The individual countable asset limit for Medicaid long-term care is projected to stay at $2,000 in 2027 in most states. That number has not moved since 1989 and is not indexed to inflation, so it almost certainly will not change next year. What does change every January is the set of spousal protection figures around it: the Community Spouse Resource Allowance (CSRA), which is projected to run from roughly $33,300 to $169,200 in 2027, and the home equity interest limit, projected at roughly $771,000 to $1,175,000. One more thing worth knowing now: starting January 1, 2028, federal law caps home equity at $1 million for anyone seeking Medicaid long-term services and supports, which means 2027 is the final year the higher state limits apply.
Below are the confirmed 2026 figures, the projected 2027 figures with the assumptions behind them, and what actually counts as an asset.
Confirmed 2026 Figures vs. Projected 2027
The Centers for Medicare & Medicaid Services (CMS) publishes updated spousal impoverishment and home equity standards each fall, usually in a November or December informational bulletin, effective the following January 1. The 2027 numbers will not be official until late 2026. The projections below assume a CPI-U increase in the 2.5% to 4.0% range, consistent with the 3.0% bump applied to the 2026 standards and with current 2027 cost-of-living forecasts running between roughly 2.8% and 4%.
| Figure | 2026 (Confirmed) | 2027 (Projected Range) |
|---|
| Individual asset limit (most states) | $2,000 | $2,000 (no change expected) |
| Couple asset limit, both applying | $3,000 | $3,000 (no change expected) |
| CSRA minimum | $32,532 | $33,300 to $33,850 |
| CSRA maximum | $162,660 | $166,700 to $169,200 |
| Home equity limit, minimum | $752,000 | $771,000 to $782,000 |
| Home equity limit, maximum | $1,130,000 | $1,158,000 to $1,175,000 |
| Monthly Maintenance Needs Allowance (MMMNA) maximum | $4,066.50 | $4,170 to $4,230 |
| MMMNA minimum (July to June cycle) | $2,643.75 | approximately $2,700 to $2,760 |
| Income cap, 300% of SSI federal benefit rate | $2,982/month | approximately $3,060 to $3,100/month |
Treat every 2027 number in that table as an estimate for planning, not a determination. Only CMS and your state Medicaid agency set the real figures.
Why the $2,000 Asset Limit Does Not Move
The $2,000 countable resource limit traces back to the Supplemental Security Income (SSI) resource standard set in 1989. Unlike the income limit, the CSRA, and the home equity limit, it carries no inflation index in statute. Congress would have to pass a law to raise it. Proposals to do so surface regularly and have not become law, so the safe planning assumption for 2027 is that $2,000 holds.
That is why a handful of states have raised the limit on their own, and why those state numbers matter far more to most applicants than any federal projection.
States That Depart From $2,000
| State | Individual Asset Limit | Notes |
|---|
| California (Medi-Cal) | $130,000 | California eliminated the non-MAGI asset test in 2024, then reinstated a limit effective January 1, 2026, at $130,000 for an individual with additional allowances for extra household members |
| New York | $33,038 (2026) | Indexed and rises annually; married limit is $44,796 |
| Illinois | $17,500 | Raised in 2023, flat since |
| Maine (MaineCare) | $10,000 | Increased exemption; $15,000 for a married couple |
| Most other states | $2,000 | $3,000 for a couple when both spouses apply |
If you live in one of these states, the state figure controls. If you live anywhere else, plan around $2,000.
The Community Spouse Resource Allowance in 2027
The CSRA is the amount of countable assets the spouse who stays at home (the "community spouse") gets to keep when the other spouse enters a nursing home or starts a Medicaid home and community based services (HCBS) waiver. It exists so that paying for one spouse's care does not wipe out the other.
Federal law sets a floor and a ceiling. States choose where to land inside that band, and they do it one of two ways:
- Maximum states (also called "standard" or "100%" states). The community spouse keeps all countable assets up to the federal maximum, regardless of how much the couple has. In 2026 that ceiling is $162,660. Projected 2027: roughly $166,700 to $169,200.
- 50% states. The community spouse keeps half the couple's countable assets, subject to the federal minimum floor and maximum ceiling. If half the assets fall below the floor ($32,532 in 2026, projected $33,300 to $33,850 in 2027), the spouse still keeps up to the floor.
Here is how the same couple would be treated differently in 2027 under projected figures, assuming a 3% index increase (CSRA floor about $33,500, ceiling about $167,500):
| Couple's Countable Assets | Maximum State (spouse keeps) | 50% State (spouse keeps) |
|---|
| $40,000 | $40,000 | $33,500 (floor applies) |
| $120,000 | $120,000 | $60,000 |
| $250,000 | $167,500 (ceiling applies) | $125,000 |
| $400,000 | $167,500 (ceiling applies) | $167,500 (ceiling applies) |
In every scenario, the applicant spouse must still spend down to the $2,000 individual limit. The CSRA protects the healthy spouse's share, not the applicant's.
Home Equity Limits and the 2028 Cliff
A primary residence is normally an exempt asset for Medicaid long-term care, but only up to a home equity interest limit. Equity above that ceiling makes the applicant ineligible until the excess is addressed.
The 2026 federal band is $752,000 (minimum) to $1,130,000 (maximum), and states pick a figure inside it. For 2027, the projected band is roughly $771,000 to $1,175,000.
