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If my parents sell their house does that make them ineligible for Medicaid?

Status: Open    Jan 18, 2015 - 01:52 AM

Medicare/Medicaid

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Expert Answers

Apr 06, 2016 - 08:35 AM

Yes it could. If the amount they receive from the house sale puts them over the exempted monetary amount to receive Medicaid. They would then need to spend down again to meet that threshold.
It is important to consult with a qualified attorney to be sure of the correct move before said sale.

Apr 06, 2016 - 08:40 AM

You need to consult with an Elder Law attorney in their home state for specifics. Generally though, the sale of the home would be converting an exempt asset (the home) to a non-exempt asset, cash, and they would be rendered ineligible unless they were to take further steps to protect the cash such as setting up a Medicaid Qualifying Trust for example. That is why you need to get expert advice here.

Apr 12, 2016 - 08:11 AM

No, as long as they sell the house for “fair market value.” Of course, upon selling their house, the cash proceeds of that sale will count as resources for the Medicaid eligibility determination. Therefore, while a sale of their house for fair market value will not inherently disqualify them from Medicaid, it will possibly delay their ability to apply for Medicaid, as they will have to “spend down” those sale proceeds before applying.
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