Tennessee's Medicaid program, TennCare, covers nursing-home care through its CHOICES long-term-services program. TennCare is an income-cap state: for 2026 the Medicaid income cap is $2,982 a month and the resource limit is $2,000 for one person, per TennCare. A parent whose income exceeds the cap can still qualify by using a qualified income trust. Long-term-care coverage is delivered through the CHOICES program.
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Tennessee TennCare Nursing Home Eligibility: A Caregiver's Guide (2026)
By Chuck Brodsky, Co-Founder, MediNav — Updated July 2026 — 7 min read
Quick answer
If your parent needs nursing-home care in Tennessee, TennCare's eligibility rules turn on two numbers — an income cap and a resource limit — plus the CHOICES program that actually delivers the care. Knowing how the income cap works keeps a parent from being wrongly turned away for being a little over the line.
The 2026 income cap and resource limit
TennCare uses a hard income cap for institutional Medicaid, set at 300% of the SSI federal benefit rate. For 2026 that Medicaid income cap is $2,982 a month, effective January 1, 2026, and the resource limit is $2,000 for one person. A parent whose countable income is at or below $2,982 and whose resources are at or below $2,000 meets those tests; a parent over the income cap is not automatically disqualified, as explained below.
Getting past the income cap: a qualified income trust
Because Tennessee is an income-cap state, a parent whose income is above $2,982 cannot simply spend down the excess — they need a qualified income trust, sometimes called a Miller trust. Income routed through the trust does not count toward the cap, so the parent can qualify. The trust must be set up and funded correctly each month, which is why families typically use an elder-law attorney. See the national Miller trust guide for how these work.
How care is delivered: CHOICES
TennCare provides long-term services and supports through CHOICES, which serves adults age 65 and older and adults with physical disabilities who need nursing-facility-level care, whether in a facility or at home. Eligibility for CHOICES combines the financial tests above with a functional assessment of care needs. A parent applies through TennCare and is assessed for the level of care CHOICES requires.
Transfer penalties in Tennessee
If a parent gave away assets before applying, TennCare calculates a transfer penalty by dividing the uncompensated amount by the state's average nursing-facility cost. For 2026, that transfer-of-assets divisor is $295.87 a day, which is $8,846.10 a month, effective January 1, 2026. Note that a separate CHOICES cost-neutrality figure is sometimes confused with this divisor; use the transfer figure for penalty calculations.
What a caregiver should do
Check your parent's income against the $2,982 cap and resources against the $2,000 limit. If income is over the cap, arrange a qualified income trust before applying rather than assuming your parent is ineligible. Apply through TennCare and expect a CHOICES functional assessment. For advocacy in a facility, the Tennessee Long-Term Care Ombudsman is at 1-877-236-0013.
When to call MediNav
- Free: Ask a specific question — tell us your Tennessee parent's income and get a straight answer on TennCare nursing-home eligibility.
- Free: Run the coverage check — in about two minutes, see what a parent is likely eligible for with 2026 figures for your state.
- Paid ($9–$19/mo): MediNav Watch and Watch+ re-check the figures as they change each year and remind you before deadlines, so nothing lapses unnoticed.
Related guides
- Miller Trust (QIT) — qualifying over the income cap
- Medicaid Look-Back Period — how transfers are reviewed
- Community Spouse Resource Allowance — protections for a spouse
- Is My Parent Dual-Eligible? — Medicare + Medicaid together
Frequently asked questions
What if my parent's income is over the Tennessee cap?
Tennessee is an income-cap state, so a parent over the $2,982 monthly cap cannot simply spend down the excess — they need a qualified income trust. Income routed through the trust does not count toward the cap, allowing the parent to qualify. Set the trust up with an elder-law attorney and fund it each month.
What are the 2026 TennCare limits?
For institutional Medicaid, the income cap is $2,982 a month (300% of the SSI federal benefit rate, effective January 1, 2026) and the resource limit is $2,000 for one person. A parent must meet both, though the income cap can be handled with a qualified income trust when income is higher.
What is CHOICES?
CHOICES is TennCare's long-term-services program for adults 65 and older and adults with physical disabilities who need nursing-facility-level care, delivered in a facility or at home. A parent qualifies through the financial tests plus a functional assessment of their care needs. Apply through TennCare.
How does Tennessee calculate a transfer penalty?
TennCare divides the uncompensated value of gifts by the state's average nursing-facility cost. For 2026 that transfer-of-assets divisor is $295.87 a day, or $8,846.10 a month, effective January 1, 2026. A gift of assets before applying can therefore create a period of ineligibility.
Is the transfer divisor the same as the CHOICES cost cap?
No. A separate CHOICES cost-neutrality figure exists and is close in value, which causes confusion, but it is a different figure for a different purpose. For calculating a transfer-of-assets penalty, use the transfer divisor of $295.87 a day, not the CHOICES cost cap.
Where can I get help with a Tennessee nursing home?
The Tennessee Office of the State Long-Term Care Ombudsman, under the Commission on Aging and Disability, advocates for residents. Its statewide number is 1-877-236-0013. For eligibility and application help, contact TennCare or your local Area Agency on Aging and Disability.
Sources: TennCare — Institutional Medicaid standards, TennCare CHOICES, TennCare — Transfer of Assets and Penalty Periods, Tennessee Long-Term Care Ombudsman. Last verified July 2026.