Medicaid Long-Term Care Guide in Connecticut

• Nearly any income from any source is counted towards the income limit, including employment wages, alimony, pension payments, SSDI, SSI, IRA withdrawals, and stock dividends.
• Nationally, Holocaust restitution payments are not counted as income.
• In CT, the VA Aid & Attendance pension, which is above and beyond the Basic VA Pension, does not count.
• For Nursing Home Medicaid, income must be less than the cost of nursing home care — there is no fixed income limit.
• When only one spouse applies for Nursing Home Medicaid or a Medicaid Waiver, only the applicant's income is counted.
• The non-applicant spouse may be entitled to a Minimum Monthly Maintenance Needs Allowance (MMMNA) of $2,643.75 (eff. 7/1/25 – 6/30/26).
• A non-applicant spouse can increase their Spousal Income Allowance if housing/utility costs exceed the 'shelter standard' of $793.13 / month, but it cannot exceed $4,066.50 / month (Maximum MMNA).
• For Regular Medicaid, the income of both spouses is counted. There is no MMMNA for the non-applicant spouse.

Connecticut is unique in that Nursing Home Medicaid has no fixed income limit — income must simply be less than the cost of nursing home care.

• Countable assets include cash, stocks, bonds, investments, promissory notes, cryptocurrency, bank accounts, and real estate in which one does not reside.
• In Connecticut, IRAs are counted.
• Non-countable (exempt) assets include personal belongings, household furnishings, an automobile, a burial plot, an irrevocable prepaid funeral contract (limited to $10,000 in 2026), term life insurance with no cash surrender value, and generally one's primary home.
• All assets of a married couple are considered jointly owned regardless of which program one applies for.
• The Community Spouse Protected Amount (CSPA) allows the non-applicant spouse to keep 50% of the couple's assets, up to $162,660.
• If 50% of the couple's assets falls under $50,000, the non-applicant spouse can keep all assets up to $50,000. Connecticut's $50,000 minimum CSPA is higher than the federal minimum of $32,532.
• There is no CSRA for Regular Medicaid.

Connecticut uses a $1,600 individual asset limit (lower than the $2,000 used by most states) and a higher CSPA minimum of $50,000.

• The primary home is automatically exempt if the applicant's spouse, child under 21, or permanently blind or disabled child (of any age) lives in it.
• If this is not the case, there is a home equity interest limit of $1,097,000 (in 2026).
• Home equity is the value of the home minus any outstanding debt. Equity interest is the amount of equity owned by the applicant.
• If neither the applicant nor qualifying family live in the home, the applicant must have Intent to Return.
• There is no home equity interest limit for Regular Medicaid.
• The home is NOT exempt from Medicaid's Estate Recovery Program. After a beneficiary's death, Connecticut's Medicaid agency attempts reimbursement of care costs through the deceased's estate.
• Without proper planning strategies, the home will be used to reimburse Medicaid rather than going to family as inheritance.

Connecticut uses the higher home equity interest limit of $1,097,000 (2026).

• Connecticut has a 60-month (5-year) Look-Back Period for Nursing Home Medicaid and Medicaid Waivers that immediately precedes the application date.
• During the look-back, Medicaid checks all past transfers. If assets were gifted or sold under fair market value, it is assumed this was done to meet Medicaid's asset limit.
• Violations result in a Penalty Period of Medicaid ineligibility.
• The Look-Back Rule does NOT apply to Regular Medicaid.
• The U.S. Federal Gift Tax Rule ($19,000 per recipient in 2026) does not extend to Medicaid eligibility — gifting under this rule still violates the Look-Back Period.

• MMMNA: $2,643.75 · CSRA: $162,660 · CSRA Min: $50,000
• When only one spouse applies for Nursing Home Medicaid or a Medicaid Waiver, only the applicant's income is counted.
• The non-applicant spouse may receive a Minimum Monthly Maintenance Needs Allowance (MMMNA) of $2,643.75 (eff. 7/1/25 – 6/30/26).
• The Spousal Income Allowance can increase if housing/utility costs exceed the 'shelter standard' of $793.13 / month, but cannot exceed $4,066.50 / month (Maximum MMNA).
• The Community Spouse Protected Amount (CSPA) allows the non-applicant spouse to keep 50% of the couple's assets, up to $162,660.
• Connecticut's minimum CSPA is $50,000 — higher than the federal minimum of $32,532.
• For Regular Medicaid, both spouses' income is counted and there is no MMMNA or CSPA.

• Medically Needy Pathway — Connecticut has a Medical Spend-Down Program for seniors over the income limit. The medically needy income limit (MNIL) is $835 / month for a single applicant and $1,128 / month for a couple (eff. 3/1/25). The spend-down is calculated for a 6-month period. Once met, one is income-eligible for the remainder of the period. The medically needy asset limit is $1,600 for an individual and $2,400 for a couple.
• Pooled Income Trusts — Disabled seniors in CT applying for a Medicaid Waiver who have income over the limit can deposit 'excess' income into a Pooled Income Trust. Income deposited does not count towards Medicaid's income limit, but trust funds can only be used for limited purposes such as paying the recipient's bills. Upon death, remaining funds must be paid to CT's Medicaid agency.
• Asset Spend-Down — Spend excess assets on non-countable items such as home modifications (wheelchair ramps, stair lifts), prepaying funeral/burial expenses, and paying off debt. Keep documentation as proof the Look-Back Rule was not violated.
• Medicaid Planning — Work with a Medicaid Planning Professional to become eligible and protect your home from Medicaid's Estate Recovery Program.

Connecticut uses Pooled Income Trusts rather than Qualified Income Trusts (Miller Trusts) as an income planning tool for waiver applicants.