Minnesota ranks among the priciest states for care. Understanding your funding options turns an impossible situation into a manageable one.
Annual Care Cost Comparison (2024–2026 Estimates)
Full-time home care (44 hours/week) often sits between assisted living and nursing home costs.
| Type of Care | Median Monthly Cost | Median Annual Cost |
|---|---|---|
| Homemaker Services | $7,627 | $91,520 |
| Home Health Aide | $8,198 | $98,384 |
| Assisted Living | $5,511 – $8,635 | $66,132 – $103,620 |
| Nursing Home (Private) | $14,283 | $171,404 |
The Medicare Reality Check
Medicare is not a long-term solution for home care. It only covers care if:
- You are certified as homebound by a doctor.
- The care is intermittent and skilled (e.g., Physical Therapy, Wound Care).
- It is not custodial care (help with bathing, dressing, or meals is not covered).
Medical Assistance (MA) Eligibility 2026
To qualify for long-term care funding in Minnesota, you must meet strict financial limits:
Single Applicants
- Monthly Income: $1,305
- Asset Limit: $3,000
Married Couples (Both Applying)
- Monthly Income: $2,610
- Asset Limit: $6,000
*Spousal Impoverishment Protections allow a healthy "community spouse" to keep up to $162,660 in assets.
Minnesota’s Waiver & Benefit Programs
- Elderly Waiver (EW): Funds home care for those 65+ who qualify for Medical Assistance.
- Alternative Care (AC): For those who don't yet qualify for MA but have low income/assets.
- VA Aid and Attendance: Monthly payments (up to $2,874 for married veterans) for those needing daily help.
- LTC Partnership Program: Provides "dollar-for-dollar" asset protection—keep one extra dollar of savings for every dollar your insurance pays out.
Strategic Planning Steps
Avoid penalties from the state's 5-year look-back period by taking these actions early:
- Spend Down Strategically: Pay for exempt assets like a car, home modifications, or funeral expenses.
- Home Equity: Use a reverse mortgage or HELOC to fund private care while keeping the home exempt from asset tests.
- Immediate Annuities: Convert lump sums into income streams (requires professional guidance to meet MA rules).
- Consult Experts: Speak with an elder law attorney to set up irrevocable trusts.