Can Medicaid take my house in Pennsylvania? No, not while you are living.
How Does Medicaid Treat Your Home
In Pennsylvania, your primary residence is generally protected when you apply for Medicaid (also called Medical Assistance). If you are living in the home and your equity is within the allowable limit of $752,000 (as of 2026), it is not counted against you for eligibility purposes.
However, this protection is not absolute. Medicaid is a needs-based program, and while it may help pay for long-term care, it also has a built-in cost recovery mechanism after your death.
What Is Medicaid Estate Recovery?
Under federal and Pennsylvania law, the state must attempt to recover certain Medicaid benefits paid on your behalf after you pass away. This is known as Estate Recovery.
If:
- You received Medicaid benefits at age 55 or older, and
- You owned your home at death in your name alone
then Pennsylvania may file a claim against your estate to recover the cost of your care. For many individuals, the home is the primary (or only) asset subject to this claim.
When Is Your Home Protected?
Even after death, your home may be protected from immediate recovery if certain individuals survive you, including:
- A spouse
- A child under age 21
- A blind or permanently disabled child of any age
In these cases, recovery is typically delayed or prohibited while those individuals are living or residing in the home. For example, Bob and Sue are married. Bob applies for and received Medicaid to pay for his stay at the nursing facility. Bob and Sue’s jointly owned home worth $400,000.00 is an exempt resource, meaning the value of the residence does not count towards the amount of money that Sue can keep as her protected spousal share. Sue dies unexpectedly in a car accident. Bob can continue on Medicaid, owning the residence. However, when Bob dies, the Commonwealth of Pennsylvania has a claim against the residence in Bob’s probate estate for up to the amount that Pennsylvania paid for Bob’s care. If that amount is $100,000.00, the state is entitled to that amount. The remaining $300,000.00 will be distributed to Bob’s heirs under his Will.
Why the Type of Home Ownership Matters
One of the most important—and often overlooked—factors is how your home is titled.
If your home passes through probate (for example, if it is owned solely in your name), it is subject to estate recovery. However, certain planning strategies may help reduce or avoid exposure, such as:
- Transferring ownership interests in advance (with careful planning)
- Using life estate deeds
- Placing the property in certain types of asset protection trusts
- Adding appropriate co-owners, where legally and practically appropriate
The timing of the planning is based upon individual circumstances, including health status and assets. These strategies must be implemented carefully to avoid Medicaid penalties, particularly the five-year look back period. You do not want to have your children personally liable for your nursing home expenses.
Planning to Protect Your Home Is Key
The risk to your home is not about losing it while you are alive—it is about what happens after your death. With proper elder law and estate planning, many Pennsylvania families can preserve the home or significantly reduce recovery exposure.
Is Your Home at Risk? ✔️
Use this quick checklist:
☐ Are you age 55 or older and receiving (or expecting to receive) Medicaid?
☐ Is your home titled in your name alone?
☐ Do you lack a surviving spouse or protected child?
☐ Will your home need to go through probate when you pass away?
☐ Have you done no advance Medicaid or estate planning?
If you checked two or more boxes, your home may be at risk from Medicaid estate recovery.
Final Thought
Medicaid does not take your home while you are living—but without proper planning, it can place a claim after your death. Understanding the rules now gives you the opportunity to make informed decisions and protect what matters most. Educate yourself on how to avoid Medicaid Estate Recovery, and stop in to our Williamsport office for one of our free Open-Door Sessions with a Certified Elder Law Attorney.