A Medicaid myth worth retiring: you may not have to spend down everything

One of the most damaging myths in caregiving is that a family has to drain nearly every dollar before Medicaid will help pay for a loved one’s long-term care. For married couples especially, that’s often not true, and the 2026 numbers make it even less so.

What changed

Medicaid has long-standing “spousal impoverishment” protections, designed so that when one spouse needs Medicaid-funded long-term care, the other isn’t left with nothing. Those protected amounts are adjusted each year, and for 2026 they rose:

• The maximum Community Spouse Resource Allowance, the assets the healthy spouse can keep, increased to about $162,660.[1]
• The minimum allowance rose to roughly $32,532.[1]

There are also monthly income protections (the Minimum Monthly Maintenance Needs Allowance) that let the at-home spouse keep a certain level of income.[1] The exact figures and how they apply depend on your state and situation.

Why it matters

Many families never apply for help they’d actually qualify for, because they assume they’re “too well off” or that applying means losing everything. Often it doesn’t. If you’re facing the cost of nursing-home or in-home long-term care for a spouse, this is exactly the moment to talk to an elder-law attorney or a Medicaid planning specialist before spending down savings you may be entitled to keep.

And keep an eye on renewals: some states are tightening asset-reporting requirements in 2026, so don’t assume coverage continues automatically, respond to every notice.[1]