Can Medicaid pay for a nursing home if Mom has savings?
Medicaid pays for most long nursing home stays, but only for people who qualify by income and savings. Each state sets its own rules. Here are the federal rules every state follows: the 5-year look-back, protections for a spouse at home, and what happens to the house.
This is general information, not legal or money advice. The rules are hard to follow. Talk with your state Medicaid office before you move any savings. An elder law lawyer can also help.
Does savings mean Medicaid won't pay?
Not always. Each state sets income and savings limits for nursing home care. Some savings and property may not count, and the rules differ by state.
Ask your state Medicaid office what counts in your state, and how people with more than the limit can qualify there.
The 5-year look-back
When someone applies for Medicaid nursing home care, the state looks back at past transfers. Federal law sets this at 60 months, but some states use a different period. It checks for savings or property given away or sold for less than it was worth.
If it finds any, Medicaid may not pay for nursing home care for a while. To set how long, the state divides the value given away by what a month in a nursing home costs on average in the state.
So giving savings to family to qualify can backfire. Ask first.
If Dad still lives at home
Federal rules protect a husband or wife who stays at home. Part of the couple's savings is set aside for the spouse at home. Some of the nursing home spouse's income can also go to the spouse at home.
The table below shows the federal ranges for 2026. Each state sets its own amounts inside them.
What happens to the house?
For people 55 and older, states must try to get back the cost of Medicaid nursing home care from their estate after they die. This is called estate recovery.
States can't do this while a husband or wife is alive, or if there is a child under 21 or a child of any age who is blind or disabled. States must also have a way to waive it when it would cause undue hardship.
For Medicaid nursing home care, home equity over the state's limit can stop Medicaid from paying. In 2026, states set that limit between $752,000 and $1,130,000. The limit does not apply if a husband or wife, a child under 21, or a blind or disabled child lives in the home.
Find a nursing home that takes Medicaid
Not every nursing home takes Medicaid. Our nursing home pages show whether Medicare's data lists each home as taking Medicaid. Confirm with the home before your parent moves in.
| What is protected | Federal range for 2026 |
|---|---|
| Savings kept by the spouse at home | $32,532 to $162,660 |
| Monthly income for the spouse at home | $2,705 to $4,066.50 (the lower amount is $3,381.25 in Alaska and $3,111.25 in Hawaii, from July 1, 2026) |
| Home equity limit | $752,000 to $1,130,000 |
Source: Medicaid.gov, 2026 Supplemental Security Income (SSI) and Spousal Impoverishment Standards (April 27, 2026), checked 2026-10-26.
Checklist
- Call your state Medicaid office and ask what counts in your state.
- Ask how far back your state looks, and gather bank and investment statements for that time.
- Don't give away or move savings before you get advice.
- If a spouse lives at home, ask how much income and savings they can keep.
- Check that the nursing home takes Medicaid.
Common questions
How far back does Medicaid look?
Federal law sets 60 months, or 5 years, before the application. Some states use a different period, so ask your state Medicaid office.
Will Dad lose everything if Mom goes into a nursing home?
No. Federal rules let a spouse at home keep part of the couple's savings and some income. Each state sets the amounts inside federal ranges.
Can Medicaid take the house?
After a Medicaid member 55 or older dies, the state must try to recover nursing home costs from the estate. It can't while a spouse is alive or if there is a child under 21 or a blind or disabled child.
Who can help us apply?
Your state Medicaid office handles applications. An elder law attorney can advise on your situation. PlanScout does not give legal or financial advice.
Do you know what to do next?
Sources
- Written by
- The PlanScout team. Updated Oct 26, 2026.
- Corrections
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Sources (5)
- Medicaid.gov — 2026 SSI and Spousal Impoverishment Standards (PDF) (retrieved Oct 26, 2026)
- Medicaid.gov — Spousal impoverishment (retrieved Oct 26, 2026)
- Medicaid.gov — Estate recovery (retrieved Oct 26, 2026)
- U.S. Code — 42 U.S.C. 1396p(c): transfer of assets and look-back (Cornell LII copy) (retrieved Oct 26, 2026)
- Medicaid.gov — Where to get help with Medicaid (state agencies) (retrieved Oct 26, 2026)
This guide is general information, not medical, legal, or financial advice. Confirm details with the provider, your plan, or a licensed professional.