The policy provisions for hospitals can be found in the Alabama Medicaid Agency Administrative Code, 2025

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The Medicaid income limit for individuals eligible for the Nursing Home (institutional) program is $2,901 per month. The resource limit is $2,000 as of the first day of the month. Home and Community Based Waivers: The income limits for these waivers are as follows: Elderly and Disabled Waiver is $2,901 per month.
Medicaid patients get medical care from a variety of sources. Covered medical services include dental, eye and hearing care, lab and x-ray services as well as renal dialysis and transplant coverage.
Federal law requires Alabama to seek repayment for the cost of all long-term care services paid for by Medicaid, including related drug and hospital benefits.
Medicaid pays for emergency outpatient services when there is a certified emergency. A certified emergency is when a person has a serious health problem that he or she reasonably believes could cause serious damage to your health or your body if you do not get medical care right away.
Medicaid allows individuals to retain their primary residence, one vehicle, furniture, and personal property. Upgrading or improving these items is a great way to spend down assets for Medicaid and ensure the spouse at home has what they need to continue living comfortably at home and age in place. Pay off debts.
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Spend-Down of Money. Medicaid looks at resources on the first moment of the first day of the month. The countable resource limit for an individual is $2,000. If the total value of the couples countable assets is $27,000 or less, spend down of the assets for the institutionalized spouse will not be required.
In general, the following are the primary exempt assets: Home, no matter what its value. Personal belongings and household goods. One car or truck. Income-producing real estate. Burial spaces and certain related items for applicant and spouse. Up to $1,500 designated as a burial fund for applicant and spouse.
NOTE: A lien may be required. The resource limit for Nursing Home, Hospital, and ICF-IID Medicaid is $2,000 before the first day of the month. This means that in order to be eligible for Medicaid you must not have more than $2,000 in resources on the first day of any given month.

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