Financial Planning for Medicaid in Illinois
How to navigate the laws and ensure that nursing home care will be covered
By Doug Mentes, Esq. | Last updated on January 19, 2023Use these links to jump to different sections:

Who Qualifies for Medicaid?
Medicaid assists qualifying low-income individuals, including many seniors. Medicaid assists seniors with housing costs, including in-home care services and nursing home care. To be eligible for coverage for nursing or in-home care costs, seniors must demonstrate a need for the care or service by meeting certain eligibility requirements, including income, and asset limits. These limits change often. As of 2018, to receive Medicaid coverage, Illinois residents are limited to:- $2,000 in assets
- $16,643 in annual income
Be Careful Transferring Assets
Applicants often get themselves in trouble by making decisions without consulting someone knowledgeable in Medicaid rules. One area for problems is the transfer of assets—especially if it appears the transfer was to gain eligibility. Applicants are subject to a five-year look-back period for the transfer of any asset for less than fair market value. If the transfer does not comply with Medicaid rules, the applicant could be disqualified from coverage for a period of time.Exempt Assets
Some assets are exempt from being included in the calculations for Medicaid eligibility. If the senior owns their home, the value of the home can be excluded toward Medicaid eligibility. Equity up to an amount of $572,000 (which is subject to change) is exempt; anything over that amount will not be exempt. Other assets that are considered exempt from being counted toward Medicaid eligibility, include:- Pre-paid burial and funeral arrangements
- One vehicle
- Household items
- Personal effects
Planning for Medicaid
Seniors often have income or assets over and above the limits. However, methods have developed over the years to help seniors gain Illinois Medicaid eligibility. One method is to put money toward exempt assets. Another method in Illinois is the pooled trust. A nonprofit invests the Medicaid recipient’s excess funds—pooled with other recipients’ funds. Medicaid recipients can use the trust funds to supplement Medicaid coverage, special needs and to pay for items or human services not covered by Medicaid, including:- Specialized, medical equipment
- Enhanced healthcare or services
- Companion services
- Clothes
- Transportation
- Even take a vacation
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