MassHealth (Medicaid) is the main payment source for nursing home care in Massachusetts (and nationally). Its eligibility rules are complicated and often misunderstood. Here are the basics:
1. Countable Assets Limit. The nursing home resident is limited to $2,000 in “countable” assets. Most assets are counted against this limit, except for the home (in most instances), one automobile, a prepaid funeral plan, and personal belongings, such as clothing and furniture.
We recently received this question from one of our readers:
Since when does a nursing home require that all assets be given to them, including life insurance policies before going on MassHealth? Why should they get every penny while the person is alive and after they die too?
The families of nursing home residents moving from private pay to MassHealth coverage in nursing homes often ask whether they should maintain their Medicare supplemental insurance policies. We generally tell them that it’s up to them because it makes not financial difference.