Michigan

What Is Michigan Medicaid and Who Does It Help?

Michigan Medicaid, also known as Medical Assistance (MA), is a state and federally funded program that provides health care services to low-income individuals and families. Our focus here is on benefits available to seniors aged 65 and older. Michigan Medicaid covers not only nursing home care but also offers support for seniors who wish to live at home, in assisted living, or in adult foster care settings.

What Types of Long-Term Care Medicaid Programs Are Available in Michigan?

What Is Institutional / Nursing Home Medicaid?

This program is an entitlement, meaning all who meet the eligibility criteria are guaranteed benefits. Services are limited to care provided within nursing homes.

What Are Medicaid Waivers or Home and Community-Based Services?

These waivers are not entitlements, so slots are limited and waiting lists may exist. The aim is to delay or avoid institutionalization by offering care at home, in assisted living, adult day care, or foster care environments.

What Is Regular Medicaid for the Aged and Disabled?

This is also an entitlement program. Seniors who meet financial and functional requirements can access services such as help with personal care and adult day programs.

What Are the 2025 Financial Eligibility Guidelines for Michigan Medicaid Long-Term Care?

*Applicants must contribute all income above a small personal allowance toward care costs. Medicaid may also deduct Medicare premiums and a spouse’s support allowance.

What Income Counts Toward Medicaid Eligibility?

What Is Considered Countable Income?

Most income sources are considered, such as wages, pensions, Social Security, and investment earnings. Exceptions include Holocaust restitution and certain VA benefits.

How Is Income Evaluated for Married Couples?

When only one spouse applies for long-term care Medicaid, the other spouse’s income is usually not considered. However, the non-applicant spouse may be entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA), which in 2025 is set at $2,643.75 and can go up to $3,948 depending on shelter costs.

What Assets Count Towards Medicaid Eligibility?

What Are Countable and Non-Countable Assets?

Countable assets include cash, savings, stocks, and property not lived in. Exempt items often include personal belongings, one vehicle, and the primary home (under certain conditions).

How Are Assets Handled for Couples?

All assets are considered jointly owned. In 2025, the community spouse can keep up to $157,920, or all assets up to $31,584 if that 50% share is below this threshold.

What Is the Medicaid Look-Back Period?

Michigan enforces a 5-year look-back period for asset transfers. Violations may result in a penalty period where Medicaid coverage is denied. The IRS gift tax exclusion does not override Medicaid rules.

When Is a Home Exempt Under Medicaid Rules?

The applicant or their spouse must live in the home for it to be exempt. If not, the applicant must express an intent to return. Home equity must be below $730,000 in 2025. However, the home is still subject to estate recovery after the beneficiary passes away.

What Medical Criteria Must Be Met?

Applicants must show a need for long-term care. For Nursing Home Medicaid and Waivers, a Nursing Facility Level of Care (NFLOC) is required. For Regular Medicaid, help with daily living activities (ADLs) is necessary, though NFLOC is not required.

Can Someone Qualify If Over the Financial Limits?

What Is the Medically Needy Pathway?

Those with income above the limit may qualify by spending down income on care. For example, the medically needy income limit (MNIL) is $1,305 for individuals and $1,763 for couples in 2025.

How Does Asset Spend Down Work?

Applicants may become eligible by using excess assets on non-countable items, such as home improvements or medical devices. All spending should be documented to avoid penalties.

What Is Medicaid Planning?

Many applicants need guidance to qualify. Medicaid Planners help families reduce countable income and assets while protecting property, like a family home, from estate recovery.

What Special Programs Does Michigan Offer?

MI Choice Waiver

This HCBS program helps seniors at risk of nursing home placement remain at home with services like day care, home modification, and caregiver respite.

MI Health Link

A managed care program for people eligible for both Medicaid and Medicare. Offers personal assistance, meal delivery, and other services. Not available statewide.

Home Help Program

Part of Regular Medicaid, this benefit supports in-home care with tasks like bathing, cleaning, and laundry for those who qualify.

PACE Program

This program combines Medicaid and Medicare benefits into a single coordinated care package that may also include dental and vision services.

Community Transition Services Program

CTS assists nursing home residents with returning to a home or community-based living arrangement like assisted living or adult foster care.

How Can One Apply for Michigan Medicaid?

Applications can be submitted through a local MDHHS office. Help is also available through Area Agencies on Aging. Because the process can be complex, especially for those over the income or asset limits, applicants are strongly encouraged to seek professional Medicaid planning advice before applying.