What do the Spousal Impoverishment Rules protect?

The Spousal Impoverishment Rules are designed to protect the financial resources of the community spouse, who is the spouse not receiving long-term care. When one spouse requires long-term care and applies for Medicaid, there is a risk that the couple's combined assets could be significantly reduced or even depleted due to the costs associated with the care.

These rules establish a minimum amount of income and assets that the community spouse is allowed to keep to prevent them from becoming impoverished while their partner receives necessary care. This approach helps ensure that the community spouse can maintain their standard of living and not be excessively burdened financially during a challenging time.

Therefore, the correct response highlights the intention of these rules to safeguard the community spouse from potentially losing all their assets, ensuring they have adequate resources to support themselves while their partner receives care.