Medicare-Medicaid Pay-Down of Assets
State law and regulations impose income and asset limits on persons applying for Medicaid.
The income limit for the institutional Medicaid program and certain home and community-based waiver programs is determined by the Washington State Department of Social and Health Services – Aging and Long-Term Support Administration. For 2025, the Medicaid income limit for individuals eligible is $2,901 per month.
The asset limit is $2,000 for an individual or $3,000 for a married couple.
The agency reviews transfers made within the 60-month period before the month the client attained institutional status and applied for LTC.
The length of the penalty depends on when the transfer occurred, because it is based on the statewide average daily private cost for nursing facilities (“private rate”). This income standard typically changes every year in October.
Assets are defined as:
-A resource that the client or spouse owns
-A source of income not generated by a resource, that the client or spouse owns.
-Either a resource or source of income that the client or spouse does not own, but is entitled to.
Washington State Health Care Authority: Long-Term Services and Supports Manual