If you or your spouse are considering the Program for All Inclusive Care for the Elderly (PACE) in Massachusetts, there’s a significant change that could affect your financial planning. Starting January 15, 2026, new federal regulations fundamentally alter how MassHealth treats assets for married couples enrolled in PACE.
What’s Changing?
For years, PACE has stood apart from other MassHealth long-term care programs when it came to spousal asset protection. One of the most attractive features of PACE for married couples was that there was no community spouse asset limit. This meant that the spouse remaining in the community (the “community spouse”) could retain all their assets without needing to spend them down or tie them up in a Medicaid annuity before their partner could qualify for PACE benefits.
This advantage made PACE particularly appealing for couples who wanted to ensure that the healthy spouse could maintain their financial security while their partner received comprehensive care.
The New Reality After January 15, 2026
Starting January 15, 2026, this beneficial exception disappeared. MassHealth implemented a community spouse asset limit for PACE participants, bringing the program in line with other long-term care options. Since this date, the rules are uniform across all MassHealth long-term care programs, including PACE, the Frail Elder Waiver, and Nursing Home Long Term Care (LTC).
For 2026, the community spouse asset limit has been set at $162,660. This means that couples will need to plan carefully to ensure they meet the asset requirements while still protecting as much of their resources as possible.
What This Means for You
This change doesn’t mean PACE is no longer a valuable option—it remains an excellent program that provides comprehensive, coordinated care for eligible seniors. However, it does mean that financial planning has become more critical for married couples.
Take Action Now
If you’re curious about how these changes might affect you or want to explore strategies to best protect your assets before applying for MassHealth, now is the time to seek guidance. There are legitimate planning strategies that can help you preserve your financial security while ensuring access to the care you need.
The landscape of long-term care planning is changing, but with the right information and guidance, you can navigate these changes successfully.
Founded by a nurse attorney and with offices in Acton, Andover, and Sudbury, Massachusetts, Generations Law Group helps families navigate the complex areas of estate planning and elder law to inform and protect loved ones of every generation.
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