Florida Medicaid Planning: 2028 Changes Under the One Big Beautiful Bill Act (OBBBA)

The One Big Beautiful Bill Act (OBBBA), effective January 1, 2028, introduces significant reforms to Medicaid eligibility for long-term care. This document summarizes the most impactful changes for Florida residents, outlining which exemptions are being eliminated, which remain valid, and what planning steps should be taken now.

Impact of OBBBA on Florida Medicaid Exemptions (Effective Jan 1, 2028)

The most significant change is a new cap on homestead (home) equity. As of 2028, a Florida Medicaid applicant will be disqualified from long-term care coverage if their equity interest in their primary home exceeds $1,000,000 unless a spouse or qualifying child lives there. Prior allowances tied to inflation will be frozen. In addition, the retroactive Medicaid coverage period is shortened, and states are required to conduct more frequent eligibility redeterminations.

Eliminated or Curtailed Exemptions

• Homestead equity over $1 million will no longer be exempt.
• One month of retroactive coverage is eliminated for seniors.
• Strategies to convert assets into home equity are capped.
• Eligibility reviews will become more frequent and stricter.

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