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 Texas Department for Health and Human Services. For 2025, the Medicaid income limit for individuals eligible for the Nursing Home (institutional) program is $2,901 per month. To qualify for Medicaid through SSI the income limit for an aged, blind or disabled individual cannot exceed $967 per month or $1,450 for a couple.
If a person in an institutional setting or the spouse of such a person disposes of assets for less than fair market value on or after the look-back date of 60 months, the person is ineligible for medical assistance for services during the period beginning on the date of penalty and equal to the total, cumulative uncompensated value of all assets transferred by the person (or person's spouse) on or after the first day of a month during or after which assets have been transferred for less than fair market value, or the date on which the person is eligible for medical assistance under the Texas State Plan for Medical Assistance and would otherwise be receiving institutional level of care based on an approved application for such care but for the application of the penalty period, whichever is later, and which does not occur during any other period of ineligibility, divided by the average monthly cost to a private patient of nursing facility services in the state at the time of application.
Texas Department for Health and Human Services – Monthly Income/Resource Limits
Texas Health and Human Services Medicaid for the Elderly and People with Disabilities Handbook, I-2100