To Our Clients and Friends:
Below are updated numbers for 2021 that are frequently used in our Elder Law practice and which may be of interest to clients:
Medi-Cal Spousal Impoverishment Numbers for 2021
The new Community Spouse Resource Allowance (“CSRA”) is $130,380.
The Minimum Monthly Maintenance Needs Allowance (“MMMNA”) for the “At- Home” Spouse is $3,259.50.
The “CSRA” is the amount of savings or other countable resources, and the “MMMNA” is the amount of monthly income, which the At-Home spouse can retain when the Ill Spouse needs a Medi-Cal subsidy to help with the cost of nursing home care. The goal of Congress in setting these “safe harbors” was to avoid the spousal impoverishment of the At-Home spouse when the other needed care.
Aged & Disabled Federal Poverty Level Program: These are the monthly income thresholds; persons whose income is below these thresholds may qualify for No Share of Cost Medi-Cal when receiving Medi-Cal benefits at home:
Single Individual: $1,468 (up from $1,294);
Couple: $1,983 (up from $1,747).
Gift and estate tax figures
Federal estate tax exemption: $11.7 million for individuals, $23.4 million for married couples;
Lifetime tax exclusion for gifts: $11.7 million;
Generation-skipping transfer tax exemption: $11.7 million;
Annual gift tax exclusion: $15,000 (unchanged).
Long-Term Care Premium Deductibility Limits for 2021
The Internal Revenue Service has announced the 2021 limitations on the deductibility of long-term care insurance premiums from income. Any premium amounts above these limits are not considered to be a medical expense and hence are not deductible. The deductibility increases with age:
|Attained age before the close of the taxable year||Maximum deduction|
|40 or less||$450|
|More than 40 but not more than 50||$850|
|More than 50 but not more than 60||$1,690|
|More than 60 but not more than 70||$4,520|
|More than 70||$5,640|
Veterans Benefits To Qualify for Pension:
Asset limit: $130,773 (effective 12/1/2020)
Penalty Period Rate for Prior Gift Transfers: $2,295. This number is divided into the value of any disqualifying gifts made within 3 years of application and the result is the number of months of disqualification from eligibility to receive a pension.
Maximum Monthly Pension Rates for Veterans or their surviving spouses who need the highest level of care in their care setting, i.e. Aid and Attendance:
|Surviving spouse of Veteran||$1,244|
|Vet married to Vet (both with A&A)||$3,071.75|
Medicare Premiums, Deductibles and Copayments for 2021
- Part B premium: $148.50/month (was $144.60)
- Part B deductible: $203 (was $198)
- Part A deductible: $1,484 (was $1,408)
- Co-payment for hospital stay days 61-90: $371/day (was $352)
- Co-payment for hospital stay days 91 and beyond: $742/day (was $704)
- Skilled nursing facility co-payment, days 21-100: $185.50/day (was $176)
Part B premiums for higher-income beneficiaries: Individuals with annual incomes above $88,000 and married couples with annual incomes above $176,000 will pay more, beginning at a monthly premium of $207.80, and increasing to as much at $504.90 per month for those with annual incomes above $500K for singles and above $750K for married couples
Supplemental Security Income (“SSI”) Benefits for 2021
The new monthly Supplemental Security Income (SSI) payment benefit in California is:
For a single person: $954.72; For a married couple: $1,598.14
For beneficiaries who are blind: a single person’s monthly benefit is $1,011.23 and a married couple’s (where both are blind) is $1,751. Where one is blind and one spouse is aged or disabled, the benefit is $1,691.65.