By Axis Estate Planning | Troy, MI
Plan for your future. Protect your legacy.
A sweeping new federal law—unofficially dubbed the “Big Beautiful Bill”—has made headlines for its impact on Medicaid policy and long-term care funding. And while the name may sound lighthearted, the consequences are anything but.
This legislation introduces several key changes that could affect your ability—or your loved one’s ability—to qualify for and afford long-term care. If you plan to rely on Medicaid to help cover skilled nursing care in the future, it’s essential to understand how these changes may affect you—and why planning ahead is now more critical than ever.
Let’s take a closer look at the most significant updates and how they could shape your long-term care strategy.
Home Equity Cap Set—and Frozen—at $1 Million
Under current Medicaid rules, a portion of your home’s value is excluded when determining eligibility. States can set this home equity cap within a range that adjusts annually with inflation—between $730,000 and $1,097,000.
But starting January 1, 2028, the new law locks the cap at $1,000,000 nationwide—permanently. That means:
- No more inflation adjustments
- A growing risk of being disqualified for owning a home whose value exceeds the cap
For many Michigan families, especially those whose home is their most significant asset, this shift could create unexpected roadblocks when applying for Medicaid down the line.
If your home represents a major part of your net worth, the time to act is now. Strategic planning—such as trust-based solutions or gifting strategies—can help shield your home’s value before this cap becomes a barrier.
Retroactive Coverage Reduced from 90 Days to 30
Currently, Medicaid allows for up to 90 days of retroactive coverage for qualifying care expenses incurred before a formal application is filed. This grace period often helps families manage the financial shock of an unexpected nursing home admission.
The new law shortens that coverage window to just 30 days.
This means delays in filing—even by a few weeks—could result in families bearing thousands of dollars in uncovered costs. Whether due to paperwork processing, gathering documentation, or medical emergencies, shorter timelines raise the stakes.
To avoid these financial gaps, your long-term care plan should include:
- Updated powers of attorney and advance directives
- A clear roadmap for when and how to apply for Medicaid
- Help from an experienced attorney to avoid costly errors or delays
Long-Term Care Facilities Face Financial Pressure
Behind the scenes, the “Big Beautiful Bill” includes substantial cuts to federal Medicaid funding, leading to concerns from care providers. The ripple effects could be far-reaching:
- Reduced staffing or service levels
- Delays in facility maintenance or upgrades
- In some areas, closures of underfunded or rural nursing homes
A previously proposed staffing rule—which would have required 24/7 RN coverage and higher staff-to-resident ratios—was overturned. However, financial stress on providers remains a concern, especially with a new moratorium on provider taxes, which states have historically used to supplement Medicaid funding.
While these changes may not be immediately visible, they could impact the quality of care, bed availability, and wait times for patients in the years ahead.
The Bottom Line: Plan Now, Not Later
Now that the “Big Beautiful Bill” is law, the message is clear: eligibility for Medicaid will be harder to achieve, and the quality of long-term care may become more uneven.
For families in Troy, Metro Detroit, and across Michigan, proactive estate planning is no longer optional—it’s essential.
At Axis Estate Planning, we help clients:
- Evaluate their home equity and implement legal strategies to preserve it
- Update estate documents like trusts, powers of attorney, and advance directives
- Design flexible long-term care plans that align with the new rules and still protect what matters most
Whether you’re planning for yourself, a spouse, or aging parents, our team is here to guide you through every step—with compassion, clarity, and the deep expertise these times demand.
Let’s Build a Plan That Protects Your Legacy
Visit Us: 900 Wilshire Drive, Suite 105, Troy, MI 48084
Call Us: (248) 251-1001
Learn More: www.axisattorneys.com
