Medicaid is a “needs-based” program, which means that you may face various challenges when applying. You may have heard that if you own substantial assets, then you will not qualify for Medicaid. But is this really true? With the right strategies, you might be able to qualify even if your on-paper assets would otherwise make you ineligible for this program. An experienced Medicaid attorney in Florida could help you “transform” these assets in various ways, ensuring your qualification for this vital form of healthcare support. How do these strategies work?

Understanding the Asset Limits for Medicaid Qualification in Florida

Why do you need to worry about your assets when applying for Medicaid in Florida? The answer is simple: If your assets are above a certain limit, you will not qualify. The first step in overcoming this hurdle is to become aware of the limits in question. It is important to understand that these asset limits change from year to year based on inflation and other economic factors. As a result, you may want to check with a Medicaid attorney to determine the most up-to-date eligibility information when applying for this program. 

In 2025, the asset limit for Nursing Home Medicaid and Community-Based Services is $2,000 for a single individual and $3,000 for a married couple. The asset limit is higher for Regular Medicaid, and a single individual can have up to $5,000 in assets while still qualifying. A married couple can apply with up to $6,000 in assets. 

Understanding Exempt Assets During Medicaid Application

In addition to the asset limit, you are also allowed to apply for Medicaid with a certain amount of “exempt assets.” These assets are exempt from eligibility calculations. In other words, they “do not count.” Common examples include personal belongings, household furniture/fixtures, one vehicle, and the primary home. 

For most spouses, the primary home is their main asset. While you can keep a primary residence and still qualify for Medicaid, this exemption has limits in Florida. In 2025, this home equity limit is $730,000. In other words, you may encounter challenges when applying for Medicaid if your home is worth more than $730,000. Note that this is not the market value of your home, but rather the amount of the home that you have paid off. For example, your home might be worth $1 million – but you may still have $270,000 on the mortgage. In this situation, you could still qualify for Medicaid. 

You should also know that the home equity limit in Florida is not the same as the homestead exemption under the Florida Constitution. While the exemption under the Constitution is limitless, the Medicaid exemption is not. That said, the exemption under the Florida Constitution could help you qualify for Medicaid in certain situations. 

Spend-Down Strategies

Spend-down strategies could represent a potential solution for those trying to qualify for Medicaid. These strategies involve spending non-exempt assets (such as cash) in such a way that they become exempt. A classic example is using cash savings to pay for home renovations. With this approach, seniors can transfer equity into their home, making the cash exempt. 

Consider Trusts

You may also use various strategies involving trusts to qualify for Medicaid. While these strategies can be more complex, they may represent positive solutions for those with higher net worths. Consider discussing Medicaid trusts with an experienced elder law attorney in Florida. 

Why You Should Get Started on These Strategies Early

Florida’s lookback period for Medicaid eligibility calculations is 60 months (five years). This means that if you need to make certain transactions in order to qualify for Medicaid, it is best to get started as soon as possible. When reviewing your application, Medicaid officials will assess your financial records over the past five years. They will search for any suspicious transactions, such as selling your home for below market value. You will also be penalized if you simply give assets away in order to meet Medicaid’s asset eligibility limits. 

The Advantages of Having Just One Spouse Apply for Medicaid

One obvious strategy involves one spouse applying for Medicaid while the other does not. If you utilize this strategy when applying for Nursing Home Medicaid, the non-applying spouse can have assets of about $158,000, while the other spouse may have assets up to $2,000 in value. This gives both spouses a total asset limit of about $160,000 in 2025. Spouses may age and encounter medical issues at different times, and so one spouse may not yet need Medicaid when the other applies. 

This strategy allows spouses to keep a considerable portion of their wealth aside without having to worry about complex asset protection or spend-down strategies. That said, this approach is obviously not suitable if both spouses need access to Medicaid at the same time. 

Income May Also Affect Eligibility

While most focus on meeting asset limits when applying for Medicaid, income also matters. Many elderly or disabled people earn income, even if they do not work full-time (or at all). For example, an elderly couple might hold a modest number of dividend-paying stocks. Some might also own treasury bills. Individuals who hold these investments over long periods could eventually earn a significant amount of money each month in passive income.

If this sounds familiar, you may have to convert income-generating assets into other assets before you apply for Medicaid. This does not necessarily have to affect your overall wealth, especially if you choose the right strategies. For example, you may be able to earn returns on your investments and channel those dividends toward trusts and other asset protection strategies.   

Can a Medicaid Lawyer in Florida Help Me?

A Medicaid lawyer in Florida may be able to help you qualify for Medicaid, even if you do not currently qualify based on your existing assets. During a consultation with one of these lawyers, you can discuss your unique financial situation and determine the most appropriate strategies. There could be numerous possibilities, and you should not dismiss the possibility of qualifying for Medicaid just because you have a slightly higher net worth than most applicants. Discuss your next move in more detail with the Elderly Care Law Firm today.