One of the most common worries we hear from families exploring long-term care is, “Will I have to sell my car to qualify for Medicaid?” It’s a stressful question tied to independence, dignity, and the simple ability to get around.
For most people in Ohio, the answer is a clear “no.” Not only can you keep your car, but for your primary vehicle, its value likely doesn’t matter at all.
That’s right. Whether you drive a ten-year-old sedan or a brand-new SUV, Ohio’s rules are designed to make sure that needing care doesn’t mean losing your essential transportation. But like many aspects of Medicaid, the details matter, especially if your household has more than one vehicle.
Ohio’s One-Vehicle Exemption Rule
When you apply for Medicaid for long-term care, the state looks at your assets to determine eligibility. Some assets, like your primary home (up to a certain equity limit), are typically “exempt,” meaning they don’t count against you for eligibility purposes.
However, Medicaid may take your home (or other “exempt” assets) after you pass without further planning. Other assets, like most savings in a bank account, are “countable.”
In Ohio, as of 2025, a single applicant can generally have no more than $2,000 in countable assets. So, where does your car fit in?
According to the Ohio Administrative Code, every Medicaid applicant household is allowed to exempt one motor vehicle.
For this one exempt vehicle:
- The value is irrelevant. It doesn’t matter if it’s worth $500 or $50,000.
- The age or type doesn’t matter. It can be a car, truck, or van.
- Its purpose doesn’t matter. You don’t have to prove it’s used for medical appointments. It can be used by anyone in the household for any reason.
This single exemption is a powerful tool in asset protection planning and provides significant peace of mind for applicants and their families.
Clearing Up Common Car Confusion
Misinformation about Medicaid can cause unnecessary anxiety. Here are a few common myths about vehicle ownership.
Myth #1: My car has to be worth less than a certain amount, like $5,000.
Fact: This is a common point of confusion, often borrowed from other programs or states. In Ohio, there is no value limit on your one exempt vehicle for long-term care Medicaid.
Myth #2: I can only keep my car if I use it for doctor’s appointments.
Fact: The household’s primary vehicle can be used for any purpose, like groceries, visiting family, or Sunday drives. Its use is not restricted.
Myth #3: I can’t own a newer or “luxury” car.
Fact: The make, model, and condition of your primary vehicle do not affect its exempt status. Medicaid is concerned with the asset’s function and number, not its brand.
What to Do When a Second Vehicle Puts You Over the Limit
This is where proactive Medicaid planning becomes vital. Let’s use an example: John is single and has exempted his $25,000 Camry, but also has an $18,000 Ford F-150 to deal with. Here’s the step-by-step process.
Step 1: Calculate the Vehicle’s Equity
Equity is what the car is worth minus what you owe on it. You can find the Fair Market Value (FMV) using resources like Kelley Blue Book.
- Ford F-150 FMV: $18,000
- Loan Balance: $0
- Countable Equity: $18,000
Step 2: Add the Equity to Your Other Assets
This $18,000 is added to his other countable assets (like non-qualified savings accounts). Since the asset limit for John is $2,000, this truck makes him ineligible.
Step 3: Develop a Strategic Solution
John is over the asset limit, but he has options. This is known as a “spend-down.”
Do not simply give the car to a child or grandchild. Gifting an asset within Medicaid’s five-year “look-back” period can trigger a penalty, making you ineligible for benefits for a period of time.
Instead, he can use legitimate spend-down strategies, such as:
- Sell the second car. He can sell the truck for its fair market value.
- Reposition the proceeds. With the $18,000 cash from the sale, he can pay for things that Medicaid allows without penalty. This includes paying off the mortgage, credit card debt, pre-paying for funeral expenses, or making repairs to his home.
Your Next Step: From Learning to Planning
Understanding Ohio’s vehicle exemption rule is a great first step. You now know that your primary car is safe and have a framework for thinking about any additional vehicles.
The key takeaway is that one car is simple, but multiple vehicles require a thoughtful strategy. These rules are intricate, and a small misstep, like gifting a car instead of selling it, can lead to significant delays and penalties.
Even if your car is “exempt” for eligibility, it might be lost later when you pass due to Medicaid’s estate recovery rules. This is why sitting down with a law firm that does elder law is so important. The rules are complicated and planning is crucial.
Handling estate planning and long-term care is a journey, not a single decision. If you’re starting this process and want to make sure you’re making the right choices for your family’s future, our team at Brumbaugh Law Firm is here to provide clarity and guidance.
