Every year we release the key dollar amounts that are frequently used in elder law, including Medicaid figures, long-term care insurance deductibility limits, Medicare premiums, Social Security Disability, and Supplemental Security Income. Since most of these figures have been released, we are happy to provide details on what has changed for the coming year. Be sure to check back here often, as we will add any information that has not yet been released and update the page should any changes occur (e.g. the Minimum Monthly Income Allowance adjustment is updated annually on July 1).
Medicaid Figures:
Medicaid is the primary funding source for long-term care for millions of disabled and elderly middle class Americans, providing vital long-term care coverage to those who qualify for the benefit.
Although the federal government establishes general guidelines for the program, states design, implement, and administer their own Medicaid programs. The federal government matches state expenditures on medical assistance based on the federal medical assistance percentage, which can be no lower than 50 percent. In fiscal year 2018, the Federal share of Medicaid outlays nationally is expected to be approximately $407.6 billion — all of which is of course funded by your tax dollars. If you are smart enough to do legal planning to get some of these tax dollars back to pay for your long-term care when you need it, it’s ethically no different than income tax planning, when you try to get the biggest income tax refund every year.
When it comes to key dollar amounts, the amounts that have changed are denoted below:
Virginia/Maryland/DC Medicaid Numbers
Every July, states publish the figures to be used when determining Medicaid eligibility for a married couple, and the limits on income that can be kept by an individual or the well spouse remaining in the home. This year’s figures are as follows:
Divestment Penalty Divisors
$9,032.00 – Northern Virginia
(Alexandria, Arlington, Fairfax,
Falls Church, Loudoun,
Manassas, Prince William)
$6,422.00 – All Other
DC: $12,358.83
MD: $9,125
Individual Resource Allowance
VA: $2,000
DC: $4,000
MD: $2,500
Married Couple Resource Allowance
VA: $3,000
DC: $7,000
MD: $3,000.00 each for first 6 months – $2,500.00 each after 6 months, $2,500 each (if separate rooms or facilities)
Monthly Personal Income Allowance for Nursing Home Residents
VA: $40
DC: $70
MD: $77
Shelter Standard
VA: $617.25
DC: $609
MD: $618
Standard Utility Allowance
VA: $311
DC: $305
MD: $420
Medicaid Home Equity Cap
Minimum: $560,000
Maximum: $840,000
Allowance Available for a Community Spouse
Minimum Community Spouse Resource Allowance (except in Alaska and Hawaii): $25,284.00
Maximum Community Spouse Resource Allowance (except in Alaska and Hawaii): $126,420
Minimum Monthly Maintenance Needs Allowance (except in Alaska and Hawaii): $2,057
Maximum Monthly Maintenance Needs Allowance (except in Alaska and Hawaii): $3,160
For CMS’s complete chart of the 2019 SSI and Spousal Impoverishment Standards, click here.
Auxilliary Grant Figures:
2018 Northern Virginia: $1421
2018 Rest of Virginia: $1,230
Veterans Aid and Attendance Figures:
Click here for most current figures
Medicare
Medicare is the federal government program that provides health insurance if you are 65+, under 65 and receiving Social Security Disability Insurance (SSDI) for a certain amount of time, or under 65 and with End-Stage Renal Disease (ESRD). Medicare has been protecting the health and well-being of American families and saving lives for five decades.
In mid-October, the Centers for Medicare and Medicaid Services unveiled the new rates for 2019. The announcement came a day after the Social Security Administration set a 2.8% cost-of-living adjustment to benefits in 2019.
About 2 million Medicare beneficiaries will pay less than the $135.50 premium for next year due to the “hold harmless” provision. That rule protects certain Social Security beneficiaries from paying more for their Part B premiums. The annual deductible for Medicare Part B beneficiaries will be $185 in 2019, up from $183 in 2018.
Medicare Part A covers primarily inpatient hospital care. Most Medicare beneficiaries (99%) do not pay a premium for Medicare Part A, as long as they have at least 40 quarters of qualifying employment.
Below are the numbers that have changed for the coming year:
Medicare Deductibles, Premiums and Co-pays
Medicare Part A Deductible
2019: $1,364 deductible for each benefit period
2018: $1,340 deductible for each benefit period
Medicare Part A Premium
If you are one of the small number of people who don’t qualify for free Part A coverage and decide to purchase it on your own, you’ll pay:
2019: $437 each month
2018: $422 each month
Co-payment for hospital stay, days 61-90
2019: $341 per day
2018: $335 per day
Co-payment for hospital stay, days 91 and up
2019: $682 per day
2018: $670 per day
Co-payment for skilled nursing facility stay, days 21-100
2019: $170.50 per day
2018: $167.50 per day
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Social Security and Supplemental Security Income
Social Security is part of the retirement plan of almost every American worker, and this year, those who collect it will be “getting a raise!”
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2017 through the third quarter of 2018, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.8 percent COLA for 2019.
Retirement Earnings Test Exempt Amounts
Under full retirement age*
2019: $17,640/yr. ($1,470/mo.)
2018: $17,040/yr. ($1,420/mo.)
*One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age**
2019: $46,920/yr. ($3,910/mo.)
2018: $45,360/yr. ($3,780/mo.)
** The 7.65% tax rate is the combined tax rate paid for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
Social Security Disability Thresholds
Non-Blind
2019: $1,220/mo.
2018: $1,180/mo.
Blind
2019: $2,040/mo.
2018: $1,970/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
2019: $2,861/mo.
2018: $2,788/mo.
SSI Federal Payment Standard
Individual
2019: $771/mo.
2018: $750/mo.
Couple
2019: $1,157/mo.
2018: $1,125/mo.
Estimated Average Monthly Social Security Benefits Payable in January 2019
All Retired Workers
2019: $1,461/mo.
2018: $1,422/mo.
Aged Couple, Both Receiving Benefits
2019: $2.448/mo.
2018: $2,381/mo.
Widowed Mother and Two Children
2019: $2,876/mo.
2018: $2,797/mo.
Aged Widow(er) Alone
2019: $1,386/mo.
2018: $1,348/mo.
Disabled Worker, Spouse and One or More Children
2019: $2,130/mo.
2018: $2,072/mo.
All Disabled Workers
2019: $1,234/mo.
2018: $1,200/mo.
Thank you for your interest in these key dollar amounts for 2019. We hope this was helpful! As always, if you or a loved one is nearing the need for long-term care or already receiving long-term care, or if you have not done Long-Term Care Planning, Estate Planning or Incapacity Planning (or had your Planning documents reviewed in the past several years), please call us to make an appointment for an initial consultation:
Fairfax Elder Law Attorney: 703-691-1888
Fredericksburg Elder Law Attorney: 540-479-1435
Rockville Elder Law Attorney: 301- 519-8041
DC Elder Law Attorney: 202-587-2797
About Evan H Farr, CELA, CAP
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