The Community Spouse Resource Allowance (CSRA) is a financial safeguard for married couples when one spouse requires Medicaid-funded long-term care. It determines the amount of assets the non-institutionalized spouse, known as the “community spouse,” can retain while the other qualifies for Medicaid. The CSRA aims to prevent the community spouse from experiencing financial hardship by protecting a portion of the couple’s joint assets. The allowable amount varies by state and is adjusted annually, making it an essential component of Medicaid planning for couples facing long-term care needs.
Consider working with a financial advisor as you assess your long-term care needs and resources.
About the Community Spouse Resource Allowance
The Community Spouse Resource Allowance (CSRA) is used when someone is applying for long-term care through Medicaid. While Medicaid does require that an applicant use his or her assets and income before receiving aid, the federal government wants to ensure that the spouse has enough assets and income to live on. This calculation determines what amount of assets are excluded from being spent down before Medicaid covers long-term care assistance.
In a CSRA framework, a spouse who is applying for long-term care through Medicaid is known as the “institutional spouse.” This spouse may also be known as the “nursing home spouse.” These terms also are used if they are applying for a long-term care Medicaid waiver to have services in their home or local community. The “community spouse” is the one who is not applying for long-term care Medicaid. This person is also commonly referred to as the non-applicant, healthy or well spouse.
CSRA Limits for 2025
Each state sets its own CSRA limits within federally defined minimum and maximum amounts. For 2025, the federal minimum is $31,584, while the maximum is $157,920. States have the discretion to set limits within this range, which means the exact amount the community spouse may retain depends on their state of residence.
Some states use the federal maximum limit, allowing community spouses to retain the highest possible amount. Others may apply a more modest limit closer to the federal minimum. Checking state-specific Medicaid guidelines is necessary for the most accurate figure.
Which Assets Count Toward CSRA?
When calculating your community spouse resource allocation, it helps to know how assets are treated by Medicaid. Not all assets are counted in CSRA and those that are not are considered exempt.
What Assets Are Protected?
All liquid assets are expected to be used to cover your long-term care needs. Liquid assets include cash, certificates of deposit, stocks, bonds and vacation properties. Liquid assets under the CSRA that are owned by the community spouse are protected. They do not have to be spent before the institutionalized spouse receives Medicaid benefits.
By contrast, some assets are protected from liquidation. These protected assets include a couples’ primary home, household furniture and appliances, clothing and an automobile.
Certain financial assets are also protected. These include irrevocable funeral and burial trusts and term life insurance policies. However, cash value life insurance policies are not protected unless the face value is less than $1,500. With cash value life insurance policies with face values above $1,500, only the cash value is included in the CSRA calculation. The death benefit is not.
How Is a Couple’s Home Treated?
A primary residence is considered a non-countable asset for the CSRA if the community spouse lives in the home, regardless of their equity stake in the property. As a result, the value of the home won’t impact a spouse’s eligibility for the CSRA if they continue to live there.
Medicaid generally excludes a primary residence as a countable asset for the Medicaid applicant if they continue to live in the home, but the equity value of the home must fall below a federally set limit to qualify.
For 2025, the federal home equity limit is $730,000, though some states set higher limits, up to $1,097,000. If the applicant’s equity exceeds the allowable amount, they may need to take steps to reduce it – such as through a reverse mortgage or selling the home – to meet Medicaid eligibility requirements. Importantly, if the community spouse continues to live in the home, it is fully exempt from Medicaid’s asset calculations, regardless of equity value.
Are You Required to Spend Down Your Resources?
Before the CSRA, couples were expected to spend down their resources to a maximum value of $2,000. This left many community spouses without adequate resources to continue living in their homes without relying on federal, state and local aid.
The CSRA was designed to reduce community spouse reliance on government aid by allowing them to keep assets intended to pay their living expenses. The current limit is 50% of a couple’s assets up to a maximum $157,920 in most states.
Another consider is a Medicaid asset protection trust. Transferring assets to this type of trust can allow you to qualify for Medicaid to pay for long-term care while preserving your savings.
How to Calculate the CSRA
To calculate your CSRA number, you’ll take a “snapshot” of your eligible assets. This happens on the applicant spouse’s first day of institutionalization or when they qualify for a Medicaid waiver. Remember, that some assets are excluded, such as the couple’s primary home, a car, household furniture and appliances and clothing.
All of the couple’s assets are tallied. Each asset is considered jointly owned, even if only one spouse’s name is on it.
The total of the assets is divided by two, with half considered to be owned by each spouse. In some states, community spouses are entitled to up to 100% of the couple’s assets up to the maximum resource allowance for that state. States with a 100% CSRA include Alaska, California, Florida, Maine and Mississippi.
The applicant spouse is required to spend down their share until their assets reach the $2,000 Medicaid exemption amount before Medicaid will pay for their long-term care needs.
Bottom Line
The CSRA rules allow spouses to retain income and assets to continue living within the community without impoverishing themselves. The community spouse can live in their home and keep liquid assets up to the federal maximum CSRA without affecting the nursing home spouse’s benefits. Any assets above these protected amounts are expected to be liquidated to cover nursing home costs.
Retirement Planning Tips
- Making sure that your spouse has enough money to live on is a concern for most couples. Working with a financial advisor can help you create a plan to address those concerns. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- SmartAsset’s retirement calculator can help you calculate how much money that you’ll have in retirement to pay bills, have fun and cover medical expenses. This free tool takes your age, income, projected Social Security benefit and monthly savings into account.
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