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The money is running out

Spend-down, Medicaid timing, and why waiting makes this harder.

Quick answer

Spend-down, Medicaid timing, and why waiting makes this harder.

Home›By Situation›The money is running out

This is the situation families delay talking about longest, and delay is the one thing that reliably makes it worse.

Short answer

Spend-down, Medicaid timing, and why waiting makes this harder.

What to do, in order

  1. Work out the actual runway. Current balance, monthly burn including care-level charges, and expected increases. Most families are working from a number that is six months stale.
  2. Join the Medicaid interest list now. Call 2-1-1 or use YourTexasBenefits.com. The list does not move faster because your situation became urgent, and nothing is lost by joining while still paying privately.
  3. Find out whether the current community takes STAR+PLUS. Ask whether they contract with Medicaid managed care and how many current residents are on it. A meaningful share of Austin communities do not, which means a forced move later.
  4. Check for benefits already on the table. VA Aid and Attendance is heavily under-claimed in this metro, and care costs reduce countable income, so income alone does not disqualify.
  5. Talk to an elder law attorney before moving money. Transfers carry look-back consequences, and well-intentioned gifting is one of the most common ways families make eligibility worse.

Questions Austin families ask

How much money can my spouse keep if I go into a nursing home in Texas?

Texas allows a Community Spouse Resource Allowance so the at-home spouse isn't impoverished, reported at $162,660 for 2026. The applicant spouse is limited to $2,000. Because these figures change annually and the calculation is complex, confirm current amounts with HHSC or a Texas elder law attorney.

How much spending money does a Texas nursing home resident keep?

Texas sets the Personal Needs Allowance at $75 per month, raised from $60 effective January 1, 2024. That's well above the $30 federal minimum. Nearly all remaining income, after Medicare premiums, any spousal allowance, and allowable medical expenses, goes to the facility as applied income.

Will Texas take my mother's house after she goes on Medicaid?

Texas may file an estate recovery claim after death if she was 55 or older when receiving services and first applied for long-term services on or after March 1, 2005. This covers nursing home care and STAR+PLUS. Texas never recovers more than it paid, and exemptions and hardship waivers exist.

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