse needs care:

• Applicants are still limited to $2,000.
  
• Community spouse may keep 50 % of the couple’s combined countable assets up to $157,920 and never less than $31,584. 
  

Is my primary home countable?

Generally no, as long as at least one of the following applies: 

1. You intend to return home (even if unlikely).
   
2. Your spouse, minor, or disabled child lives there.
   
3. Your equity interest is under $1,097,000 (2025 cap).
   

Tip: If you move out permanently and no exempt relative remains, MassHealth may place a lien or require a sale later. Speak with an elder‑law attorney before transferring the title.

Are my car and household items counted?

• One vehicle of any value is exempt.
  
• Personal belongings and household furniture/appliances are exempt.
  

What about retirement accounts and life insurance?

Asset type	Countable?
Traditional / Roth IRA, 401(k)	Usually countable if the owner can withdraw funds freely. If the account is in “payment status” (IRAs annuitized to a periodic payment) MassHealth treats only each month’s payment as income, not as an asset.
Employer pension	The monthly payment is income; there is no countable asset.
Whole‐life or universal life insurance	Countable cash‑surrender value if the face amount exceeds $1,500. Policies ≤ $1,500 face amount are exempt.
Term life	Not countable (no cash value).

How does the Community Spouse Resource Allowance (CSRA) work?

MassHealth totals all countable assets owned by either spouse on the “snapshot date” (the first day one spouse entered a nursing facility for 30+ consecutive days). The community spouse may keep half, capped at $157,920. If half is below $31,584, they may keep the minimum.

Example: A couple holds $120,000 in countable assets. Half is $60,000—below the cap but above the floor—so the spouse at home keeps $60,000; the applicant must spend down to $2,000.

What assets are always exempt?

• Primary residence (subject to equity cap or exempt relative).
  
• One motor vehicle.
  
• Personal belongings, household furniture.
  
• Burial account up to $1,500 or an irrevocable prepaid funeral.
  
• Burial spaces and markers for immediate family.
  
• Certain hard‑to‑sell property (actively trying to sell timeline).
  
• Retroactive Social Security / SSI payments for 9 months after receipt.
  

Does MassHealth look back at transfers and gifts?

Yes. When you apply for long‑term‑care coverage, MassHealth examines all asset transfers made in the 5 years (60 months) before the application date. Gifts for less than fair value trigger a penalty period—MassHealth will refuse to pay the nursing‑home bill for a set number of days calculated by dividing the gift’s value by the state’s average daily nursing‑home cost ($441 in 2025).

Example: Gifting $44,100 to a grandchild within the look‑back creates a 100‑day penalty ($44,100 ÷ $441). You or your family must privately pay during that time.

I’m over the limit—what are my options?

1. Spend‑down on exempt items
   Pay ahead for dental work, a more reliable vehicle, home repairs, prepaid funeral, or medical equipment.
   
2. Pay for care at the nursing facility until assets reach the limit.
   
3. Consult an elder‑law attorney about strategies such as:
   
   • Community‑spouse asset‑shift into an actuarially sound immediate annuity.
     
   • Pooled trust deposits for disabled individuals under 65.
     
   • Special‑needs or sole‑benefit trusts for a disabled child.
     
4. Irrevocable trusts & advance planning (must be created more than 5 years before applying to avoid the transfer penalty).
   

Do the same rules apply to HCBS waiver programs?

Yes—the standard $2,000 asset limit applies to the Frail Elder Waiver, Adult Supports Waiver, ABI Waiver, etc. Waiver applicants remain in the community, so the home is exempt; however, transfers are still subject to the 5‑year look‑back. Mass.gov

How often do asset figures change?

Most dollar limits adjust annually on January 1 to reflect federal inflation indexes. That includes the community‑spouse minimum/maximum and the home‑equity cap. The single‑applicant $2,000 cap has been flat for years, but increases are possible if federal rules change. Check MassHealth’s “Program Financial Guidelines” page every January for fresh numbers.

Key takeaways

• Owning assets doesn’t automatically disqualify you—only countable assets above the limit do.
  
• Your home, one car, personal belongings, and modest funeral set‑aside are normally safe.
  
• Married couples get special protection through the CSRA, letting the at‑home spouse keep up to $157,920 in 2025.
  
• Gifts within five years can trigger a coverage delay, so talk to a professional before transferring property.
  
• If you are over the limit, strategic spend‑down or trust planning can help you qualify without jeopardizing a spouse’s security.

Still have questions?

Brunelle Medicaid specializes in guiding Massachusetts families through the MassHealth maze—from spend‑down plans to application paperwork and appeals. Contact us for a consultation and get peace of mind knowing your loved one’s care is covered.

(This article is provided for educational purposes and is not legal advice. Figures are current as of May 2025; always verify numbers or consult an elder‑law attorney for your specific situation.