How to Plan for Medicaid Eligibility in Texas

Texas Medicaid coverage is offered to a variety of eligibility groups who meet the income and asset requirements. Although Medicaid is federally funded, each state has its own specific qualification guidelines. Medicaid covers nursing home expenses in Texas, which can be quite costly. If you or a loved one may need help paying for long-term care down the road, consider planning for Medicaid eligibility while you can. In Texas, there are strict look-back laws. Medicaid reviews all financial records five years prior to application submission.

Instructions

• 1

  Meet the income requirements. The income limitations range from $867 to $1,734 per person. Couples can earn between $1,167 and $2,334 a month. If you are planning to apply for Medicaid, adjust your earnings to fall within the acceptable income range.

• 2

  Transfer or gift away assets. You are allowed to have $2,000 in countable assets per person or $3,000 per couple. If you exceed the allowed amount, give away or transfer your assets to family members. As long as the gifts or transfers are made 60 months prior to your Medicaid application, Medicaid will not question the disposal of assets.

• 3

  Place funds in an irrevocable trust. Trusts are a common tool in estate planning. Place items into an irrevocable trust five years before you apply for coverage. The assets you put in the trust become property of the trust. To prevent nursing homes from seizing your assets, name family members as beneficiaries.

• 4

  Spend money on exempt assets. Texas Medicaid allows you to spend-down assets. Certain assets are not included in the asset limit. Your primary residence, vehicle and personal property are not counted toward the $2,000 or $3,000 you are allowed to maintain. Consider investing in a new home or renovating your current home. Purchase a new vehicle or furniture for the home.