Special Rules for Married Persons

The Spousal Case & Spousal Impoverishment

Spousal impoverishment rules are concerned with two areas, assets and income, and were introduced as part of the Medicare Catastrophic Coverage Act (MCCA), enacted in July, 1988.

Prior to the enactment of the spousal impoverishment rules, each spouse was considered to be a separate economic unit and the assets and income of one spouse were not considered to be available to the other.

As a result, after the community spouse (usually the wife) had spent all of the available assets for the nursing home expenses of the institutionalized spouse (usually the husband), the community spouse had no assets and little income, and the income of the institutionalized spouse was required to be used as the patient pay amount to the nursing home.

The end result was the community spouse had no assets, insufficient income, was improvised, and also became dependant on the social service system for support. Accordingly, the spousal impoverishment rules treat the assets and income of husband and wife as being part of a common pot, with the community spouse entitled to a guaranteed share of the common pot of assets (community spouse resource allowance) and a guaranteed share of the common pot of income (maintenance needs allowance).

• The Asset Snapshot Date
• The Asset Declaration
• Spousal Asset Allowance
• Spousal Income Allowance
• Monthly Co-pay to the Nursing Home