QMC

What is Community Spouse Resource Allowance

What is the Community Spouse Resource Allowance?

The Community Spouse Resource Allowance, or CSRA, is portion of assets granted to the Community Spouse when the Institutionalized Spouse/Medicaid applicant enters a period of institutionalization in a nursing home. The CSRA is a vitally important allowance under the Spousal Impoverishment rules established by the federal government, used for asset protection for the family. This Allowance is an amount of assets from otherwise countable assets (including the primary home) that the Medicaid program will allow the Community Spouse to keep with the Institutionalized Spouse still qualifying for Medicaid eligibility, making this allocation non-countable assets.

The CSRA is granted to the married couple after the filing of a Division of Assets with the state Medicaid agency, department of health, etc. The Division of Assets is filed at the time that the institutionalized spouse enters nursing home care. When this Division is filed, the state will create the CSRA from spend down, and giving the Community Spouse a portion of the couple’s assets to continue to live in the community at his or her current standard of living.

Under current Medicaid spousal impoverishment rules the following financial levels apply: The minimum CSRA in 2024 is $30,828, and the maximum is $154,140. The community spouse is always allowed to keep the minimum CSRA. The CSRA can increase, even up to the maximum if they have greater assets than the minimum. Typically, the couple’s assets are split in one-half, with the CSRA limited to the maximum CSRA of a $154,140 asset limit.

And there are further benefits over and above the grant of the CSRA. After the CSRA has been allocated to the community spouse, the applicant spouse may still have some of the family’s to spend down before Medicaid benefits begin. When eligibility does begin, the Division of Assets provides a further major benefit: a full allocation of the family’s monthly income to the healthy spouse to live on on a monthly basis, referred to as the Minimum Monthly Maintenance Needs Allowance (or the MMMNA). The maximum MMMNA income limit is currently $3,853. If the spouse’s income is insufficient to meet this assigned income limit, the healthy spouse may receive an income allowance of the income of the spouse living in the nursing facility (over and above the income of the community spouse) to allow her to reach her assigned income amount. Additionally, Medicaid law allows a credit and exemption for any health care insurance or Medicare monthly premiums due, as well as small personal needs allowance, as reductions from income due to the nursing home.

When a married couple first contemplates the entry of a spouse into long-term care, it is vitally important for family members and loved ones to encourage the family to immediately contact professionals (such as QMC) to investigate Medicaid planning and the filing of a Division of Assets. While the spouse in need must receive care services for 30 consecutive days before the Division can be filed, early planning is vital. (Also, the Division and creation of the CSRA can be employed to provide home care, community based services and hcbs). The main goal, as always, is to be prepared as early as possible. Early Medicaid planning and estate planning always results in maximum asset protection.

Shopping cart close