Spousal Impoverishment Rules Arkansas: How Much the At-Home Spouse Keeps

What Spousal Impoverishment Protections Do

When one spouse enters a nursing home and applies for Medicaid, the federal spousal impoverishment rules prevent the state from requiring the at-home spouse (the "community spouse") to deplete all their assets and income to pay for care. Without these protections, the community spouse could be left with almost nothing — unable to pay the mortgage, buy groceries, or maintain health insurance.

Arkansas applies these federal protections through two mechanisms: the Community Spouse Resource Allowance (CSRA) for assets and the Minimum Monthly Maintenance Needs Allowance (MMMNA) for income. Both have specific 2026 figures that determine exactly how much the community spouse keeps.

The Community Spouse Resource Allowance (CSRA)

The CSRA determines how much of the couple's combined countable assets the community spouse can retain. Arkansas uses a 50% split formula bounded by a floor and a ceiling:

• Floor (minimum): $32,532 in 2026
• Ceiling (maximum): $162,660 in 2026
• Formula: Half the couple's total countable assets, clamped between the floor and ceiling

The calculation works like this: DHS pools all countable assets owned by either or both spouses — regardless of whose name is on the account — and divides by two. If that half falls below $32,532, the community spouse keeps $32,532 (or all assets if total is less). If half exceeds $162,660, the community spouse keeps $162,660.

Here's how it plays out at different asset levels:

$350,000 in combined assets. Half is $175,000, which exceeds the $162,660 ceiling. The community spouse keeps $162,660. The applicant spouse can keep $2,000. The family must spend down the remaining $185,340 before the applicant qualifies.

$150,000 in combined assets. Half is $75,000, within the range. The community spouse keeps $75,000. After the applicant's $2,000, the family spends down $73,000.

$25,000 in combined assets. Half is $12,500, below the $32,532 floor. The community spouse keeps everything — the total is below the combined protected amount. No spend-down required.

The applicant spouse is limited to $2,000 in countable assets in all scenarios.

The Monthly Income Allowance (MMMNA)

The MMMNA protects the community spouse's monthly income. If their independent income (their own Social Security, pension, or employment) falls below a minimum threshold, a portion of the applicant spouse's income can be diverted to them.

2026 figures (effective July 1, 2026 through June 30, 2027):

• MMMNA floor: $2,705 per month
• MMMNA ceiling: $4,066.50 per month

If the community spouse earns $1,800 per month from Social Security, they're $905 short of the $2,705 floor. That shortfall can be transferred from the applicant spouse's income before calculating the patient liability paid to the nursing facility.

The community spouse can push their allowance above $2,705 toward the $4,066.50 ceiling if their actual housing costs exceed the Excess Shelter Standard of $811.50 per month (30% of the MMMNA floor). Housing costs that count include rent or mortgage payments, property taxes, homeowner's insurance, and the Standard Utility Allowance of $342 per month.

The formula: MMMNA floor + (actual shelter costs minus $811.50), capped at $4,066.50. If the community spouse's mortgage, taxes, insurance, and utilities total $1,500 per month, the excess is $1,500 - $811.50 = $688.50. Their adjusted allowance becomes $2,705 + $688.50 = $3,393.50.

How Income Diversion Works Through the Miller Trust

If the applicant spouse uses a Qualified Income Trust (Miller Trust) because their income exceeds the $2,982 monthly cap, the spousal income allowance is distributed from the trust as a second priority — after the $40 personal needs allowance but before bank fees, insurance premiums, or the patient liability payment.

This means the community spouse's income is protected before the nursing facility gets paid. The diversion amount is the difference between the community spouse's calculated MMMNA and their own independent income. If the community spouse's MMMNA is $3,393.50 and they earn $1,800 on their own, $1,593.50 per month is diverted from the applicant's trust.

Increasing the CSRA Through a Court Order or Fair Hearing

If the standard CSRA isn't enough to support the community spouse, two paths exist for increasing it:

Fair hearing. The community spouse can request an administrative hearing through DHS to argue that the standard allowance doesn't generate enough income to cover their living expenses. If the hearing officer agrees, the CSRA can be increased to the amount needed to produce adequate income (for example, to generate interest or returns that supplement the MMMNA).

Court order. A family court judge can order a higher CSRA if the community spouse can demonstrate financial hardship. This is less common but available when the administrative hearing doesn't provide adequate relief.

Both approaches require documentation: household budgets, utility bills, medical expenses, and evidence that the standard allocation leaves the community spouse unable to maintain basic needs.

The Arkansas Medicaid Long-Term Care & Asset Protection Guide includes a spousal protection calculator worksheet that walks through the CSRA and MMMNA calculations using your family's actual numbers — asset totals, individual income, and housing costs — so you can see exactly what the community spouse retains before filing the application.

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