As of 2026, California is the only state that has eliminated asset tests for all Medicaid (Medi-Cal) applicants. Several other states have eliminated asset tests for specific groups, such as families (e.g., Arizona, New York, Vermont) or for Medicare Savings Programs (e.g., Alabama, Delaware, Massachusetts, Mississippi).
* Alabama, Arizona, Connecticut, Delaware, Louisiana, Massachusetts, Mississippi, New Mexico, New York, Oregon, Vermont, and the District of Columbia do not have asset limits for MSPs (as of January 2026).
The best way to save your house from Medicaid recovery is to put it into an irrevocable trust. A trust protects the home because the individual no longer owns it.
The worst, in order from 50th to 41st, are in Mississippi, Idaho, Texas, Oklahoma, South Dakota, Indiana, South Carolina, Colorado, Alabama, and Missouri.
Medicaid agencies can and will look at your balance from any bank account you've had in the last five years. They may also conduct property checks using public records like deeds.
Upon one's death, the state will file a claim against their estate, including one's home, to collect funds for repayment of nursing home care expenses. Not all states use liens as a means of reimbursement for Medicaid funded long-term care. While Estate Recovery is required by all states, liens are not.
Medicaid audits are triggered by data analytics flagging unusual billing patterns (like high claim volume, upcoding, or excessive controlled substance billing) and external factors, including beneficiary complaints, whistleblower tips, or law enforcement info, all pointing to potential fraud, waste, or abuse, with issues like missing documentation or services not meeting guidelines also raising red flags.
Ten states—Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming—have not expanded Medicaid eligibility under the Affordable Care Act to individuals with incomes up to 138% of the federal poverty level.
If you already have some legal experience, you might see how an asset protection trust is excellent for protecting assets from litigation and creditors. By removing ownership of the valuable assets in question away from you and your immediate family members, you make those assets practically untouchable…
Scorecard Takeaways
Non-Countable Assets
Non-Countable (exempt) assets are not counted towards Medicaid's asset limit. Exempt assets include one's primary home, given certain conditions are met. The home is automatically exempt if the applicant's spouse, child under 21 years old, or blind or disabled child (of any age) lives in it.
Yes, income and assets have to be verified again for Medicaid Redetermination. After initial acceptance into the Medicaid program, redetermination is generally every 12 months. The redetermination process is meant to ensure the senior Medicaid beneficiary still meets the eligibility criteria, such as income and assets.
As long as the trust is created and assets transferred five years before the donor applies for Medicaid long-term care benefits, Medicaid will not penalize the donor for transferring assets, and the trust's existence will not impact Medicaid eligibility.
The 10 worst programs—ranked in order from 50 to 41—are Mississippi, Texas, Idaho, Oklahoma, South Dakota, Indiana, South Carolina, Colorado, Alabama, and Missouri, the report concluded.
If you or your loved ones don't qualify for Medicaid, you have other options, including CHIP for people under 18 years, Tricare for military personnel and their families, and Medicare for people ages 65 years and older. You can also consider state-based programs that may offer healthcare plans at a lower cost.
What Not to Say During an Audit?
State Medicaid agencies operate electronic asset verification systems (AVSs) that collect information directly from financial institutions to determine whether certain seniors and people with disabilities who are applying for or receiving Medicaid have assets below eligibility caps.