Increases in the Community Spouse Resource Allowance and the Community Spouse Maintenance Needs Allowance

For any elder law attorney in Illinois, the highlight of 2023 thus far has been the increases in the Community Spouse Resource Allowance (CSRA) and the Community Spouse Maintenance Needs Allowance (CSMA). The CSRA is the amount of assets that a community spouse (the spouse who is remaining in the community) is able to retain when an application for Medicaid benefits is filed to pay for the long-term-care costs of a spouse that is in a nursing home, commonly referred to as the “institutionalized spouse.” The CSMA is the amount of income that a community spouse is able to retain when an application for Medicaid benefits for long-term-care of an institutionalized spouse is filed.

Community Spouse Resource Allowance increase

To financially qualify for Medicaid, a married individual (a community spouse) could previously retain no more than $109,560.00 in order for the institutionalized spouse to qualify for Medicaid benefits to pay for long-term-care. This amount has now been increased to $120,780.00 in assets. Of course, there are still exceptions and exempt assets that do not impact the CSRA. However, any increase in the amount of assets that a community spouse can maintain is a win.

Community Spouse Maintenance Needs Allowance

Previously, the monthly income that a community spouse could retain was $2,739.00. It has now been increased to $3,715.50. When an application for long-term-care Medicaid benefits for an institutionalized spouse is filed, typically, all of the institutionalized spouse’s income would be paid to the facility each month. However, the CSMA allows for some of the institutionalized spouse’s monthly income to be diverted to the community spouse. As such, if the community spouse only has a monthly income of $2,000.00, then up to $1,715.50 (to allow for a total of $3,715.50 in monthly income) from the institutionalized spouse’s income could go to the community spouse each month instead of the facility. There are also other considerations such as the “name on the check rule” as well as petitioning the Court to increase the CSMA beyond $3,715.50, but again any increase is a win in the eyes of an elder law attorney.

Conclusion

The increases in the CSRA and CSMA help elder law attorneys ensure asset preservation for community spouses while also ensuring Medicaid benefits for their spouses to pay for long-term-care in a nursing home that would otherwise be unaffordable for many.

If you have a spouse who currently needs or may in the future need skilled care in a nursing home, the elder law attorneys at Chuhak & Tecson can meet with you to ensure that you are taking all possible steps to protect and preserve your assets and income.

Client alert authored by Christine A. Barone (312 855 4348), principal.

This Chuhak & Tecson, P.C. communication is intended only to provide information regarding developments in the law and information of general interest. It is not intended to constitute advice regarding legal problems and should not be relied upon as such.