Home Equity Cap for Medicaid Eligibility Set to Change in 2028
Key Questions
What is the new home equity cap for Medicaid eligibility?
A new federal rule sets a $1 million cap on home equity for determining Medicaid long-term care eligibility. This change will take effect in 2028 and applies to asset limits used in eligibility calculations.
Who is most likely to be affected by the 2028 home equity cap?
Middle-class homeowners in high-value areas, such as Philadelphia suburbs, may face reduced eligibility for Medicaid long-term care coverage. The cap could require additional planning for those with homes valued near or above $1 million.
Are there any strategies mentioned to address the home equity cap?
Reverse mortgages are noted as a potential workaround to manage home equity for Medicaid planning purposes. This approach supports asset protection strategies ahead of the 2028 policy update.
A new $1 million home equity cap for Medicaid eligibility will take effect in 2028, potentially affecting middle-class homeowners in high-value areas like Philadelphia suburbs. Reverse mortgages are highlighted as a workaround. This is a critical policy change for asset protection and long-term care planning.