Two exceptions apply and are not projected to change:
- The limit does not apply when a spouse continues to live in the home. In that case the home is fully exempt regardless of equity.
- The limit also does not apply when a minor child or a blind or permanently disabled child of any age lives in the home.
The bigger structural change lands the year after. Under the reconciliation law enacted in 2025 (H.R. 1), effective January 1, 2028, state Medicaid programs cannot cover long-term services and supports for anyone whose home equity exceeds $1 million on a non-agricultural lot. Roughly a dozen states currently use the higher discretionary limit, and those states will have to bring their ceilings down. The practical takeaway: 2027 is the last year in which a home with $1.1 million of equity can sit inside a state's exemption. Undue hardship, spousal, and disabled-child exceptions continue to apply.
What Counts as an Asset (and What Does Not)
Asset limits only apply to countable resources. The exemptions do a lot of work.
| Typically Countable | Typically Exempt |
|---|
| Checking and savings accounts | Primary home (up to the equity limit, with the exceptions above) |
| Stocks, bonds, mutual funds | One vehicle, generally regardless of value |
| Certificates of deposit | Personal belongings and household furnishings |
| Second homes and investment property | Irrevocable burial trusts and prepaid funeral plans |
| Cash value of some life insurance (face value over $1,500) | Term life insurance |
| Retirement accounts in some states | Retirement accounts in payout status in many states |
| Money in a revocable trust | Assets in a properly structured irrevocable trust (subject to the look-back) |
Retirement account treatment is the single biggest state-to-state variable. Some states count an IRA or 401(k) in full. Others exempt it entirely if it is in required-minimum-distribution payout status, and count only the income it produces. Check your state before assuming either way.
The Five-Year Look-Back Still Applies
Any asset transferred for less than fair market value within 60 months of applying (30 months in California) triggers a penalty period during which Medicaid will not pay for care. The penalty is calculated by dividing the transferred amount by the state's average private-pay nursing home cost. Nothing about the 2027 index changes this rule. Giving money away to hit the $2,000 limit is the most common and most expensive mistake in this area.
How to Apply for Medicaid Long-Term Care
- Identify the right program. Nursing home Medicaid, HCBS waivers, and Aged/Blind/Disabled Medicaid have different rules and different waiting lists. Nursing home Medicaid is an entitlement; waivers frequently are not.
- Inventory countable assets. List every account, policy, property, and vehicle. Note which are exempt under your state's rules.
- Get a snapshot date if married. For spousal cases, the CSRA is calculated from the couple's assets on the date the applicant spouse first entered a hospital or nursing facility for at least 30 continuous days. Pull statements from that date.
- Confirm the medical need. Long-term care Medicaid requires a functional assessment showing a nursing facility level of care.
- Spend down legally if needed. Paying off debt, making home repairs, prepaying a funeral, and buying a needed vehicle are generally permitted. Gifting is not.
- Apply through your state Medicaid agency. Most states accept applications online, by mail, or at a county office. Processing typically takes 45 to 90 days, longer if a disability determination is required.
- Respond to every request fast. Missing verification requests is the leading cause of denial.
Because state rules diverge so sharply, confirm your state's asset limit, CSRA method (maximum vs. 50%), home equity ceiling, and retirement account treatment before you plan around any federal figure.
Frequently Asked Questions
Will the Medicaid asset limit go up in 2027?
The individual limit is projected to stay at $2,000 in most states. It is not indexed to inflation and has not changed since 1989. Only Congress can raise it, and no law to do so has passed. The figures that will rise in 2027 are the CSRA, the MMMNA, the home equity limit, and the 300% SSI income cap.
What is the projected 2027 Community Spouse Resource Allowance?
Roughly $33,300 to $33,850 at the minimum and $166,700 to $169,200 at the maximum, based on 2026 figures of $32,532 and $162,660 and an expected inflation index of 2.5% to 4.0%. CMS will publish the official numbers in late 2026.
What is the projected 2027 Medicaid home equity limit?
Approximately $771,000 to $782,000 (minimum) and $1,158,000 to $1,175,000 (maximum), up from $752,000 and $1,130,000 in 2026. Beginning January 1, 2028, a hard $1 million federal cap replaces the higher option for long-term services and supports.
Does my house count against the Medicaid asset limit?
Usually not, if you live in it and your equity is under your state's limit. It is fully exempt regardless of equity if your spouse, a minor child, or a blind or disabled child lives there. It can still be subject to estate recovery after death.
What is the 2027 income limit for nursing home Medicaid?
In income-cap states, the ceiling is 300% of the SSI federal benefit rate, which is $2,982 per month in 2026. With a projected 2027 cost-of-living adjustment, that would land near $3,060 to $3,100 per month. Applicants over the cap in those states typically use a Qualified Income Trust (Miller Trust).
Can I give away money to qualify?
No. Transfers for less than fair market value during the 60-month look-back (30 months in California) create a penalty period with no Medicaid coverage. The penalty is based on the amount transferred divided by your state's average monthly private-pay nursing home cost.
Do both spouses have to spend down to $2,000?
Only if both spouses are applying, in which case the couple limit of $3,000 typically applies. When one spouse stays in the community, the applicant spends down to $2,000 and the community spouse keeps assets up to the CSRA.
