Medicaid FAQs

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Because New York Medicaid rules are very technical, families should speak with an elder law attorney before transferring property or applying for Medicaid.

 In New York, Medicaid generally cannot take your house while you are alive, but there are situations where Medicaid may seek repayment after death through a process called estate recovery.

Here’s how it works:

Your primary residence is often considered an exempt asset for Medicaid eligibility purposes if:

• You live in the home, or
• Your spouse lives there, or
• Certain other qualifying family members live there.

For Nursing Home Medicaid, New York also allows an applicant to keep a home up to a certain equity value limit if they express an “intent to return home.”

After a Medicaid recipient dies, New York may attempt to recover Medicaid expenses from the person’s estate.

However:

• Medicaid cannot force the sale of the home while a surviving spouse is alive.
• Recovery is delayed if there is:
  • A surviving spouse
  • A child under 21
  • A blind or disabled child

Many families use planning strategies to help protect the home, including:

• Medicaid Asset Protection Trusts
• Life estate deeds
• Exempt transfers to certain family members
• Advance planning before the 5-year lookback period

Transferring a house without proper legal advice can create:

• Medicaid penalties
• Tax consequences
• Capital gains issues
• Loss of creditor protection

 Applying for Medicaid in New York can be one of the most important financial decisions a family makes. Whether you are seeking nursing home Medicaid for a loved one or Community Medicaid services to help remain at home, the application process is often far more complex than people expect.

Many families assume they can simply fill out forms and submit documents. Unfortunately, mistakes can result in lengthy delays, denials, loss of benefits, or even unnecessary spending of assets that could have been protected. Working with an experienced Medicaid attorney can help ensure that your application is prepared correctly and that your rights and assets are protected throughout the process.

Applying for Medicaid in New York is not simply a paperwork exercise. It requires a thorough understanding of eligibility rules, asset protection strategies, documentation requirements, and agency procedures.

An experienced Medicaid attorney can help protect your assets, avoid unnecessary delays, and increase the likelihood of a successful application. If you or a loved one are considering applying for Medicaid, seeking legal guidance before submitting an application may save time, money, and stress.

At The Law Office of Melissa L. Carvajal, PC, we help individuals and families throughout Suffolk County and Long Island navigate the Medicaid application process and plan for long-term care with confidence. Contact our office at (631) 371-381 to discuss your options and determine the best strategy for your family’s needs. 

In New York, the amount of money you can have and still qualify for Medicaid depends on:

• which Medicaid program you are applying for, and
• whether you are single or married.

For 2026, a single person applying for Nursing Home Medicaid or Community Medicaid generally may keep about $33,038 in countable assets. A married couple with both spouses applying may keep about $44,796 combined.  

Examples of countable assets include:

• cash
• bank accounts
• investments
• some retirement accounts
• extra real estate

Some assets are typically exempt, including:

• a primary residence in many situations
• one vehicle
• personal belongings
• certain prepaid burial arrangements

For income limits, a single applicant generally may have about $1,836 per month in income in 2026 before spend-down or planning strategies may be needed.  

If only one spouse is applying for Nursing Home Medicaid, the healthy spouse may usually keep substantially more assets under the Community Spouse Resource Allowance rules — currently up to approximately $162,660.  

Importantly, many people who are over the limits can still qualify through:

• spend-down planning
• pooled income trusts
• Medicaid Asset Protection Trusts
• exempt transfers
• spousal refusal strategies

In Suffolk County, a Medicaid application typically takes about 45 days to process, but Nursing Home Medicaid and Community Medicaid cases often take longer in practice — especially if additional documentation is requested.  

Here’s what families commonly experience:

• Standard Medicaid applications: approximately 45 days
• Disability-based applications: up to 90 days
• Nursing Home Medicaid applications: often several months due to financial review and document requests
• Community Medicaid with home care services: timing can vary depending on assessments and managed care enrollment  

Delays frequently happen because Suffolk County DSS may request:

• 5 years of bank statements
• proof of income
• retirement account statements
• life insurance information
• documentation regarding asset transfers or gifts

If documents are missing or transfers need explanation, the case can take substantially longer.

In many Nursing Home Medicaid cases, families should realistically expect:

• 2–6 months from application to approval, depending on complexity and county backlog.

Applications involving:

• Medicaid Asset Protection Trusts
• gifted assets
• annuities
• pooled income trusts
• spousal refusal
• missing records

usually take longer because Suffolk County will scrutinize the financial history carefully.

While anyone can apply for Medicaid, the process is often complicated and mistakes can lead to delays, denials, or the unnecessary loss of assets. A Medicaid attorney can help determine eligibility, identify asset protection opportunities, gather required documentation, and respond to requests from the Medicaid agency.

For many families, professional guidance helps avoid costly errors and provides peace of mind during what is often a stressful time. An experienced Medicaid attorney can help ensure the application is completed correctly and that all available planning options are considered before benefits are requested.