Washington Medicaid Long-Term Care Eligibility in 2025

Washington State Long-Term Care

Eligibility for 2025:

1. Residency and Citizenship – The applicant must be a Washington resident and a U.S. citizen, or have proper immigration status.

2. Age/Disability – The applicant must be 65 years or older, blind, or disabled. The applicant must meet medical requirements consistent with the level of care requested. They must also require care for 30 consecutive days.

3. Income Limitations – For single applicants, monthly income (from wages, Social Security benefits, pensions, veteran’s benefits, annuities, SSI payments, IRAs, etc.) must not exceed $3,021 (300% of the Federal SSI Benefit Level).

There is a personal needs allowance of $62/month that is excluded from the total countable income.

4. Asset Limitations (Exempt vs. Available) – Medicaid divides assets into two categories: Exempt and Available. Exempt assets are protected under the rules, while available assets must be liquidated and applied toward care costs before eligibility is granted. Washington enforces a 5-year look-back period to penalize transfers of assets below fair market value or gifts.

Exempt Assets in 2025 for an applicant in Washington include:

i. $2,000 or less in cash or non-exempt assets if single.

ii. One home is exempt (equity limit $788,000) if the applicant intends to return, or if a spouse, child under 21, or disabled dependent resides there. Proceeds from the sale of a previously exempted home become a countable asset until spent down below the limit.

iii. One automobile, no equity limit specified.

iv. Irrevocable burial trust, no amount specified.

v. Non-saleable property, household furnishings, furniture, clothing, jewelry, and personal effects are exempt.

Spousal Rules for 2025:

Community Spouse Asset Allowance: The community spouse may retain up to $152,020 in non-exempt resources. If the community spouse’s assets are below the minimum of $30,027, additional resources can be transferred from the institutionalized spouse.

Community Spouse Income Protection: If the community spouse’s income is below $2,389/month, they may retain part of the institutionalized spouse’s income to meet this threshold. Depending on living expenses, the maximum income the community spouse may retain is $3,898.50/month. Washington is an “income-first” state, requiring combined income to be considered before petitioning for an increased Community Spouse Resource Allowance (CSRA).

Washington Long-Term Care Insurance Partnership in 2025:

Washington offers a program that protects assets dollar-for-dollar based on the maximum benefit payout of a private insurance policy. For instance, a policy with a maximum benefit payout of $165,000 allows the policyholder to exempt $165,000 in assets when applying for Medicaid. Married couples must purchase individual policies to qualify. Once the policy’s benefits are exhausted, the protected assets remain exempt during Medicaid eligibility calculations.