It seems like everyone I’ve ever spoken to, with very little exception, is familiar with ‘the $2,000 rule.’ It states that an applicant for Medicaid cannot have more than $2,000 in countable assets when qualifying for the benefit. This has been the unwavering limit since 1989. That’s 36 years without a single increase. I honestly didn’t think I’d see this number increase in my lifetime, regardless of the cost-of-living increases, but I’m glad to say I was wrong.

In a significant policy shift, the Michigan Department of Health and Human Services (MDHHS) has increased the asset limits for Medicaid eligibility, effective February 1, 2025. This change aims to broaden access to healthcare services for Michigan residents by allowing individuals and couples to retain more assets while qualifying for Medicaid benefits.
State of Michigan | Michigan.gov | Great Lakes PACE Medicaid Planning Assistance

Key Changes to Asset Limits

• Individuals: The asset limit has risen from $2,000 to $9,660.
• Married Couples: The asset limit has increased from $3,000 to $14,470.

These adjustments align the asset limits with those of the Medicare Savings Program (MSP). Maybe even more notably, these limits will now adjust annually in accordance with cost-of-living adjustments to the MSP asset limits.
MDHHS | State of Michigan | Michigan.gov

Implications for Michigan Residents

This policy change is poised to have a profound impact on Medicaid accessibility in Michigan:

• Enhanced Eligibility: By permitting higher asset retention, more individuals and couples may now qualify for Medicaid, ensuring access to essential healthcare services without necessitating the complete depletion of personal savings.
• Financial Security: Beneficiaries can maintain a more substantial financial cushion, providing greater stability and peace of mind while receiving medical assistance.

For a comprehensive list and detailed information, refer to the MDHHS policy bulletin:
State of Michigan | Michigan.gov | State of Michigan | Michigan.gov

Looking Ahead

This policy update reflects Michigan's commitment to improving healthcare accessibility and financial security for its residents. By aligning Medicaid asset limits with those of the MSP and implementing annual adjustments, the state ensures that assistance programs remain responsive to economic changes and the needs of its population.