A nursing home Medicaid applicant in 2028 can keep up to $1,000,000 in home equity. Starting January 1, 2028, federal law blocks Medicaid long-term-care payment above that ceiling, reports Justice in Aging in its summary of the change.
Home equity interest means the applicant's ownership value in the home. It equals current fair-market value minus mortgages and other debts. Only the applicant's ownership share counts.
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Official resource:
- Check eligibility on Jbiznews’s official study page — Use this page to check the study’s participation requirements.
Table of Contents
- What counts toward the $1 million?
- Who stays exempt at any equity level?
- Why is 2028 tighter in some states?
- What should families in high-cost areas check?
What counts toward the $1 million?
Use current market value, not purchase price. Subtract every secured debt on your share, including mortgages. The state checks that figure at application and again at Medicaid redetermination.
Shared ownership does not double-count the house. If two siblings each own half, only the applicant's half matters, as described by Medicaid Planning Assistance in its guide to the home exemption. Keep deeds, loan statements, and a current valuation together.
Who stays exempt at any equity level?
The cap does not apply when a spouse lives in the home. It also does not apply when a child under 21 lives there. A blind or permanently disabled child of any age living there also preserves the exemption.
Then the home stays exempt regardless of equity or where the applicant lives. Other residents can state an intent to return home. That statement can keep the home exempt during a nursing-home stay. It does not raise the ceiling; the home must still sit at or below the equity limit.
Why is 2028 tighter in some states?
For comparison, the 2026 federal standard starts at $752,000. States may raise it up to $1,130,000. States now at the maximum must come down to $1 million in 2028.
Congress set the $1 million ceiling in Section 71108 of the 2025 Budget Reconciliation Act. The law was the One Big Beautiful Bill Act signed July 4, 2025. It freezes covered homes with no annual inflation increase, according to Applied Policy and its review of the signed law.
What should families in high-cost areas check?
The freeze matters because home prices keep rising. Middle-class owners in high-cost markets face the most risk. A modest two-bedroom in New York City or San Francisco can already top $1 million, reports JBizNews in its report on high-cost markets.
Check equity early, before a crisis forces quick choices. Ask these three questions: Homes on lots zoned for agricultural use follow different rules. They stay under the older inflation-adjusted $500,000/$750,000-base rules in federal law.
- What is our current market value minus debts?
- Who lives in the home now?
- Is the lot zoned agricultural?
