- A Medicare Savings Program can help qualifying Medicare beneficiaries in Minnesota pay for premiums and cost-sharing.
- Applicants in Minnesota can qualify for Medicaid ABD with incomes up to $1,063 a month if single and $1,437 a month if married.
- Minnesotans who have incomes above the limit for Medicaid ABD can enroll in the Medicaid spend-down.
- The income limits for Medicaid nursing home coverage in Minnesota are $2,349 a month if single and $4,698 a month if married and both spouses are applying.
- In Minnesota, the income limit for HCBS is $2,349 a month if single and $4,698 a month if married and both spouses apply.
- In Minnesota in 2020, spousal impoverishment rules allow the spouse of a Medicaid LTSS recipient to keep an allowance of up to $3,216 per month if they don’t have Medicaid themselves.
- Minnesota requires applicants for Medicaid nursing home care or HCBS to have no more than $595,000 in home equity.
- Applicants for Medicaid LTSS in Minnesota will incur a penalty if they transfer or give away assets for less than their value in the five years before applying for benefits.
- Minnesota tries to recover from the estates of beneficiaries who received Medicaid LTSS benefits at age 55 or older.
The state where you lives makes a difference in how much you pay as a Medicare beneficiary. This page explains how Minnesota’s regulations and policies are likely to affect your bottom line. The information below lists resources available to help eligible Minnesota residents pay for Medicare premiums and cost-sharing. It also provides an overview of Medicaid programs that help qualifying individuals pay for long-term care, which is not generally covered by Medicare.
Does Minnesota help with my Medicare premiums?
Many Medicare beneficiaries who struggle to afford the cost of Medicare coverage are eligible for help through a Medicare Savings Program (MSP). Minnesotans may qualify for help paying for Medicare Part A and B premiums as well as Medicare Part A and B cost-sharing.
- Qualified Medicare Beneficiary (QMB): The income limit is $1,063 a month if single or $1,437 a month if married. QMB pays for Part A and B cost sharing, and Part B premiums. If a beneficiary is required to pay Part A premiums, QMB pays for them, too.
- Specified Low Income Medicare Beneficiary (SLMB): The income limit is from QMB levels up to $1,276 a month if single or $1,724 a month if married. SLMB pays for Part B premiums.
- Qualified Individuals (QI): The income limit is from SLMB levels up to $1,436 a month if single or $1,940 a month if married. QI pays for Part B premiums.
- Qualified Working Disabled Working Individuals (QDWI): The income limit is $2,126 a month if living alone and $2,873 a month if living with one other person. QDWI pays the Part A (but not Part B) premiums owed by certain disabled beneficiaries who have returned to work. (Note that few are eligible for this program – and those who do qualify often instead choose to enroll in the Medicaid “buy-in” for Working People with Disabilities.)
MSP asset limits: The asset limit for QMB, SLMB and QI is $10,000 if single and $18,000 if married. QDWI’s asset limit is $4,000 if living alone and $6,000 if living with another person.
The income and asset limits for QMB, SLMB and QI vary based on an applicant’s marital status, but eligibility rules for QDWI, Medicaid for the aged, blind and disabled (ABD), and Long Term Services and Supports (LTSS) vary based on the number of household members (and not marital status).
Who's eligible for Medicaid for the aged, blind and disabled in Minnesota?
Medicare covers many services – including hospitalization, physician services, and prescription drugs – but can leave enrollees with significant out-of-pocket costs (i.e., deductibles, co-pays, and coinsurance). Original Medicare also does not cover important services like vision and dental benefits, although Medicare Advantage plans sometimes do offer this coverage.
Medicare enrollees with low incomes and assets can receive coverage for Medicare cost sharing and additional services like vision and dental care if they’re enrolled in Medicaid ABD.
Medicaid ABD benefits don’t ordinarily cover Long Term Services and Supports (LTSS). Applicants seeking those services usually have to complete a separate application, undergo an assessment, and meet different income and asset limits.
Medicaid is called Medical Assistance (MA) in Minnesota.
Income eligibility: The income limit is $1,064 a month if single and $1,438 a month if married.
Asset limits: The asset limit is $3,000 if single and $6,000 if married.
Medicaid spend-down for Medicaid for the aged, blind and disabled and LTSS
Applicants who are over-income for Medicaid ABD benefits can by enrolling in the Medicaid spend-down. This program allows applicants to subtract incurred medical expenses from their income that is counted toward the Medicaid income limit.
Spend-down benefits are usually approved in six-month increments, with additional coverage requiring new medical expenses to be submitted.
The Medicaid spend-down in Minnesota covers Long Term Services and Supports (LTSS).
Income eligibility: The income limit is $862 a month if single and $1,161 a month if married.
Asset limits: The asset limit is $3,000 if single and $6,000 if married.
How does Minnesota regulate long-term services and supports (LTSS)?
Twenty percent of Medicare beneficiaries who lived at home received some assistance with LTSS in 2015, and the portion of seniors needing these services will rise as the population ages. And while Medicare beneficiaries increasingly rely on long-term care, it is generally not covered by Medicare. Medicaid provides long-term service and supports (LTSS), but its complex eligibility rules can make qualifying for benefits difficult.
Medicaid nursing home coverage
Income limits: The income limit is $1,064 a month if single and $1,438 a month if married and both spouses are applying.
When only one spouse needs Medicaid coverage for nursing home care, the income limit for single applicants is used and usually only the applying spouse’s income is counted.
