Health Insurance

HUSKY C Asset Rules and Spend-Down in Connecticut: LTSS, 60-Month Look-Back, and Spousal Impoverishment (2026)

· · 28 min read
⚡ Key Takeaways
  • HUSKY C basic asset limit is $1,600 individual / $2,400 couple in 2026; LTSS retains the $1,600 individual limit with separate spousal protections.
  • Community spouse retains CSRA of $30,828–$154,140 and MMMNA of $2,555–$3,948 under spousal impoverishment protections.
  • Exempt assets include primary home (up to $730,000 equity), one vehicle, prepaid burial, term life, and Partnership-protected assets.
  • 60-month look-back applies to LTSS applications only; transfer penalty is uncompensated transfer amount divided by $15,200 (CT 2026 average nursing home cost).
  • Comprehensive Medicaid planning ideally begins 5 years before anticipated long-term care need; crisis planning can still protect significant spousal assets.
Key Takeaways

HUSKY C and the LTSS Pathway in 2026

Sources: CT DSS Long-Term Care, Medicaid LTSS

Sources: CT Home Care Program for Elders

2026 Asset Limits: Individual, Spouse, and LTSS

Sources: CMS Spousal Impoverishment

Exempt vs Countable Assets

Exempt Assets Under HUSKY C in 2026

  • Primary residence (home equity up to $730,000 in 2026, unlimited if spouse or qualifying dependent lives there).
  • One vehicle of any value (must be used for transportation of the Medicaid applicant or household member).
  • Household goods and personal effects (no specific dollar limit; reasonable value).
  • Prepaid funeral and burial accounts up to $10,000 (per Connecticut Medicaid policy), or irrevocable burial trusts of any reasonable amount.
  • Term life insurance (no cash value, no asset value).
  • Whole life insurance with combined face value at or below $1,500 (cash value is countable above this threshold).
  • Retirement accounts (IRA, 401(k)) in payout status — required minimum distributions are counted as income, but the account principal is exempt.
  • Connecticut Long-Term Care Partnership-protected assets (dollar-for-dollar protection equal to LTC insurance benefits paid).
  • Property essential to self-support (small business, rental property generating income, farmland).
  • Special needs trusts and pooled trusts properly established under federal authority (42 USC 1396p(d)(4)(A) and (C)).

Countable Assets Under HUSKY C in 2026

  • Bank checking and savings accounts (in any amount above the $1,600 individual limit).
  • Certificates of deposit (CDs) and money market accounts.
  • Brokerage accounts including stocks, bonds, mutual funds, ETFs (current market value).
  • Cash value of whole life insurance above $1,500 combined face value threshold.
  • Annuities not meeting the federal Medicaid annuity requirements (must be irrevocable, non-assignable, actuarially sound, and name the state as remainder beneficiary).
  • Real property other than the primary residence (rental property, vacation home, raw land).
  • Second and subsequent vehicles.
  • Boats, RVs, and other recreational vehicles.
  • Coin and stamp collections, jewelry beyond reasonable personal use, art and antiques held as investment.
  • Loans owed to the applicant by family members or others.
  • Trust assets where the applicant has access to principal.

Spend-Down: Excess Income Medicaid (MED Plan)

The 60-Month Look-Back and Transfer Penalty

Sources: CMS Transfer of Assets

Spousal Impoverishment: CSRA, MMMNA, and Snapshot Date

Connecticut Long-Term Care Partnership Program

Sources: CT Partnership for Long-Term Care

Permitted Transfers That Do Not Trigger Penalty

Transfers Exempt From the 60-Month Look-Back Penalty

  • Transfers to a spouse for any reason (including transfers from the institutionalized spouse to the community spouse to allow the community spouse to retain assets up to the CSRA).
  • Transfers to a disabled child of any age (where the child meets SSI disability standards).
  • Transfers to a special needs trust (SNT) or pooled trust properly established under 42 USC 1396p(d)(4)(A) for a disabled child or 1396p(d)(4)(C) for a disabled individual.
  • Transfer of the home to a child caregiver who lived in the home with the applicant for at least two years prior to institutionalization and who provided care that allowed the applicant to remain at home.
  • Transfer of the home to a sibling who has an equity interest in the home and who lived in the home for at least one year prior to institutionalization.
  • Transfer of the home to a minor child or disabled child of any age.
  • Transfers proven to have been made exclusively for a purpose other than to qualify for Medicaid (e.g., regular charitable giving consistent with a long-established pattern, payment for goods or services received at fair market value).
  • Transfers that have been returned to the applicant in full (the penalty is eliminated if the transferred assets are returned).

