Arkansas Medicaid Long Term Care Eligibility in 2025

Arkansas Medicaid Long Term Care Programs

In Arkansas in 2025, even if you are receiving Medicaid benefits, you will need to reapply for long-term care Medicaid. Below are the four main types of long-term care available in Arkansas, each with different requirements and services.

Arkansas is an income cap state, meaning there is a hard income limit for Medicaid long-term care benefits. Unlike non-income cap states, Arkansas does not allow applicants to spend down their income to qualify; instead, income must fall below the limit at the time of application.

Types of Care:

Program of All-Inclusive Care for the Elderly (PACE):

PACE is a program for people aged 55 and older who have been certified by the state for nursing home care in 2025. PACE enables participants to live as independently as possible by providing comprehensive health care services across all settings, 24/7, every day of the year.

Nursing Home Care

Medicaid-certified nursing homes are covered by Medicaid. A doctor must prescribe nursing home care for Medicaid to pay. Applicants or representatives must apply at the Department of Human Services (DHS) office in the county where the nursing home is located. Co-payments for medical care and prescription drugs are covered for residents.

LivingChoices Assisted Living in 2025

LivingChoices Assisted Living provides housing and care for those needing supervision and extra care. Designed for individuals healthy enough to remain semi-independent, it is available at licensed assisted living facilities with on-site staff offering as-needed support. To qualify, an applicant must:

Be aged 65 or older OR
Be aged 21 or older and declared disabled by Social Security/SSI or the DHS Medical Review Team
Meet income and asset limits (see below)
Meet requirements for nursing home admission at the “intermediate” level of care
Have a medical need and receive one or more of the provided services

ElderChoices in 2025

ElderChoices provides home health services to people aged 65 and older who need special care but wish to remain at home. It does not cover more skilled levels of care. A nurse or counselor prepares a personalized care plan, which must be approved by the recipient’s personal doctor.

Other Qualifications:

INCOME for 2025: Includes Social Security, Veteran’s benefits, railroad retirement, pensions, annuities, dividends, rental income, withdrawals from IRAs, etc. The monthly income cap is $3,021. Income of the spouse and children is not counted. Applicants for the Assisted Living waiver may establish eligibility through an income trust. A personal needs allowance of $40/month is excluded from the income calculation.

If the community spouse’s income falls below $2,555/month, the institutionalized spouse’s income may be added to raise it. In certain cases, this amount can be increased to a maximum of $3,948/month.

RESOURCES for 2025: Includes real property, cash, checking and/or savings accounts, certificates of deposit, promissory notes, mortgages, stocks, mutual funds, trusts, automobiles, life insurance policies with a cash value, IRAs, and revocable burial funds. A 60-month look-back period applies, and improper asset transfers (e.g., selling below fair market value) result in periods of ineligibility.

Exempt Resources: Includes the applicant’s home (if equity interest is ≤ $730,000 or if a spouse, minor, or disabled child resides there), one vehicle, burial spaces, and prepaid burial plans.

The resource limit for an individual is $2,000. For a community spouse, special protection allows retention of resources up to $157,920, with a minimum of $31,584.

NOTE: Applicants exceeding resource or income limits may still qualify by setting up a qualified income trust. Contact the DHS office for details.

Arkansas Long Term Care Insurance Partnership in 2025:

This partnership between Arkansas and private insurance companies protects assets on a dollar-for-dollar basis, allowing applicants to qualify for Medicaid with protected resources. For example, a policy with $165,000 in benefits allows for $165,000 in asset exemptions during Medicaid eligibility determinations.