Oregon Medicaid Countable Assets: What Counts Toward the $2,000 Limit
Oregon Medicaid Countable Assets: What Counts Toward the $2,000 Limit
Your parent has $1,800 in savings and you think they qualify for Medicaid. Then the eligibility worker asks about the IRA. In Oregon, retirement accounts are fully countable — and that $85,000 IRA your parent has been drawing down just pushed them $83,000 over the limit. This is the asset classification rule that catches more Oregon families off guard than any other.
The $2,000 Asset Limit
Oregon sets the countable resource limit at $2,000 for a single applicant applying for long-term care Medicaid (OSIPM pathway). For married couples where both apply, the combined limit is $4,000. When only one spouse applies, the applicant's countable assets must be at or below $2,000, while the community spouse retains a share under the CSRA (up to $162,660).
What Is Countable
Every asset below counts toward the $2,000 limit:
Bank accounts and cash: Checking, savings, CDs, money market accounts — all balances on the application date.
Retirement accounts: IRAs, 401(k)s, 403(b)s, and other retirement plans are fully countable in Oregon, regardless of whether distributions are being taken. Both the applicant's and the spouse's retirement accounts are counted. This is a major difference from some states that treat retirement accounts in payout status as income rather than assets.
Investment accounts: Stocks, bonds, mutual funds, brokerage accounts.
Life insurance: Cash surrender value of whole life or universal life policies when the total face value exceeds $1,500. Term life insurance has no cash value and is not counted.
Non-home real estate: Rental property, vacant land, second homes — all at current market value.
Other: Savings bonds, promissory notes owed to your parent, and any other liquid assets.
What Is Exempt
These assets do not count toward the $2,000 limit:
Primary residence: Exempt if your parent's equity is $752,000 or less (2026 CPI-adjusted limit) and either:
- Your parent currently lives there, or
- Your parent has filed a formal "intent to return" statement, or
- A spouse, child under 21, or blind/disabled child lives there
When a spouse lives in the home, the $752,000 equity limit is waived entirely.
One vehicle: Any value, exempt if used for the applicant's or spouse's transportation.
Household goods and personal effects: Furniture, clothing, appliances — exempt regardless of value.
Burial arrangements:
- Designated burial fund up to $1,500 (must be held in a separate, earmarked account)
- Irrevocable prepaid funeral contracts of any value — this is a key spend-down tool
Oregon ABLE Savings Plan: For individuals whose disability onset was before age 26, up to $20,000 in contributions are excluded.
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Trusts and Asset Classification
Revocable trusts: Under OAR 461-145-0540, any asset in a revocable trust is fully available and counts toward the $2,000 limit. A revocable living trust does not shelter assets from Medicaid in Oregon.
Irrevocable trusts: Assets transferred to an irrevocable trust are generally excluded from countable resources, but the transfer is subject to the 60-month lookback. A Medicaid Asset Protection Trust funded more than five years before the application can effectively remove assets from both the countable total and the recoverable estate.
Special needs and pooled trusts: Irrevocable trusts for disabled individuals under 65, or pooled trusts managed by non-profit entities like the Arc of Oregon, are excluded — provided they include a mandatory state-payback provision.
Common Spend-Down Strategies
If your parent's countable assets exceed $2,000, legitimate spend-down strategies convert countable resources into exempt ones:
- Pay off the mortgage on the primary home
- Complete home modifications (wheelchair ramps, grab bars, walk-in showers)
- Purchase or repair the exempt vehicle
- Fund an irrevocable prepaid funeral and burial plan
- Pay outstanding debts (credit cards, medical bills)
- Replace worn household goods and appliances
The Oregon Medicaid Long-Term Care & Asset Protection Guide includes a complete asset classification worksheet and spend-down planner that walks through each category with Oregon-specific exemption rules.
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Download the Oregon — Medicaid Long-Term Care Eligibility Checklist — a printable guide with checklists, scripts, and action plans you can start using today.