(a) Revising home equity limit.—Section 1917(f)(1) of the Social Security Act (42 U.S.C. 1396p(f)(1)) is amended—
(1) in subparagraph (B)—
(A) by striking “A State” and inserting “(i) A State”;
(B) in clause (i), as inserted by subparagraph (A)—
(i) by striking “ ‘$500,000’” and inserting “the amount specified in subparagraph (A)”; and
(ii) by inserting “, in the case of an individual’s home that is located on a lot that is zoned for agricultural use,” after “apply subparagraph (A)”; and
(C) by adding at the end the following new clause:
“(ii) A State may elect, without regard to the requirements of section 1902(a)(1) (relating to statewideness) and section 1902(a)(10)(B) (relating to comparability), to apply subparagraph (A), in the case of an individual’s home that is not described in clause (i), by substituting for the amount specified in such subparagraph, an amount that exceeds such amount, but does not exceed $1,000,000.”; and
(2) in subparagraph (C)—
(A) by inserting “(other than the amount specified in subparagraph (B)(ii) (relating to certain non-agricultural homes))” after “specified in this paragraph”; and
(B) by adding at the end the following new sentence: “In the case that application of the preceding sentence would result in a dollar amount (other than the amount specified in subparagraph (B)(i) (relating to certain agricultural homes)) exceeding $1,000,000, such amount shall be deemed to be equal to $1,000,000.”.
(b) Clarification.—Section 1902 of the Social Security Act (42 U.S.C. 1396a) is amended—
(1) in subsection (r)(2), by adding at the end the following new subparagraph:
“(C) This paragraph shall not be construed as permitting a State to determine the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services without application of the limit under section 1917(f)(1).”; and
(2) in subsection (e)(14)(D)(iv)—
(A) by striking “Subparagraphs” and inserting
“(I) IN GENERAL.—Subparagraphs”; and
(B) by adding at the end the following new subclause:
“(II) APPLICATION OF HOME EQUITY INTEREST LIMIT.—Section 1917(f) shall apply for purposes of determining the eligibility of an individual for medical assistance with respect to nursing facility services or other long-term care services.”.
(c) Effective date.—The amendments made by subsection (a) shall apply beginning on January 1, 2028.