The term “spousal refusal” is used when the community spouse (the spouse who is not institutionalized), has assets above the maximum level, and chooses not to contribute to the cost of care for an institutionalized spouse. The institutionalized spouse cannot be denied Medicaid because the community spouse refuses to contribute. The refusing spouse must still provide any and all financial information and cooperate fully with the Medicaid application. Moreover, once Medicaid is approved, the county does have the right to seek recovery against the community spouse.
With respect to income, an applicant for Chronic Medicaid may only keep $50.00 of his or her income monthly, his spouse may retain the greater of (1) all of his or her own income or (2) all of his or her income and enough of the institutionalized spouse’s income to bring them to $3,216.00.
As you can see from this brief overview of Chronic Medicaid, make sure you are seeking advice from those knowledgeable in the area to avoid unnecessary delay and expense. Contact our office to learn how an irrevocable trust can protect assets.