There are countless articles on the web that talk about how assets affect Medicaid eligibility. However, I see very little discussion about income, especially when one spouse is institutionalized and one stays at home ("community" spouse). How do the "community spouse impoverishment" rules work in determining how much of the couple's total income can be retained by the community spouse? Also, I heard from an attorney that some of the assets in excess of 50% of the couple's total assets can be used to purchase an annuity that will help make up the difference between the community spouse's income and the state-mandated "community spouse living allowance". How does that work? My father-in-law will likely be going to assisted living soon, and we need to do whatever we can to make sure his wife has sufficient resources to remain at home.