Eligibility for Medicaid long-term care in Michigan is determined by both financial and non-financial criteria. Financially, the applicant must pass the asset and income limit, and medically, the applicant must require a level of care typically provided in a nursing home.
For 2025, an individual must have a monthly income under $2,901. For married couples, the income of the non-applicant spouse is not taken into account.
An individual can have up to $9,660 in countable assets, not including a primary residence, one vehicle, and personal belongings. Almost all other assets are countable.
If one spouse is applying for Medicaid long-term care, the other spouse may keep 50% of the couple's assets up to $157,920.
The Department of Health and Human Services (DHHS) looks at each individual's countable assets at the time his or her application is filed, as well as any transfers involving their assets over a 5-year look-back period. The transfer of assets or income within that 5-year look-back period for less than fair market value is called a "divestment," and a divestment often creates penalties related to the timing of Medicaid payments. Transfers to a revocable trust or to a spouse are NOT considered divestments. A divestment penalty may be undone if all of the transferred resources are returned to the applicant or fair market value is paid before the penalty period starts.
