The “Big Beautiful Bill”: What It Could Mean for Your Long-Term Care Planning

By The Lansky Law Firm | Memphis, TN Peace of Mind through Preparation. 

A newly passed federal law—unofficially called the “Big Beautiful Bill”—is making waves in the world of elder law and long-term care planning. While the name may sound lighthearted, the implications for Medicaid eligibility and funding are anything but.

If you or a loved one might need long-term care in the future—and plan to rely on Medicaid to help cover the cost—this bill brings significant changes that you need to know about. At The Lansky Law Firm, we want to ensure you stay ahead of these changes and protect what you’ve built.

Home Equity Cap Set—and Frozen—at $1 Million

Currently, Medicaid allows states to exempt a portion of a person’s home equity when determining eligibility for long-term care coverage. The allowable limit is typically adjusted each year and varies by state. In 2025, that range will be between $730,000 and $1,097,000.

However, effective January 1, 2028, the new law will impose a nationwide cap of $1,000,000—and that cap will be frozen permanently, with no inflation adjustments moving forward.

This could have serious consequences for homeowners—especially in areas where property values are rising quickly. A home that qualifies today could put someone over the limit in just a few years.

If your home represents a significant portion of your estate, now is the time to start planning. Without the right protections in place, more of your home’s value may count against you when applying for Medicaid.

Shortened Window for Retroactive Coverage

One of Medicaid’s current benefits is its ability to cover qualifying long-term care expenses up to 90 days prior to the date of application. This retroactive coverage helps families who find themselves in sudden crisis situations—like an unexpected nursing home admission.

The new law reduces that window to just 30 days.

This change means timing becomes critical. Delays in applying for Medicaid—even by a few weeks—could leave families responsible for thousands of dollars in uncovered care expenses. The importance of preparing your application early and having a plan in place cannot be overstated.

Pressure on Long-Term Care Facilities

In addition to changes affecting individual eligibility, the “Big Beautiful Bill” introduces major cuts to federal Medicaid funding—and long-term care providers are concerned.

These funding changes could lead to:

• Reduced care staff

• Longer wait times for available beds

• Postponed maintenance and upgrades

• Even potential facility closures, especially in underfunded or rural areas

Although a staffing regulation requiring 24/7 RN coverage was recently blocked, the pressure on facilities remains. The bill also includes a moratorium on provider taxes, which many states have used to boost Medicaid funding locally.

This means families will need to do their research early and identify reliable care providers in advance—before they’re faced with a crisis.

What This Means for You and Your Family

Now that the “Big Beautiful Bill” has passed, the message is clear: Medicaid benefits will be harder to secure, and quality care may be more difficult to access.

The solution? Proactive planning.

At The Lansky Law Firm, we recommend:

• Reviewing your home equity and exploring ways to protect it before 2028

• Updating your estate plan, including powers of attorney, advance directives, and trusts, to reflect current and future rules

• Speaking with an experienced elder law attorney to build a flexible long-term care plan that prepares your family for whatever lies ahead

We’re here to help you stay ahead of the law and in control of your future.

Let’s Build a Plan That Protects Your Legacy

Visit Us: 6800 Poplar Ave #225, Memphis, TN 38138

Call Us: (901) 767-7006

Learn More: www.lanskylawfirm.com