While nursing home bills accrue, the healthy or well spouse, known as the “Community Spouse,” [Note 1] struggles to identify and keep income and resources that are necessary to support herself. [Note 2]. To remedy this situation, Congress enacted spousal impoverishment provisions as part of the Medicare Catastrophic Coverage Act of 1988 (“MCCA”). [Note 3].
The spousal impoverishment provisions were designed to end the pauperization of Community Spouses by allowing them to protect a sufficient, but not excessive, spousal share of the marital resources and income to meet their own needs. Meanwhile, the Institutionalized Spouse is in a nursing home at Medicaid’s expense. The spousal impoverishment provisions are codified at 42 U.S.C. § 1396r-5.
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