Alabama
How does LTC Medicaid in Alabama work?
Alabama Medicaid offers health coverage to low-income residents, including elderly individuals aged 65 and older who require long-term care services. This includes both institutional care in nursing facilities and support services that help seniors remain in their homes.
What are the Medicaid program options in Alabama?
- Institutional / Nursing Home Medicaid: Guaranteed benefit for those meeting criteria, with services in nursing facilities.
- Home and Community-Based Services (HCBS): Limited slots, with care provided at home or in adult day care to delay nursing home placement.
- Regular Medicaid for the Elderly and Disabled (E&D): Guaranteed access to long-term care services for those who qualify.
What are the 2025 Financial Eligibility Guidelines for Alabama Medicaid?
Eligibility depends on both financial need and functional status. Below are limits for a single nursing home applicant:
- Monthly Income: $2,901
- Assets: $2,000
- Medical Need: Must require nursing home level of care
Applicants may still qualify with the help of Medicaid planning strategies if over these limits.
Eligibility Table
| Type | Single | Married (Both Apply) | Married (One Applies) |
|---|---|---|---|
| Nursing Home Medicaid | $2,901 / $2,000 | $5,802 / $4,000 | $2,901 income / $2,000 applicant assets + $157,920 non-applicant |
| HCBS Waivers | $2,901 / $2,000 | $5,802 / $4,000 | Same as above |
| Regular Medicaid (E&D) | $987 / $2,000 | $1,470 / $3,000 | $1,470 / $3,000 |
What are the Income Eligibility Limits for Alabama Medicaid?
Most types of income are counted toward eligibility, including Social Security, pensions, and wages. Some exceptions apply, such as Holocaust restitution and VA Aid & Attendance benefits.
If only one spouse is applying, only their income is counted. The other spouse may be entitled to a Monthly Maintenance Needs Allowance (MMMNA), currently set at $2,643.75 (2025–2026).
What are the Resource Eligibility Limits for Alabama Medicaid?
Countable assets include cash, retirement accounts, investments, and property not used as a primary residence. Exempt assets include:
- Primary home (with limits)
- One vehicle
- Burial funds up to $5,000
- Personal items like furniture and clothing
The Community Spouse Resource Allowance (CSRA) allows a non-applicant spouse to retain up to $157,920 in assets in 2025.
What is the Medicaid Look-Back Period in Alabama?
Transfers of assets within 60 months (5 years) of applying for Nursing Home Medicaid or a Waiver are reviewed. Any transfers made below market value can result in a penalty period of ineligibility.
Note: The federal gift tax exemption does not override Medicaid’s transfer penalties.
What are the Alabama rules on Home Ownership & Estate Recovery?
While the home may be exempt during a beneficiary’s lifetime, it can be subject to estate recovery after their death unless protections are in place.
What is the Alabama rule on Functional Eligibility for Long-Term Care Medicaid?
Applicants must demonstrate a need for long-term care. This could mean a nursing facility level of care or, for E&D programs, significant help with activities of daily living (ADLs).
What can I do if I exceed the asset or income limits for Alabama Medicaid?
1. Can I use a Qualified Income Trust (QIT) in Alabama to qualify for Medicaid?
Yes. A QIT helps applicants with excess income qualify for Medicaid by placing income into a restricted-use, irrevocable trust.
2. Can I spend down assets to qualify for Alabama Medicaid?
Excess assets may be spent on exempt items like home modifications, medical equipment, or paying off debt. Documentation is critical.
3. Can I hire a Medicaid Planner to help me qualify for Alabama Medicaid?
Professional Medicaid planners help families protect assets and navigate eligibility rules, especially when both income and assets exceed limits.
What Additional Alabama programs may I be able to access if I am eligible for Medicaid?
Elderly & Disabled Waiver (E&D): In-home support services and personal care with optional self-directed care through the Personal Choices program.
ACT Waiver: Helps nursing home residents move back into the community with services like home modifications and respite care.
PACE: Combines Medicaid and Medicare benefits under one coordinated care plan.
Money Follows the Person (MFP): Assists institutionalized individuals with returning to community living.
How do I apply for Alabama Medicaid?
You can apply for Alabama Medicaid in one of the following ways:
- Online via the official Alabama Medicaid website
- By phone at 1-800-362-1504
- By submitting the Application/Redetermination for Elderly and Disabled Programs
For help, contact your local Medicaid office or Area Agency on Aging. Applicants who may be over financial limits should consider speaking with a Medicaid planning professional before applying.
Can I hire someone to assist me with my Alabama Medicaid application?
Yes. The Alabama Medicaid department is very limited in the amount of assistance they are able to provide, so most people turn to a skilled and knowledgeable Medicaid application service to help them through the process. People who use these services find that they avoid making mistakes and get approval faster than doing it themselves.
