Understanding the Community Spouse Resource Allowance (CSRA)

Safeguarding Your Family’s Future While Navigating Medicaid for Long-Term Care

When one spouse requires long-term care in a nursing home, many families worry that their life savings will be depleted to pay for it. Fortunately, there’s good news: Medicaid includes essential protections to assist families.

One of the most significant and frequently misunderstood resources is the Community Spouse Resource Allowance, or CSRA. If this is your first time hearing about it, you’re not alone. At Rutkowski Law Firm, we often encounter families who believe they must spend down all their assets to qualify for Medicaid. This is simply not the case.

Let’s break it down.

What Is the CSRA?

The Community Spouse Resource Allowance is a Medicaid regulation that permits the spouse who remains at home (the “community spouse”) to retain a portion of the couple’s assets. In contrast, the other spouse receives long-term care in a nursing facility.

This rule is in place for one crucial purpose: To protect the healthy spouse from becoming financially disadvantaged while the other spouse is receiving Medicaid benefits.

In other words, you don’t have to sacrifice everything to ensure your loved one receives the care they need.

How Much Can the Community Spouse Keep?

The specific dollar amount for the Community Spouse Resource Allowance (CSRA) can change annually and may be influenced by state regulations. For 2024, the maximum CSRA in Michigan is set at $154,140.

This figure is determined based on the couple’s combined countable assets at the time one spouse enters a long-term care facility. Depending on your individual circumstances, your allowable amount may be lower; however, with the right strategy, you can maximize the amount you retain.

Commonly considered “countable” assets include:

• Bank accounts
• Investments
• Retirement accounts
• Non-exempt real estate

Understanding these assets is crucial for effective planning and ensuring you keep as much of your resources as possible.

What the CSRA Means for Your Estate and Long-Term Planning

Too frequently, families hastily deplete their assets under the misconception that “that’s what you have to do for Medicaid.” However, spending without a strategic plan can lead to setbacks, particularly if it doesn’t align with Medicaid’s intricate regulations.

The Community Spouse Resource Allowance (CSRA) plays a vital role in ensuring that the community spouse maintains financial stability without having to sell the family home, liquidate retirement accounts, or disrupt their quality of life.

Additionally, it empowers couples to:

• Avoid unnecessary financial strain
• Preserve assets for future needs or legacy aspirations
• Initiate Medicaid planning earlier and more effectively

Why You Need an Elder Law Attorney on Your Side

Medicaid regulations, particularly those concerning the Community Spouse Resource Allowance (CSRA), can be intricate and highly personalized. What is effective for one family may not be suitable for another.

By collaborating with an experienced elder law attorney, you can:

• Accurately assess your asset division
• Steer clear of costly errors that could delay or jeopardize your Medicaid eligibility
• Employ legal strategies such as Medicaid Asset Protection Trusts or spousal annuities
• Gain peace of mind knowing that your family’s financial future is secure

You Don’t Have to Spend Everything to Get the Help You Need

The Community Spouse Resource Allowance (CSRA) is intended to assist, not hinder, families navigating one of life’s most challenging transitions—placing a spouse in long-term care. If you find yourself in this situation (or anticipate it), the sooner you grasp your options, the better equipped you will be to make informed decisions.

At Rutkowski Law Firm, we guide Michigan families through the Medicaid planning process with clarity, compassion, and decades of experience.