In general, a MassHealth applicant can keep ownership of the person’s home (although it will be subject to a lifetime lien, allowing MassHealth to get reimbursed on a sale during lifetime, and the person’s probate estate will be subject to an estate recovery claim, making MassHealth reimbursement very close to first in line after the probate estate’s sale of the home). Under 2006 changes in federal Medicaid law, some applicants can keep a home of any value, including the MassHealth applicant’s spouse. There is, however, a limit on how much home equity a MassHealth applicant can retain. When this law took effect, the limit in Massachusetts was $750,000.00, but due to being indexed for inflation, the 2015 limit is now $828,000.00.
If the MassHealth applicant’s home equity exceeds the annual limitation, the equity limit can be dealt with through bank mortgages and personal loans, which must meet stringent MassHealth requirements.