What are Michigan Medicaid asset limits and resource rules for 2026?
Executive summary
Michigan has recently raised long‑term care Medicaid countable asset limits from the decades‑old $2,000 cap to roughly $9,600 for single applicants and comparable increases for couples, with the new threshold effective in 2025–2026 and tied to cost‑of‑living updates (examples: $9,660 cited for 2025) [1] [2]. Sources agree the increase affects programs that require a nursing‑home level of care (MI Choice, PACE) while other Medicaid streams such as the Healthy Michigan Plan remain asset‑limit‑free [3] [4].
1. What changed and who it affects
Michigan moved to raise long‑term care Medicaid asset caps that had been $2,000 for singles for decades; reporting and legal guides show a new countable asset ceiling around $9,660 for single applicants (effective Feb. 1, 2025, in one legal resource) and multiple outlets cite similar “over $9,000” figures tied to long‑term care programs like MI Choice and PACE [1] [5] [4]. This change specifically targets Medicaid programs that require a nursing‑home level of care and similar LTSS (long‑term services and supports) pathways; expansion does not eliminate asset rules for aged/disabled Medicaid categories where they apply [4] [1].
2. Which programs still have no asset limits
Not all Medicaid in Michigan uses an asset test: the Healthy Michigan Plan (the state’s Medicaid expansion program) has no asset limit, and many community Medicaid pathways are income‑based rather than asset‑based — the asset increases are primarily for long‑term‑care eligibility [3] [4].
3. What counts as a “countable” asset and common exemptions
Countable assets typically include cash, bank accounts, stocks, bonds, intangible investments, retirement accounts such as IRAs (not always excluded), and real estate you do not live in — these are explicitly called out in Michigan guidance and practice notes [6] [7]. Exemptions commonly cited across reporting include the primary residence (subject to a home‑equity cap — examples show very high caps in state guidance and planning resources), one vehicle, personal effects and certain burial arrangements; estate recovery remains in force and can seek reimbursement from probate assets after death [2] [6].
4. Spousal protections and practical thresholds for couples
State and elder‑law sources note married applicants receive special treatment: couples often can shelter a larger share of resources (examples include a protected spousal allowance and higher combined caps), and reporting indicates the individual threshold rises “over $9,000” while couple figures are proportionally higher [8] [5]. One provider notes community spouse rules let the well spouse retain a share up to statutory maxima used in federal/state calculations [8].
5. Income rules remain distinct and still matter
Asset changes do not erase income tests: nursing‑home Medicaid income limits cited for 2026 include $2,982 per month for an individual in one projection, and states can use tools like spend‑down, Miller/Qualified Income Trusts, or program‑specific allowances to address income overages [9] [6]. Multiple sources emphasize you may still need to apply program‑specific remedies if income exceeds program limits [9] [10].
6. Timing, implementation and continuing uncertainty
Legal summaries show the $9,660 figure effective Feb. 1, 2025, while media and advocacy outlets describe the broader policy shift as unfolding in 2025–2026, with state rulemaking and program implementation deciding precise dates, indexing rules and home‑equity limits going forward [1] [5] [9]. Proposed changes and summaries (including MDHHS materials cited in planning briefs) indicate the increases will be tied to cost‑of‑living adjustments, but available sources do not provide the full final regulatory text or the exact 2026 home‑equity ceiling for Michigan in all documents [9].
7. Practical takeaways and disputes to watch
Practically, more Michiganders who need nursing‑home‑level care will be able to qualify without impoverishing themselves; advocates call it a long‑overdue correction to a $2,000 relic, while elder‑law attorneys caution that look‑back rules, estate recovery, and countable‑asset definitions mean planning remains complex [11] [6] [8]. Some outlets show slightly different numeric details (e.g., $9,660 vs. “over $9,000”), so applicants should verify the current MDHHS guidance before acting [1] [5].
Limitations: this summary relies on legal briefs, elder‑law commentary and local reporting provided above; available sources do not include the finalized 2026 MDHHS regulation text or an official single MDHHS table for every LTSS pathway, so readers should consult MDHHS publications or a qualified elder‑law attorney to confirm exact 2026 thresholds and how they apply to a given case [12] [1].