The Medicaid Spend Down
What is the Medicaid Spend Down?
The "Medicaid spend down" refers to reducing one's countable assets in order to qualify for Medicaid benefits and obtain financial assistance in paying for long-term care, like the care received in a nursing home.
Many families are told the only way to reduce assets and qualify for Medicaid is to continue spending their money on the long-term care bill until the assets have been depleted. However, there are many other options to spend down assets in a way that is more advantageous to the Medicaid applicant, including protecting those assets for a healthy spouse or the next generation.
How to Spend Down for Medicaid
Buy Exempt Assets: The primary home, a vehicle, and personal property are all excluded from Medicaid's consideration when determining how much one has in countable assets. You can purchase or improve exempt assets to spend down excess funds without triggering penalty period. This could include making improvements to the primary home, upgrading the primary vehicle, or purchasing other personal items to make the Medicaid recipient or healthy spouse more comfortable.
Pay Off Debts: If the Medicaid recipient has any outstanding debts or liabilities, this is a good time to pay those bills. It's an allowable expenditure for Medicaid purposes, and it ensure the liability does not become the responsibility of the spouse or the next generation when the person in care passes away.
Secure a Pre-Paid Funeral: When properly structured, a funeral plan is exempt from Medicaid. Additionally, most states allow the Medicaid applicant to purchase funeral plans for family members like the spouse and their children. These plans set aside money that can specifically be used for funeral service and burial expenses and save the family from scrambling for funds at the time of need.
LEARN ABOUT FUNERAL PLANS >Purchase a Medicaid Annuity: A Medicaid Annuity is a special tool Medicaid planners use to help people qualify for Medicaid while also preserving assets for the spouse or the next generation. This annuity is an insurance product that converts otherwise countable assets into an income stream, and can help applicants preserve up to 100% of their spend-down amount.
LEARN ABOUT MEDICAID ANNUITIES >
