Elder Law

MO HealthNet Home Equity Limits

According to the Deficit Reduction Act of 2005*, individuals are limited in the exemption for their home to the extent their equity is less than $500,000 (states have the option of raising this limit to $750,000). However, beginning in January, 2011, MO HealthNet's home equity limits are indexed for inflation by the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U). 

Currently, the home equity limit is $506,000 and the maximum is $758,000.

*(a) In General- Section 1917 of the Social Security Act , as amended by section 6012(a), is further amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

(f)(1)(A) Notwithstanding any other provision of this title, subject to subparagraphs (B) and (C) of this paragraph and paragraph (2), in determining eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services, the individual shall not be eligible for such assistance if the individual's equity interest in the individual's home exceeds $500,000.
(B) A State may elect, without regard to the requirements of section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), to apply subparagraph (A) by substituting for `$500,000', an amount that exceeds such amount, but does not exceed $750,000.

(C) The dollar amounts specified in this paragraph shall be increased, beginning with 2011, from year to year based on the percentage increase in the consumer price index for all urban consumers (all items; United States city average), rounded to the nearest $1,000.