The Michigan Medicaid look-back period: how the 60-month review works
By Bennett Dixon, founder of MedicaidChecklist · Every figure cited to an official source · Last verified
When someone applies for long-term-care Medicaid in Michigan, the agency reviews their financial history for the 60 months before the application — the “look-back period.” Money or property given away, or sold for less than fair market value, during that window can create a penalty period during which Medicaid will not pay for long-term care. The rule exists in every state; the length and the penalty math are published, state-specific figures.
Michigan look-back
60 months
What it means in paperwork
5 years of records
Bank and financial account statements covering the 60-month look-back
Michigan's published transfer rules
Divestment penalty: 60-month look-back on gifts and below-value transfers
When you apply for nursing home or waiver Medicaid, MDHHS reviews all asset transfers in the 60 months before your 'baseline date.' Giving away money or property for less than fair market value ('divestment') triggers a penalty period during which Medicaid will not pay for your long-term care. The penalty length equals the amount given away divided by the average monthly private nursing home cost, $12,216.30 for 2026 (BEM 405). There is no maximum penalty period, and even small transfers count.
official sourceWhat the look-back is not
It is not a bar on applying, and a transfer in the window is not automatically a denial — it is a documentation and timing question that the agency resolves from the records you provide. If there were gifts or transfers in the window, that is precisely the situation to put in front of an elder-law attorney before filing; a prepared, specific question costs far less to answer than an open-ended engagement.
Look-back periods in other states
| State | Look-back period | Year |
|---|---|---|
| California | 30 months | 2026 |
| Michigan | 60 months | 2026 |
| New York | 60 months for nursing-home applications; no look-back currently applies to community (home-care) applications | 2026 |
| Ohio | 60 months | 2026 |
| Pennsylvania | 60 months | 2026 |
| Texas | 60 months | 2026 |
The concept in plain English: the Medicaid look-back period, explained.
The figures on this page are Michigan's published 2026 rules, cited to the official source and last verified 2026-07-14. Eligibility decisions are made only by Michigan Department of Health and Human Services (MDHHS) — no checklist, calculator, or company can decide for it. Applying is always free through the state agency.
A note on limits of this page: whether and how any rule applies to a specific family is a question only the state agency — or an elder-law attorney — can answer. MedicaidChecklist publishes the rules and helps you prepare and organize the application; it does not give legal advice, and nothing here is a recommendation to move, transfer, or restructure money or property.
Michigan guideMichigan income limitMichigan asset limit
Sources
- SSI-related Medicaid asset limit is $9,950 for one person and $14,910 for two effective January 1, 2026; home equity limit for long-term care is $752,000 effective January 1, 2026 (equity cap waived if spouse, child under 21, or blind/disabled child lives in home) — mdhhs-pres-prod.michigan.gov
- 2026 income cap limit (300% of SSI federal benefit rate) is $2,982/month for an individual; 2026 spousal impoverishment standards: CSRA minimum $32,532, maximum $162,660; MMMNA maximum $4,066.50; federal minimum home equity limit $752,000 — www.medicaid.gov
- Community spouse income allowance: the basic (minimum) monthly allowance is $2,705.00 and the maximum is $4,066.50, per BEM 546 as amended by BPB 2026-018 effective July 1, 2026 — mdhhs-pres-prod.michigan.gov
- Divestment look-back period is 60 months before the baseline date; penalty period = uncompensated value divided by average monthly private LTC cost, which is $12,216.30 for baseline dates in calendar year 2026; no maximum penalty period — mdhhs-pres-prod.michigan.gov
- Personal needs allowance (patient allowance) for nursing home residents is $60/month, $90/month for veterans; patient-pay amount deductions include community spouse income allowance, family allowance, and health insurance premiums — mdhhs-pres-prod.michigan.gov
- Medicaid monthly protected income levels (for the deductible/spend-down program) range from $341 to $408 for a group of one, by county shelter area — mdhhs-pres-prod.michigan.gov
- Applicants over the income limit can qualify through Michigan's medically needy spend-down; Michigan does not use Miller Trusts; nursing home asset limit $9,950 (2026) — www.medicaidplanningassistance.org
- MDHHS-1171 Assistance Application is the paper application; MI Bridges is the online application portal — www.michigan.gov
- DHS-4574 is the Medicaid application for patients of nursing facilities; DHS-4574-B Assets Declaration is used for the initial asset assessment; applications must be approved or denied within 45 days, or 90 days if disability is a factor — mdhhs-pres-prod.michigan.gov
- DHS-4574 application form states approval/denial within 45 days, or 90 days if disability is a factor — www.michigan.gov