All of us are getting older and we want to make sure that the ones we love are taken care of and have a plan. There is a lot to think about, staying ahead of the curve, and having a plan for long-term care is vital to making a smooth transition into our elder years. Do you want to ensure that your parents have the care they need but are worried they don’t have the money to pay for it? Medicaid spend down could be a good option, but the process can be arduous and confusing.

Qualifications for Medicaid vary in each state, if income is too high it may be necessary to spend down to meet the income and asset requirements to be eligible. In order to qualify individuals will spend down some of their income and assets typically on medical bills or healthcare-related costs. However, a spend down could include debt, a mortgage, or vehicle payments as well.

How to Spend Down?

To spend down your monthly income, say your income is $900 and the income limit for Medicaid in your state is $700, you could use $200 per month to pay off routine medical care and expenses, prescriptions, or past-due medical bills.

If you exceed the asset limit for your state, you can spend down. Luckily that usually does not include a car, personal belongings, or a house, unless the home is expensive, and the value exceeds the requirement for your state. Assets that would need to be part of the spend down are savings accounts, a second home, and investments.

Since each person has their own unique financial situation and long-term care requirements it can be helpful to seek outside assistance or a specialist. Need help navigating this process? Request a free consultation with the Deliberato Law Center today.


Contact the Estate Planning Attorneys at Deliberato Law Center