Arkansas

What Long-Term Care Services Does Arkansas Medicaid Cover?

Arkansas Medicaid provides healthcare coverage for low-income individuals, including older adults in need of long-term care. This overview focuses on seniors aged 65 and older. In Arkansas, Medicaid can pay for care in nursing homes, assisted living residences, and adult foster care homes, as well as for non-medical services that allow elderly individuals to remain at home. Seniors may qualify under three primary categories of long-term care Medicaid:

What Are the Main Types of Medicaid Long-Term Care Programs in Arkansas?

1) What Is Nursing Home / Institutional Medicaid?

This is an entitlement program, meaning anyone who qualifies receives services. Care is provided exclusively in Medicaid-certified nursing homes.

2) What Are Home and Community Based Services (HCBS) / Medicaid Waivers?

Waivers have limited enrollment and may involve a waiting list. Services are designed to delay or prevent institutionalization and can be delivered at home, in adult day care, adult family homes, or assisted living facilities.

3) What Is Aged, Blind, and Disabled (ABD) Medicaid?

Also an entitlement program, ABD Medicaid provides various in-home and community-based services for individuals who meet the financial and functional requirements.

Arkansas Medicaid is jointly funded by the federal and state governments and administered by the Department of Human Services (DHS) through its Division of Medical Services (DMS).

What Financial Requirements Must Be Met to Qualify for Arkansas Medicaid?

Eligibility for Medicaid’s long-term care programs depends on both financial and medical factors. Income and asset limits vary depending on marital status, the program applied for, and change annually.

What Are the 2025 Income and Asset Limits for Arkansas Medicaid Long-Term Care?

To qualify for Nursing Home Medicaid as a single applicant in 2025:

• Income must be below $2,901 per month
• Assets must be under $2,000
• The individual must require a Nursing Facility Level of Care

Failing to meet all criteria does not automatically disqualify someone from Medicaid, as alternative pathways exist.

*Most of a Medicaid recipient’s income must go toward the cost of care, except for certain deductions.

What Types of Income Are Counted Toward Medicaid Eligibility in Arkansas?

Almost all forms of income are included—wages, Social Security, pensions, IRA withdrawals, and gifts. However, certain payments like Holocaust reparations and VA Aid and Attendance are not counted.

How Is Income Treated for Married Couples Applying for Medicaid?

When only one spouse applies for Nursing Home Medicaid or a waiver, the other spouse’s income is not counted. The non-applicant may also be entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA) of up to $3,948/month in 2025, depending on their income and shelter costs.

For ABD Medicaid, both spouses’ incomes are considered, and the MMMNA does not apply.

Which Assets Count Toward Medicaid Eligibility, and Which Are Exempt?

Countable assets include:

• Cash
• Bank accounts
• Investments
• Secondary real estate
• Retirement accounts like IRAs and 401(k)s

Exempt assets include:

• One primary residence
• Personal effects
• One vehicle
• Burial funds
• Life insurance without cash value

How Does Arkansas Medicaid Treat Assets for Married Couples?

All assets are considered jointly owned. For Nursing Home and HCBS Waiver applicants, the non-applicant spouse may keep up to $157,920 of the couple’s assets. If the couple’s total assets are below $63,168, the non-applicant spouse may keep all of it, up to $31,584. There is no asset protection allowance for ABD Medicaid.

What Is the Medicaid Look-Back Period and How Does It Affect Eligibility?

Arkansas uses a 60-month (5-year) look-back period to examine asset transfers for Nursing Home Medicaid and waivers. Any gifts or sales below market value during this time may result in a penalty period of ineligibility. This rule does not apply to ABD Medicaid.

Gifting under the federal gift tax limit (e.g., $19,000 per recipient in 2025) is still subject to Medicaid penalties.

When Is a Home Exempt from Medicaid’s Asset Limit in Arkansas?

A home is exempt if the applicant or their spouse lives there. If no spouse lives in the home, the applicant must show an intent to return, and home equity must be below $730,000 in 2025. There is no equity cap for ABD Medicaid.

What Happens to a Home After a Medicaid Recipient Passes Away?

Although a home may be exempt while the person is alive, it is not protected from Arkansas Medicaid’s Estate Recovery Program after death. Unless proper planning is done, Medicaid can seek reimbursement from the home’s value.

What Medical Conditions or Functional Needs Are Required to Qualify?

For Nursing Home Medicaid and waivers, an applicant must require a Nursing Facility Level of Care (NFLOC). For ABD Medicaid, a need for assistance with daily living tasks (ADLs) is sufficient, even without a full NFLOC designation.

Can Seniors Qualify for Medicaid If Their Income or Assets Are Too High?

Yes. Arkansas offers multiple pathways for seniors who exceed income or asset limits to still qualify.

What Is the Medically Needy Pathway and How Does It Work in Arkansas?

The Medically Needy or “Spend Down” option allows individuals to subtract medical expenses from their income. Once their “spend down” amount is met, they become eligible. In 2025:

• MNIL: $108.33/month (single) or $216.66/month (couple)
• Asset limits: $2,000 (individual), $3,000 (couple)

How Do Qualified Income Trusts Help Applicants Qualify for Medicaid?

Arkansas allows applicants to use Qualified Income Trusts (QITs), also called Income Trusts, to deposit excess income. Funds in a QIT do not count toward income eligibility, but must follow strict spending rules.

What Is the Asset Spend Down Process for Medicaid Eligibility?

Applicants may reduce countable assets by purchasing exempt items—like home modifications, burial plans, or paying off debt—to become eligible. However, gifting assets violates the 5-year look-back rule and may result in penalties.

What Is Medicaid Planning and How Can It Help Seniors Qualify?

Medicaid planning can help individuals restructure finances to meet eligibility and avoid losing assets to estate recovery. Professional planners can guide families through legal and ethical strategies to protect their homes and life savings.

What Medicaid Programs in Arkansas Help Seniors Stay at Home?

In addition to nursing home coverage, Arkansas Medicaid offers several programs for seniors who want to remain in their homes or communities.

ARChoices in Homecare Waiver

This program offers supportive services such as adult day care, home modifications, personal care, and more. It includes Independent Choices, which gives participants a cash allowance to hire caregivers—including some family members.

Living Choices Assisted Living Waiver

This waiver does not cover room and board but does pay for personal care, medication oversight, transportation, and nursing evaluations in assisted living facilities.

Medicaid State Plan Personal Care Program

This program helps with tasks like dressing, grooming, meal prep, housekeeping, and more. Through Independent Choices, participants can manage their own care and choose caregivers, excluding spouses and legal guardians.

Program of All-Inclusive Care for the Elderly (PACE)

PACE combines Medicaid and Medicare services into one package, offering comprehensive care including medical, dental, and sometimes vision services.

Money Follows the Person Program

This federal initiative helps people transition from nursing homes or institutions back into the community with support services and planning assistance.

How Can Seniors Apply for Medicaid in Arkansas?

Applications can be submitted:

• Online: Access Arkansas
• In-person or by mail: At a local DHS office
• By phone: 501-682-1001

Local Area Agencies on Aging may also assist. Applicants should ensure eligibility criteria are met, especially regarding income and assets. Those above the limits should consider Medicaid planning before applying.