Medicaid Standards for SSI and Spousal Impoverishment Released for 2025

New Centers for Medicare and Medicaid Services (CMS) Updates Will Take Effect on January 1, 2025

2025 SSI Federal Benefit Rate Increases 2.5%

The maximum federal Supplemental Security Income (SSI) benefit rate for 2025 is $967 per month for an eligible individual, and $1,450 per month for an eligible couple. These amounts are the result of a 2.5% cost-of-living increase (COLA) that takes effect in January 2025. 

2025 Medicaid Spousal Impoverishment and Home Equity Updates: Key Changes to Know

As we near 2025, it's essential to stay informed about the updated Medicaid spousal impoverishment figures and home equity limits recently announced by CMS. These updates are critical for families navigating long-term care planning and Medicaid eligibility. Here's what you need to know:

Spousal Resource Protection Updates

For married couples where one spouse requires Medicaid-funded care, the 2025 Community Spouse Resource Allowance (CSRA) offers financial protection for the healthy spouse (known as the “community spouse”):

• Maximum Allowance: Increased to $157,920 (from $154,140 in 2024).
• Minimum Allowance: Raised to $31,584 (from $30,828 in 2024).

These adjustments help ensure the community spouse retains enough assets for their financial stability.

Monthly Income Needs for Community Spouses

Another critical update is the 2025 Monthly Maintenance Needs Allowance (MMNA), which safeguards a portion of the couple's income for the community spouse:

• Maximum Allowance: Now $3,948 per month (up from $3,853.50 in 2024).
• Minimum Allowance: Varies by state:some text
  • Lower 48 states: $2,555
  • Alaska: $2,937.50
  • Hawaii: $3,192.50

Note: New minimum MMNA updates will go into effect July 1, 2025.

Income Eligibility Cap

For individuals in states that impose an income cap for Medicaid eligibility, the new monthly income limit is set at $2,901 (an increase from $2,829 in 2024). This cap is particularly significant for individuals applying for Medicaid long-term care coverage.

Home Equity Limits for Medicaid Applicants

Medicaid also enforces limits on the equity a person can hold in their primary residence to qualify for coverage:

• Minimum Home Equity Limit: Increased to $730,000 (up from $713,000).
• Maximum Home Equity Limit: Adjusted to $1,097,000 (from $1,071,000).

These limits ensure that Medicaid resources are focused on those with significant financial need while allowing applicants to retain a modest level of equity in their homes.

For more detailed information refer to CMS’s informational bulletin.

Why These Updates Matter

Understanding these figures is essential for families preparing for long-term care. Whether you're planning for yourself or a loved one, these updates directly impact asset protection strategies, Medicaid eligibility, and the financial wellbeing of spouses who remain in the community.

At Michigan Law Center, we specialize in helping families navigate these complexities. Our team can guide you through planning that protects your loved ones and preserves your assets while ensuring Medicaid compliance.

Need Help Planning for Long-Term Care?

If you’re unsure how these changes affect your Medicaid planning or have questions about protecting your family’s future, contact Michigan Law Center today. Our experienced special needs attorneys are here to help you make informed decisions.