If you are thinking about Medicaid for long-term care, you may worry about what will happen to your spouse. Many people believe applying for Medicaid will strip their husband or wife of savings and income.
The good news is that New York’s Medicaid rules include specific protections to prevent spousal impoverishment. With proper planning, you can qualify for help paying for care while your spouse keeps essential resources.
Spousal Impoverishment Protections in New York
Federal law requires every state to follow spousal impoverishment rules. These rules set minimum amounts of income and assets your spouse can keep.
New York has adopted these protections and updates them each year to reflect inflation. In 2025, the allowances help many couples preserve stability during a difficult time.
There are two main components to these rules. The first is the Community Spouse Resource Allowance (CSRA), which deals with assets.
The second is the Monthly Maintenance Needs Allowance (MMMNA), which addresses income. Knowing how each works can help you make informed decisions.
Community Spouse Resource Allowance (CSRA)
The CSRA is the amount of countable assets your spouse can keep when you apply for Medicaid. These assets include bank accounts, investments, and similar resources. They do not include exempt property, like your primary residence (within equity limits) or personal belongings.
New York sets both a minimum and a maximum CSRA. In 2025, the minimum CSRA is $74,820, and the maximum is $157,920.
Medicaid calculates this amount by assessing your combined countable resources on the “snapshot date,” usually when you enter a hospital or nursing home for at least 30 days.
New York uses the 50 percent rule. Your spouse can keep half of the total countable assets, as long as that figure is not less than the minimum or more than the maximum.
For example, if you and your spouse have $120,000 in countable assets, half is $60,000. Because that is below the minimum, your spouse can keep $74,820.
If you have $300,000, half is $150,000, which is within the allowed range. For $400,000, your spouse can keep only the maximum of $157,920.
These figures help ensure your spouse has a base level of assets to cover living expenses.
Monthly Maintenance Needs Allowance (MMMNA)
While the CSRA protects assets, the MMMNA protects a portion of your income. When you enter a nursing home, Medicaid requires you to contribute most of your monthly income to the cost of care. However, your spouse is entitled to a minimum income to maintain independence.
In 2025, the standard MMMNA in New York is $3,948 per month. If your spouse’s own income falls below that amount, a portion of your income can be transferred to meet the threshold.
For example, if your spouse has $2,000 in monthly income, they are entitled to $1,948 from your income to reach $3,948.
This allowance helps your spouse pay for rent, groceries, and other expenses without relying solely on savings.
Medicaid Asset Limit
When you apply for Medicaid in New York as an individual, your countable assets cannot exceed $31,175 in 2025. After your spouse’s CSRA share is calculated, any excess assets must be reduced to qualify.
This is often called “spending down.” You can reduce countable assets by paying for care, making exempt purchases, or using other planning strategies.
Spend-Down and Look-Back Period
Many families use spend-down strategies to qualify without wasting resources. Common approaches include prepaying funeral expenses, making home improvements, buying exempt personal property, or paying off debt.
In some cases, converting assets into income with a Medicaid-compliant annuity may be an option.
Be aware of New York’s five-year look-back period. Medicaid reviews transfers made within five years of your application.
Transfers for less than fair market value can trigger a penalty period when Medicaid will not cover your care. Careful planning and documentation are essential to avoid delays.
When to Seek Legal Help
Navigating Medicaid eligibility is complex. Each decision you make affects your spouse’s financial security. An elder law attorney can help you:
- Calculate the CSRA and MMMNA correctly
- Plan exempt transfers and purchases
- Prepare and file your application
- Avoid penalties and delays
In Manhattan, where care costs are high and the system moves quickly, legal guidance can save time and reduce stress.
Learn More!
If you would like to learn more about Medicaid planning and other important aspects of the estate planning process, attend one of our live webinars or view our on-demand webinar. There is no charge, and you can gain access here: Manhattan, NY estate planning webinars.
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