Starting in 2028, Home Equity Over $1 Million Disqualifies Individuals From Medicaid Nursing Home Coverage
A new federal rule set to take effect January 2028 will disqualify individuals with more than $1 million in home equity from receiving Medicaid nursing home coverage. The cap is part of the Budget Reconciliation Act of 2025 and applies nationwide, freezing at a fixed amount without annual inflation adjustments. This change affects retirees who own homes valued above this threshold but may have limited savings or income. Currently, states can set their own limits up to $1.13 million, with twelve states plus D.C. using the higher cap. These will be required to drop permanently to $1 million in 2028. Retirees living in high-cost areas like San Francisco and Honolulu may find themselves ineligible despite having little cash savings due to significant home appreciation over decades. The rule includes exceptions: if a spouse, child under 21, or blind/disabled dependent resides in the home, the equity cap does not apply. Additionally, states must maintain hardship waiver processes for those affected.
Topics: elderly care home equity cap Medicaid nursing home coverage