Medicaid Community Property and Respite Care Act of 1987

Medicaid Community Property and Respite Care Act of 1987 - Title I: Community Property and Prevention of Spousal Impoverishment - Amends title XIX (Medicaid) of the Social Security Act to treat the income and resources of an institutionalized individual and his or her community spouse as community property in determining their Medicaid eligibility.

Requires that, after an institutionalized individual is determined to be eligible for Medicaid, a monthly income allowance (allowance) be deducted from the institutionalized individuals monthly income and paid to his or her community spouse to the extent such spouse's monthly income falls short of a minimum monthly maintenance needs allowance determined pursuant to a specified formula. Gives the institutionalized spouse the right to a hearing to establish that the allowance is not adequate to support the community spouse without financial duress so that an adequate amount of support will be substituted for the allowance.

Permits an institutionalized spouse to transfer resources to the community spouse to the extent the median net worth of male householders 65 years of age or older exceeds the amount of resources otherwise available to the community spouse.

Title II: Offering of Respite Care under Medicaid - Provides Medicaid coverage of respite care for up to 30 days in any calendar year. Prohibits coverage of more than 15 consecutive days of inpatient respite care or three consecutive days of in-home respite care.