Estate Recovery After Death

Sources: CT DSS Estate Recovery

When to Start Planning: The Five-Year Window

Sources: CT Bar Association Lawyer Referral, NAELA

Plan for HUSKY C and Long-Term Care

Frequently Asked Questions

What is the HUSKY C asset limit in Connecticut for 2026?
The basic HUSKY C asset limit is $1,600 for an individual and $2,400 for a couple. For married couples with one spouse needing LTSS, the community spouse retains the Community Spouse Resource Allowance of $30,828 minimum to $154,140 maximum in 2026 (in addition to the institutionalized spouse’s $1,600 allowance).
Is my home counted for HUSKY C eligibility?
The primary residence is exempt for HUSKY C medical coverage. For LTSS, home equity up to $730,000 in 2026 is exempt; equity above that must be reduced before LTSS eligibility. If a spouse, minor child, or disabled child lives in the home, the entire equity is exempt regardless of value.
What is the 60-month look-back?
The 60-month look-back is the federal rule that requires LTSS applicants to disclose all asset transfers in the 60 months before applying. Transfers made for less than fair market value trigger a penalty period during which Medicaid will not pay for LTSS. The penalty is calculated by dividing the transfer amount by the Connecticut average monthly nursing home cost (approximately $15,200 in 2026).
Can I give my house to my children to qualify for Medicaid?
Generally no — gifting a house within 60 months of an LTSS application triggers a substantial penalty period. There are limited exceptions: transfers to a spouse, transfers to a disabled child, transfers to a child caregiver who lived in the home for at least two years providing care, and transfers to a sibling with an equity interest. A Connecticut elder law attorney should review any planned transfer.
What is the Community Spouse Resource Allowance in 2026?
The CSRA in 2026 is a minimum of $30,828 and a maximum of $154,140 (federal limits Connecticut applies). The community spouse retains one-half of the couple’s combined countable assets on the snapshot date, capped at the maximum and floored at the minimum. The community spouse’s CSRA is in addition to the institutionalized spouse’s $1,600 asset limit.
How does the Connecticut Long-Term Care Partnership work?
A qualifying Partnership LTC insurance policy protects assets dollar-for-dollar equal to the benefits paid. A policy that pays $250,000 in benefits before HUSKY C application allows the policyholder to retain $250,000 in additional assets above the standard $1,600 limit. Protected assets are also exempt from estate recovery.
What is excess income spend-down?
Spend-down is the process by which an individual with income above the basic HUSKY C limit reduces excess income each month by incurring qualifying medical expenses. Once incurred medical expenses meet the excess income amount, HUSKY C coverage begins for the remaining days in the spend-down period (typically 6 months). For long-term care patients, the spend-down is usually met immediately because of the cost of care.
Will Connecticut seek to recover Medicaid benefits from my estate after death?
Yes, for LTSS benefits paid on behalf of recipients age 55 or older. Estate recovery applies only to probate assets (not assets passing by joint tenancy, beneficiary designation, or trust). Recovery is deferred while a surviving spouse, minor child, or disabled child survives. Partnership-protected assets are exempt from recovery.

Frequently Asked Questions

What is the HUSKY C asset limit in Connecticut for 2026?
The basic HUSKY C asset limit is $1,600 for an individual and $2,400 for a couple. For married couples with one spouse needing LTSS, the community spouse retains the Community Spouse Resource Allowance of $30,828 minimum to $154,140 maximum in 2026 (in addition to the institutionalized spouse's $1,600 allowance).
Is my home counted for HUSKY C eligibility?
The primary residence is exempt for HUSKY C medical coverage. For LTSS, home equity up to $730,000 in 2026 is exempt; equity above that must be reduced before LTSS eligibility. If a spouse, minor child, or disabled child lives in the home, the entire equity is exempt regardless of value.
What is the 60-month look-back?
The 60-month look-back is the federal rule that requires LTSS applicants to disclose all asset transfers in the 60 months before applying. Transfers made for less than fair market value trigger a penalty period during which Medicaid will not pay for LTSS. The penalty is calculated by dividing the transfer amount by the Connecticut average monthly nursing home cost (approximately $15,200 in 2026).
Can I give my house to my children to qualify for Medicaid?
Generally no — gifting a house within 60 months of an LTSS application triggers a substantial penalty period. There are limited exceptions: transfers to a spouse, transfers to a disabled child, transfers to a child caregiver who lived in the home for at least two years providing care, and transfers to a sibling with an equity interest. A Connecticut elder law attorney should review any planned transfer.
What is the Community Spouse Resource Allowance in 2026?
The CSRA in 2026 is a minimum of $30,828 and a maximum of $154,140 (federal limits Connecticut applies). The community spouse retains one-half of the couple's combined countable assets on the snapshot date, capped at the maximum and floored at the minimum. The community spouse's CSRA is in addition to the institutionalized spouse's $1,600 asset limit.
How does the Connecticut Long-Term Care Partnership work?
A qualifying Partnership LTC insurance policy protects assets dollar-for-dollar equal to the benefits paid. A policy that pays $250,000 in benefits before HUSKY C application allows the policyholder to retain $250,000 in additional assets above the standard $1,600 limit. Protected assets are also exempt from estate recovery.
What is excess income spend-down?
Spend-down is the process by which an individual with income above the basic HUSKY C limit reduces excess income each month by incurring qualifying medical expenses. Once incurred medical expenses meet the excess income amount, HUSKY C coverage begins for the remaining days in the spend-down period (typically 6 months). For long-term care patients, the spend-down is usually met immediately because of the cost of care.
Will Connecticut seek to recover Medicaid benefits from my estate after death?
Yes, for LTSS benefits paid on behalf of recipients age 55 or older. Estate recovery applies only to probate assets (not assets passing by joint tenancy, beneficiary designation, or trust). Recovery is deferred while a surviving spouse, minor child, or disabled child survives. Partnership-protected assets are exempt from recovery.
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