Assessment and Designation of Resources: Nebraska's Spousal Impoverishment Protection Law (1989)

What would happen if your spouse was not able to live at home due to poor health or confusion?

Would you have to spend all of your resources to pay for your spouse's nursing home care?

For Example:
Barney is not able to take care of Betty at home any more, due to her health. He is thinking about admitting her to the long-term care facility (nursing home) down the street.

• They own about $100,000 in resources (assets).
• Their total income is $1,600 per month

QUESTION: Does Barney have to spend all of their money before the state helps pay for Betty's care?

ANSWER: NO - because of the Spousal Impoverishment Protection Law.

The Spousal Impoverishment Protection Law (1989)
This federal law protects spouses of nursing home residents from losing all of their income and assets to pay for the spouse's nursing home care. A couple's assets and income are divided according to this law.

Medicaid
This government insurance program helps people with low finances. To get Medicaid help for nursing home care, the assets of the person needing help must be at $4,000 or less. Medicaid is handled by Nebraska's Department of Health and Human Services.

Assessment of Assets (under the Spousal Impoverishment Protection Law)
Most assets (such as bank accounts, stocks, bonds, etc.) are considered joint assets between husband and wife. (It doesn't matter in whose name they are placed.) The Assessment of Assets is not a split of assets.

QUESTION: What amount of the couple's assets is the spouse at home allowed to keep?

ANSWER: Maximum - At least half of all countable assets, up to a total of $81,960 in 1999. Minimum - At least $16,392 in 1999.

For Example:
The total assets owned by Barney and Betty are $100,000. Half of Barney and Betty's assets are $50,000. Barney is able to keep $50,000.

The couple would need to spend the remaining $50,000 down to $4,000 before Medicaid would begin to help pay for Betty's nursing home costs. An application for Medicaid is required when the couple has spent down their assets to the appropriate level.

In addition to half of the countable assets, the couple may also keep their home, one automobile and their household furnishings. The couple may also prepay their funeral expenses.

Income (under the Spousal Impoverishment Protection Law)

• At-Home Spouse
  Income in your name remains your own (Social Security, pensions, interest, dividends, etc.). The spouse at home may keep all of his/her personal income.
• Nursing Home Spouse
  The spouse in the nursing home may be required to use most of his or her income to pay for care, except for a personal allowance of $40 per month ($50 per month, effective 9/1/99) and $90 per month for veterans.

After the income has been split, the At-Home Spouse may be able to keep more of the Nursing Home Spouse's income, IF…

• The spouse at home gets less than $1,383 every month (as of 3/1/99).
• The spouse at home has to pay rent, mortgage or utilities.
  

For Example:
Barney may keep all of his income (checks made out in his name, plus his half of the income that is jointly owned). Remember, if Barney's income was lower than $1,383 per month, then he could keep part of Betty's income.

Checks made out in Betty's name, plus her half of any jointly owned income, would be considered hers and would go to the nursing home to pay for her care, unless a portion is needed for Barney. (Betty may have $40 from her income each month, as her allowance for personal needs.) Betty will also continue to pay her Medicare Supplement insurance premium with her income.

Compiled by the Lincoln/Greater Nebraska Chapter of the Alzheimer's Association, 1999.