People on Medicaid are allowed to have income and resources up to certain levels. The levels change at the beginning of each year and are different depending on the size of your household and the type of care of which you need Medicaid. For someone residing in their home, applying for Medicaid to help pay for prescription, hospital bill or some personal care in the home, the following levels are effective in 2001:
Household size of one: $634-monthly income & $3,800-countable resources
Household size of two: $925-monthly income & $5,500-countable resources
Levels for larger households are available upon request.
If the application is for nursing home care, the levels are different depending on whether you are a single individual (divorced, legally separated, widowed or never married) or if you are married. A single individual would have the same resource level as a household of one above. They keep a $50 personal allowance from their total income each month and their remaining income is paid to the nursing home each month. A married couple, of which only one requires Medicaid for nursing home level of care would be eligible under the spousal impoverishment program.