Q: How do I qualify for Medicaid home health care in New York in 2026?
A: A New Yorker interested in applying for Community Medicaid – that is, long-term care provided by home healthcare aides – must meet certain income and asset limits to qualify. These limits are adjusted each calendar year and vary based on the applicant’s marital status.
By law, the allowable income and asset limits are set at 138% of the Federal Poverty Level (FPL). In 2026, a single applicant must have less than $33,038 in countable assets, an increase from $32,396 in 2025. For married couples, the resource limit is $44,796. Furthermore, the monthly income limit is $1,836 per month for single applicants and $2,489 per month for married couples.
The countable assets consist of cash, bank accounts, stocks, bonds, non-qualified annuities, and cryptocurrency. The primary home is automatically exempt if the applicant’s spouse, child under 21 years old, or disabled child (of any age) resides there. If a single applicant is the only resident, the home is considered if the equity value is greater than $1,130,000 (in 2026). Homes with equity valued below this threshold are excluded.
Tax-deferred assets (“qualified accounts”), such as retirement accounts and IRAs, are exempt, so long as the applicant is taking minimum distributions – that is, they must be in “payout status.” However, the value of these minimum distributions is counted toward the applicant’s monthly income limit.
New York does not have a “lookback” period for Community Medicaid programs, though the state plans to implement one in the future. Institutional Medicaid (i.e., nursing home care) applications have a 60-month lookback period, during which the state closely scrutinizes all asset transfers to ensure that none were gifted or sold for less than fair market value. Community Medicaid applications do not require such scrutiny. While the New York State budget in 2020 included a provision for a 30-month lookback period for Community Medicaid, it is unclear when the state intends to impose this requirement.
Prospective Community Medicaid applicants with assets over the threshold can transfer their excess to an Asset Protection Trust, with the help of an estate planning attorney, and are eligible to apply in the following month. If their income is over the limit, these applicants can take advantage of a pooled income trust (“PIT”), which can shelter the excess. The PIT is a type of supplemental needs trust administered by an organization with an underlying charitable cause. With a PIT, the Medicaid recipient can keep their income level below the required threshold and keep the excess in trust. Once there, the income can be made available to the recipient to pay expenses for their own benefit, such as rent, utilities, food, and clothing.
Though the state has not yet imposed a lookback period for Community Medicaid applicants, New Yorkers interested in the program should take precautions to protect their assets ahead of time. Consulting with an experienced attorney, especially while you are healthy, can minimize exposure of your assets and help ensure that your enrollment in the program is seamless.
By Frank Oswald, Esq.
Frank Oswald, Esq. is an associate attorney at Burner Prudenti Law, P.C., focusing his practice on Trusts and Estates. Burner Prudenti Law, P.C. serves clients from New York City to the East End of Long Island, with offices located in East Setauket, Westhampton Beach, Manhattan, and East Hampton.