New York Medicaid Income and Asset Limits for 2025
Reviewed by Kent Gross, Esq. — 40+ years handling elder law, estate planning, and guardianship matters in New York.
New York State updates its Medicaid eligibility figures each year. For families navigating long-term care planning or helping an aging parent qualify for Medicaid, the current 2025 figures are essential — and the limits are different depending on which Medicaid program your loved one needs.
This article covers the updated 2025 income and asset limits for both Community Medicaid (for people who want to stay at home) and Chronic Care Medicaid (for people who need nursing home or long-term care facility placement) in New York State.
These figures reflect the most current New York State Medicaid eligibility thresholds as of 2025. Medicaid rules change frequently. Before making any financial or planning decisions based on these numbers, consult with a New York elder law attorney.
The Two Main Medicaid Programs in New York
New York has two primary Medicaid programs that matter most for elder law planning:
Community Medicaid (Home Care Medicaid)
Community Medicaid covers home-based care for individuals who need medical or custodial assistance but want to remain in their home or community setting. This includes home health aides, adult day programs, and other supportive services. Community Medicaid is often the most important program for families trying to help an aging parent stay out of a nursing home.
Chronic Care Medicaid (Nursing Home Medicaid)
Chronic Care Medicaid covers care in a skilled nursing facility. For families whose loved one requires around-the-clock medical care, Chronic Care Medicaid can cover the full cost of a nursing home that accepts Medicaid patients — which can run $14,000 to $18,000 per month in the New York City area.
2025 Medicaid Income Limits in New York
Income limits for Medicaid in New York are based on the Federal Poverty Level (FPL) and are adjusted annually.
Community Medicaid — 2025 Income Limits
For individuals applying for Community Medicaid (home care) in New York in 2025:
• Monthly income limit: approximately $1,732 per month for a single individual
• For a married couple where both spouses are applying: approximately $2,342 per month combined
• If only one spouse is applying, the community spouse (the healthy spouse remaining at home) has a higher protected income allowance
It is important to note that New York eliminated the asset test for Community Medicaid in 2023 — meaning the amount of money a person has saved generally does not affect Community Medicaid eligibility. Income is the relevant threshold for this program.
Chronic Care Medicaid — 2025 Income Limits
For nursing home Medicaid in New York:
• A Medicaid recipient in a nursing home may keep only a small personal needs allowance — typically $50 per month — and must contribute nearly all of their income toward the cost of care
• The community spouse (if the applicant is married) is entitled to keep a Monthly Maintenance Needs Allowance (MMNA) from the institutionalized spouse's income; in 2025, the minimum MMNA is approximately $2,555 per month and the maximum is approximately $3,948 per month
2025 Medicaid Asset Limits in New York
The asset rules are where Medicaid planning becomes most complex — and where working with an elder law attorney can make the most significant difference for a family's financial outcomes.
Community Medicaid — Asset Rules
As noted above, New York eliminated the asset test for Community Medicaid. As of 2023, there is no asset limit for individuals applying for home care Medicaid in New York. This was a significant change and means that a person with substantial savings can still qualify for Community Medicaid based on income alone.
However, families should be aware that Community Medicaid does still have rules around certain asset transfers, and program rules can change. Consulting with a current elder law attorney is essential before assuming your situation fits within the current rules.
Chronic Care Medicaid — Asset Limits (Nursing Home)
For nursing home Medicaid, asset limits remain strict:
• Individual applicant: The applicant may retain $31,175 in non-exempt assets (2025 figure)
• Married couple (one spouse applying): The community spouse can retain a Community Spouse Resource Allowance (CSRA) of up to approximately $154,140 in countable assets (2025 figure); the minimum protected amount is approximately $30,182
Assets that are exempt from the Medicaid asset count include:
• The primary residence (up to a certain equity value), if the community spouse lives there or the applicant intends to return
• One vehicle
• Household goods and personal effects
• Pre-paid burial arrangements
Medicaid Planning Questions?
Talk to LGK Lawyers — Free Initial Consultation
The Medicaid Look-Back Period in New York
For nursing home Medicaid, New York applies a five-year look-back period. This means that when a person applies for Chronic Care Medicaid, the state reviews all financial transactions going back five years. Gifts or transfers of assets made during that period may result in a penalty period during which Medicaid will not cover nursing home costs.
This is why Medicaid planning done well in advance — ideally at least five years before nursing home placement is anticipated — is so valuable. An irrevocable Medicaid Asset Protection Trust (MAPT), funded more than five years before the Medicaid application is filed, can shelter significant assets from the Medicaid spend-down.
Example: A family places $400,000 into a Medicaid Asset Protection Trust in 2025. If the trust is properly structured and the grantor applies for Medicaid no earlier than 2030, those assets may be protected and passed to the family rather than spent on nursing home care.
Note: Community Medicaid in New York does not currently apply the five-year look-back period, though this is subject to change and pending regulatory developments should be monitored carefully.
What Counts as Income for Medicaid in New York?
Income for Medicaid purposes includes:
• Social Security benefits (including SSI)
• Pension and retirement income
• Required Minimum Distributions (RMDs) from IRAs and 401(k)s
• Wages or self-employment income
• Rental income
• Interest and dividend income (in some programs)
Not all income is counted the same way across different Medicaid programs. An elder law attorney can help identify deductions and strategies that may reduce countable income for Medicaid eligibility purposes.
Why Families Should Plan Early
Medicaid planning is not something to address after a nursing home placement has already begun. At that point, options are limited. The most effective strategies — irrevocable trusts, strategic gifting with the look-back in mind, annuity planning for married couples — require time to work.
The best time to meet with a New York elder law attorney about Medicaid planning is five or more years before long-term care is anticipated. The second best time is now.
LGK Lawyers works with families across New York City and the Capital Region on comprehensive Medicaid planning, including trust drafting, spend-down strategies, and Medicaid application support. Our attorneys are experienced in navigating New York's complex Medicaid rules and helping families protect what they've worked for.
