The details of a previously announced (and blogged about) change to the definition of an exempt homestead for Medicaid has been revealed, and it turns out to be a rather minor adjustment. Specifically, the rule that is applied when a Medicaid applicant owns more than one residence has been changed so that instead of allowing the applicant to choose which of the properties to exclude, the rule will now direct that the residence excluded must be the one that is the applicant’s primary residence.
Current language:
Exclude only one homestead for an asset group. If an individual claims two homesteads, exclude the homestead of the individual’s choice.
Language as of July 1, 2023:
Exclude only one homestead for an asset group. If the individual owns more than one home exclude the principal place of residence. See glossary for definition of homestead and principal place of residence.
While this change is not inconsequential, it probably didn’t warrant an “alert.” Sorry if I caused any sleeplessness or unnatural hair loss.
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