Spousal Impoverishment

The cost of nursing home care in CT can be more than $8,000 per month. Such an expense can quickly wipe out the life savings of most couples. For many years it was necessary for a couple to spend all of their savings before they could qualify for Medicaid to help pay for nursing home care. In 1988, Congress enacted a law to protect some of the couples’ life savings when one of the partners needs nursing home care. The law, referred to as “spousal impoverishment act” attempts to ensure that the community dwelling spouse will be able to live with dignity in the community without being pushed into poverty to obtain nursing home care for a spouse.

Under the spousal impoverishment act, a portion of the couple’s savings is set aside for use by the community spouse and is not intended to be used to pay for nursing home care for the nursing home spouse. The community spouse is free to spend the money as he/she requires to maintain life in the community.  In addition to life savings, a portion of the couple’s retirement income may also be given to the community spouse, depending on the amount of income the community spouse has, and the amount needed to maintain the couple’s home.

The amount of money that can be protected for the community spouse is revised periodically by Congress. The 2025 standard allows a maximum savings of $157,920 and a minimum income for the community spouse of $2.555 per month. When reviewing information about eligibility for Medicaid, remember that the spousal impoverishment protections should be included in the determination about eligibility.