Medicaid Spend-Down in Michigan

Michigan combines features of both state types: it uses the standard $2,982/month income figure as a starting point, but also runs its own Spend-down program that lets applicants over that amount qualify by spending their "excess" income on nursing home costs each month — something pure income-cap states don't offer.

Income limit

The 2026 income limit for a single Nursing Home Medicaid applicant in Michigan is $2,982/month. Unlike a strict income-cap state, Michigan's Spend-down program allows someone over this limit to still qualify for Medicaid-funded nursing home care by spending down their excess income against their care costs each month, rather than requiring a Qualified Income Trust in every case. Residents keep a $60/month personal needs allowance.

Asset limit

The asset limit for a single applicant is $9,950 — notably higher than the $2,000 federal baseline used in many states.

Community Spouse Resource Allowance

When only one spouse applies, the applicant spouse's asset limit is $9,950, and the non-applicant community spouse can typically retain up to $162,660 (2026).

What to do if your parent is over the limit

If assets are over $9,950, asset spend-down applies the same way it does elsewhere — see countable vs. exempt assets for what counts. Michigan has a 5-year look-back period on asset transfers; review spend-down vs. the look-back period before making any. Our spend-down calculator can give a rough starting estimate using Michigan's current asset limit, and a Michigan elder law attorney can walk through how the state's income Spend-down program specifically applies to your parent's situation.