©2010 Raymon B. Harvey, P. A.    Arkansas Elder Law™  Arkansas Elder Law & Special Needs Trusts™ Medicaid Planning Page 2 501-221-3416 650 S. Shackleford Rd. Suite 400 Little Rock, Arkansas 72211 Tel:   501-221-3416 Fax:  501-221-2689 info@ArkansasElderLaw.com LEARN MORE INFORMATION YOU CAN USE Medicaid Planning INCOME Arkansas is one of a few states that "cap" the amount of income an individual can make and qualify for Medicaid benefits.  The current cap is $2022.00 in 2010 . IF you income exceeds the "cap" amount, you can still qualify with the use of a "Miller Trust", but ONLY IF YOU ARE IN A NURSING FACILIYTY.  You cannot qualify if you live at home. Miller Trust Article: "Are You Trapped in the Gap? THE ASSET RULES The basic rule of nursing home Medicaid eligibility is that an applicant, whether single or married, may have no more than $2,000 in countable assets in his or her name.  ($3,000 for the Elder Choices program.)  Countable assets generally include all belongings except for personal possessions, one vehicle, the home, and assets that are considered inaccessible. THE TRANSFER PENALTY The other major rule of Medicaid eligibility is the penalty for transferring assets.  If an applicant (or his or her spouse) transfers assets, he or she will be ineligible for Medicaid for a period of time beginning on the date of the application for Medicaid benefits.  The actual number of months of ineligibility is determined by dividing the amount transferred by $4514.00 (2010).