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2025 Florida Medicaid Income & Asset Limits Update: What Changed and How to Still Qualify (Even Last-Minute)

Elder Law Book for Medicaid Eligibility

As of January 2025, the Medicaid gross monthly income limit increased from $2,829 (2024) to $2,991. Yes – it went from $2,829 to $2,991. It’s a small increase (typical every year to account for inflation), but it’s an increase, and that extra $162 per month now lets some people qualify automatically who were previously $50–$100 over the old limit.


The 2025 Medicaid Numbers You Need to Know

  • Gross Monthly Income Limit: $2,991

  • Asset Limit: $2,000 (unchanged) – you must be able to show on bank/financial statements that on at least one day of the month your countable assets are ≤ $2,000.


Income vs. Assets – The Difference That Most People Get Wrong

Income = recurring monthly checks you receive that show up on your taxes Examples that count:

  • Social Security

  • Pensions

  • Required Minimum Distributions (RMDs) from 401(k)s, IRAs, etc.

  • Any other monthly retirement distributions

Assets = stuff you own (cash, investments, property, etc.) Examples that count:

  • Cash in checking/savings

  • Stocks, bonds, CDs, investment accounts

  • Second properties (second home, rental property, land)

  • Extra vehicles (one vehicle is completely exempt)

  • Whole life/universal life insurance cash surrender value

  • Retirement accounts IF you are NOT taking monthly distributions


The no.1 Trick We Use Every Week: Turn Retirement Accounts from Asset → Income

If you’re under RMD age and your IRA or 401(k) is just sitting there, Medicaid counts the entire balance as an asset → you’re over $2,000 → denied.

Start taking monthly distributions (even if you don’t have to yet) → the principal suddenly disappears as an asset, and only the monthly distribution counts as income.

We then fix the income side so you still qualify. Result: $200k, $400k, even $600k+ retirement accounts become completely exempt overnight. 100% legal, zero look-back issues.

Whole Life Insurance Fix

Term life → ignored (only pays on death). Whole life → cash surrender value is a countable asset.

Simple solution: Take a policy loan against the cash value → cash value drops to $0 → you keep the policy in force → asset problem solved. We do this all the time, often in the same week we meet the client.

Other Exempt Assets

  • Your homestead (up to a pretty high amount in the 700,000s – equity does NOT count)

  • One vehicle (any value)

  • Term life insurance

  • Personal belongings, furniture, etc.

Yes – You Can Still Qualify Even If You’re Over Income, Assets, or Both (Even in Crisis)

There are multiple tools available in Florida – many of which are not subject to the normal 5-year look-back period – that let us fix excess income, excess assets, or both, often in days or weeks.

I see families every week who were told “you make too much” or “you have too many assets” and we get them qualified anyway without spending everything down on care.

Bottom Line

First step: Know exactly what counts as income vs. what counts as an asset. Second step: Talk to someone who actually does Medicaid planning every single day (not just a general estate planning).

If you or your parents are facing nursing home bills, want the in-home care waiver, or need Medicaid to pay for assisted living in Florida, call an elder law attorney who knows the current tools inside and out.

We’re atCause Law – the non-stuffy attorneys – and we help families all over Florida qualify while protecting as much as possible.

You do NOT have to go broke to get care in Florida. There are still very good options in 2025 – but only if you talk to someone who knows them.

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