Oregon Medicaid income limits work differently than in most states: there is a hard ceiling, and going one dollar over it does not mean you spend down the difference. For long-term care, Oregon caps gross income at $2,982/month, and an applicant over that line must route the excess through an Income Cap Trust to qualify. Oregon is one of a minority of states that runs this kind of strict income cap, and the trust is the workaround that keeps over-income seniors eligible.
This guide walks through the 2026 income and asset rules for the Oregon Health Plan (OHP) for seniors and people with disabilities who need long-term care. It covers the $2,000 asset limit, the income cap and how the Income Cap Trust works, what a nursing-home resident keeps, what a spouse at home is protected from, the five-year look-back, estate recovery, and how to apply through Oregon's ONE system.
The asset limit is still $2,000
Unlike states that have raised their resource ceiling, Oregon holds to the long-standing federal figure. A single applicant for nursing-facility or waiver coverage is limited to $2,000 in countable assets; when both spouses apply, the limit is $4,000.
"Countable" is the word that matters. Oregon, like every state, exempts a long list of assets from the count: your home (subject to an equity cap), one vehicle, household goods and personal effects, and prepaid burial arrangements. So the $2,000 applies to things like bank accounts, a second car, and investments, not the roof over your head. For a married couple, the spousal-impoverishment rules below protect far more than $2,000 for the spouse who stays in the community.
How the income test works: the cap and the trust
For nursing-facility and home-and-community-based services (HCBS) waiver coverage, Oregon sets the income limit at $2,982/month, equal to 300% of the 2026 SSI Federal Benefit Rate of $994.
Here is where Oregon parts ways with spend-down states. Oregon is a strict income-cap state: gross monthly income above $2,982 does not let you spend the excess down on medical bills to qualify. Instead, an over-income applicant must establish an Income Cap Trust (Oregon's name for a Qualified Income Trust, also called a Miller Trust) and deposit the income above the limit into it each month. The trust holds the excess, which is then used under strict rules for the cost of care, and the applicant is treated as within the income limit. Without the trust, an applicant even slightly over $2,982 is shut out of long-term-care coverage.
An Income Cap Trust is a legal document with specific drafting and administration requirements, and the state must be named to receive any funds remaining at the recipient's death. Most families set one up with help from an elder-law attorney. If income is over the line, the trust is not optional, it is the only path to eligibility in Oregon.
Long-term care: what a nursing-home resident keeps
When the Oregon Health Plan pays for nursing-facility care, the resident contributes almost all of their monthly income toward the cost of care. What they keep is the Personal Needs Allowance (PNA), money reserved for the resident's own small expenses such as clothing, a haircut, or a phone. In Oregon, the nursing-facility PNA is $81.28/month.
The same $2,000 asset limit applies to nursing-home applicants. Because Oregon uses an income cap rather than spend-down, a resident whose income runs over $2,982 still needs an Income Cap Trust even after entering the facility. (For the national picture on the PNA and how it works, see our explainer on the Medicaid personal needs allowance.)
The five-year look-back
Oregon reviews asset transfers made in the 60 months before a long-term-care application. Giving away money or property for less than fair market value during that window, gifting a grandchild a down payment or signing a house over to a child for a dollar, can trigger a penalty period during which the program won't pay for long-term-care services, even though you're otherwise eligible.
There are legitimate exceptions (transfers between spouses, transfers to a disabled child, certain caregiver-child home transfers) and legitimate planning approaches, but anything done inside the five-year window deserves an elder-law attorney's review first. If long-term care is on the horizon for someone in your family, talk to a professional before moving assets. For the broader toolkit, see our guide to Medicaid planning strategies.
Protecting the spouse who stays home
When one spouse needs long-term care and the other remains in the community, federal spousal-impoverishment rules keep the at-home spouse from being left destitute. Oregon applies the federal maximums for 2026:
| Protection | 2026 Amount | What it does |
|---|---|---|
| Community Spouse Resource Allowance (CSRA) | Half the couple's countable assets, up to $162,660; minimum $32,532 | The most in countable assets the at-home spouse may keep, on top of the applicant's own $2,000 limit. |
| Minimum Monthly Maintenance Needs Allowance (MMMNA) | $2,643.75 to $4,066.50/month | The income floor the at-home spouse may keep; income can be shifted from the applicant to reach it. |
| Home-equity limit | $752,000 | Equity in the primary residence above this amount is countable for long-term-care eligibility. |
So a married couple is in a very different position from a single applicant. The community spouse can hold up to $162,660 in countable assets and keep thousands of dollars a month in income while the other spouse receives long-term-care services through OHP.
After death: estate recovery
Like every state, Oregon runs a Medicaid estate-recovery program. After a recipient who was 55 or older and received long-term-care services dies, the state may seek repayment from the estate, with the federally mandated exceptions and an undue-hardship waiver. Recovery is generally deferred while a surviving spouse is living or a minor, blind, or disabled child survives. For how estate recovery works and where families have room to plan, see our Medicaid estate recovery explainer.
How to apply in Oregon
The Oregon Health Plan is administered by the Oregon Health Authority, and long-term-care eligibility is handled by the Oregon Department of Human Services (ODHS) Aging and People with Disabilities program. You have three ways to apply:
- Online through the ONE system at ONE.Oregon.gov, the state's integrated benefits portal for Medicaid and related programs.
- By phone at 1-800-699-9075.
- In person at a local ODHS office.
Long-term-care applicants also go through a level-of-care screening to confirm they need nursing-facility-level services. If your income is over $2,982/month, start the Income Cap Trust conversation with an elder-law attorney early, because the trust must be in place and funded for the months you want covered. Apply even if you think you're over the income line, the trust exists precisely so that over-income seniors can still qualify.
Frequently Asked Questions
For nursing-facility and HCBS-waiver long-term care, the 2026 income limit is $2,982/month, equal to 300% of the SSI Federal Benefit Rate ($994). Income above that does not automatically disqualify you, but because Oregon is an income-cap state you must route the excess through an Income Cap Trust to qualify.
It's Oregon's name for a Qualified Income Trust, also called a Miller Trust. An applicant whose gross income exceeds $2,982/month deposits the excess into the trust each month; the trust holds that income for the cost of care under strict rules, and the applicant is then treated as within the income limit. The state must be named to receive funds remaining at death.
$2,000 in countable assets for a single long-term-care applicant, or $4,000 when both spouses apply. The home (within an equity cap), one vehicle, household goods, and prepaid burial are exempt from the count.
For 2026, the at-home (community) spouse can keep up to $162,660 in countable assets (the Community Spouse Resource Allowance, minimum $32,532) and a monthly income allowance in the $2,643.75 to $4,066.50 range. The home is generally protected up to $752,000 of equity.
A Personal Needs Allowance of $81.28/month. The rest of the resident's monthly income goes toward the cost of care, after deductions such as a community-spouse allowance and certain health-insurance premiums.
Apply online through the ONE system at ONE.Oregon.gov, by phone at 1-800-699-9075, or in person at a local ODHS office. Long-term-care applicants also complete a level-of-care screening. If your income is over $2,982/month, set up an Income Cap Trust before you need coverage to begin.
Learn More
- Medicaid Planning Strategies
- How Medicaid Estate Recovery Works
- The Medicaid Personal Needs Allowance, Explained
Find personalized help working through Oregon Medicaid eligibility and the Income Cap Trust for your family at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.