However, this doesn’t mean nursing home enrollees can keep all of their income up to this limit. Enrollees must pay nearly all their income to their nursing home, other than a small personal needs allowance (of $104 a month) and money to pay for health insurance premiums (such as Medicare Part B and Medigap).
Assets limits: The asset limit is $3,000 if single and $6,000 if married (and both spouses are applying). If only one spouse has Medicaid, the other spouse can keep up to $128,640 — although not all assets are counted against this limit.
Home and Community Based Waiver (HCBS) services
Every state’s Medicaid program covers community-based LTSS services for applicants who are still able to live safely at home with some assistance. Medicaid programs that pay for this type of support are called Home and Community Based Services (HCBS) waivers.
Income limits: The income limit is $2,349 a month if single and $4,698 a month if married (and both spouses are applying).
When only one spouse needs HCBS, the income limit for single applicants is used and typically only the applicant’s income is counted.
Asset limits: The asset limit is $3,000 if single and $6,000 if married (and both spouses are applying). If only one spouse has Medicaid, the other spouse can keep up to $128,640.
Spousal impoverishment protections in Minnesota
Spousal impoverishment rules allow the “community spouse” of a Medicaid LTSS beneficiary to keep a Minimum Monthly Maintenance Needs Allowance (MMMNA) from their spouse’s income. This provision is especially helpful for community spouses of nursing home enrollees, who have to pay nearly all their income toward their care.
In Minnesota in 2020, these spousal impoverishment rules allow community spouses to keep:
- An MMMNA that is between $2,155 and $3,216 per month.
- A Community Spouse Resource Allowance (CSRA) of up to $128,640.
- A housing allowance of up to $645.50 a month.
Medicaid home equity limit in Minnesota
Federal law requires states to limit eligibility for Medicaid nursing home and HCBS to applicants with a home equity interest below a specific dollar amount. In 2020, states set this home equity level based on a federal minimum of $595,000 and maximum of $893,000.
Minnesota has chosen to use the most restrictive limit on home equity – meaning Medicaid LTSS beneficiaries can have no more than $595,000 in equity.
Penalties for transferring assets in Minnesota
Because long-term care is expensive, individuals may consider transferring their assets to meet eligibility requirements for Medicaid LTSS. To curb these asset transfers, federal law requires states to have a penalty period for applicants for Medicaid nursing home care if they give away or transfer assets for less than their value. States can choose to also have a penalty period for HCBS.
Minnesota has chosen to have a penalty period that applies to both nursing home care and HCBS. The penalty period’s length is based on the value of the asset transfers or gifts made during the 60 months before receiving Medicaid. This penalty is calculated by dividing the value of what was transferred or given away by the monthly cost of nursing home care (which is $8,412 in Minnesota in 2020). Medicaid will not cover an applicant’s LTSS during this period.
Estate recovery in Minnesota
State Medicaid agencies must attempt to recover what they paid long-term care related costs while a beneficiary was 55 or older. States can also recover the cost of other Medicaid benefits (in addition to LTSS).
Minnesota recovers from the estates of beneficiaries who received Medicaid coverage for LTSS beginning at the age of 55. The state also recovers what Medicaid spent on care for enrollees under 55 who were permanently institutionalized (and it recovers the cost of everything Medicaid covered for those enrollees).
When Medicaid coverage was administered by a Managed Care Organization (i.e., a private insurer contracted to provide Medicaid benefits), the state will attempt to recover what it paid that MCO. That means the estate recovery amount could be more or less than the actual cost of Medicaid services received.
Minnesota will delay its estate recovery if a beneficiary is survived by either their spouse or a child who is under 21 or disabled. If this happens, estate recovery would occur after the spouse’s death or once the child turns 21 or is no longer considered disabled.
Congress exempted Medicare premiums and cost sharing from Medicaid estate recovery starting with benefits paid after December 31, 2009, but Medicaid may try to recover what it paid for MSP benefits through that date. In Minnesota, this could occur only if the enrollee received LTSS.
This Department of Human Services (DHS) brochure explains the estate recovery rules in Minnesota.
Where can Medicare beneficiaries get help in Minnesota?
Senior LinkAge Line
Free volunteer Medicare counseling is available by contacting the Senior LinkAge Line at 1-800-333-2433. Senior LinkAge Line can help beneficiaries enroll in Medicare, compare and change Medicare Advantage and Part D plans, and answer questions about state Medigap protections. Counselors may also be able to offer referrals to local agencies for services like home care and long-term care. The Senior LinkAge Line’s website has more information about services it offers.
Elder Law Attorneys
Elder law attorneys can advise individuals on Medicaid long-term care benefits. The National Academy of Elder Law Attorneys (NAELA) has a search feature to help beneficiaries connect with an elder attorney.
Minnesota Area Agencies on Aging (AAAs)
The Area Agencies on Aging (AAAs) in Minnesota can provide information about LTSS and help individuals plan for their long-term care needs. This is a list of AAAs throughout the state.
Where can I apply for Medicaid in Minnesota?
Medicaid in Minnesota is administered by the Department of Human Services (DHS). Separate websites have instructions for seniors and people with disabilities who need Medicaid or a Medicare Savings Program.
Josh Schultz has a strong background in Medicare and the Affordable Care Act. He coordinated a Medicare technical assistance contract at the Medicare Rights Center in New York City, and represented clients in extensive Medicare claims and appeals. In addition to advocacy work, Josh helped implement federal and state health insurance exchanges at the technology firm hCentive. He has also held consulting roles, including at Sachs Policy Group, where he worked on Medicaid and Medicare client projects.