Following are examples of what a Medicaid applicant may be able to spend money on:

1. Prepay funeral expenses.
2. Pay off a mortgage, car loan, or credit card debts.
3. Make repairs to a home.
4. Replace an old automobile.
5. Update your personal effects.
6. Medical care and equipment.
7. Pay for more care at home.
8. Buy a new home.

What is a spend down requirement?

A Medicaid spend down is a financial strategy used when an individual’s income is too high to qualify for Medicaid. To be accepted into the program, some of the individual’s income must be spent down to ensure his or her income is low enough to qualify for Medicaid.

How can I avoid spending down assets for Medicaid?

Generally, Medicaid rules exempt your family home for eligibility purposes. One way to avoid spending your own financial resources on your long term care is to invest in your home. Spending your money on renovations or repairs to your home may help you fall within the Medicaid eligibility guidelines.

How does a spend down work?

How does a spend down work? It works almost like a deductible for car insurance. When you have accumulated medical bills (paid or unpaid) greater than your excess income, you will get Medicaid for that month.

What are countable assets?

Countable assets include cash, bank accounts (checking, money market, savings), vacation houses and property other than one’s primary residence, mutual funds, stocks, bonds, and certificates of deposit. In approximately 39 states, 401K’s and IRA’s are considered countable assets.

What is a spend down report?

What is a Spend Down? ​ For an individual receiving Supplemental Security Income (SSI) and/or Medicaid, a “Spend Down” literally refers to spending excess money that he/she receives within a calendar month to maintain eligibility for public benefits.

Is there a way to spend down your assets?

This is a great way to spend down assets if you’re married. But in order for an annuity to work as a way to spend down resources, it must meet certain requirements; for example, the annuity must be nontransferable and your state’s Medicaid agency must be listed as the primary beneficiary after the death of your spouse.

When do I need to spend down my assets for Medicaid?

If the applicant’s income or countable assets exceed Medicaid’s financial limits in their state, it is possible to become eligible by “spending down” one’s income or assets to the point where they become financially eligible. However, there are Medicaid spend down rules about how one can legally spend down their financial resources.

Can a spend down program refer to both income and assets?

While the “spend down program” can refer to both income and assets, it is much more common when discussing assets. Therefore, the majority of this article will focus on that subject. Income and asset limits for Medicaid do not remain consistent across the United States, nor do they remain the same even within each state.

How does spending down work in New York?

In New York, Medicaid spend down is also known as the “surplus income” or “excess income” program. The way it works is this. If you accumulate medical bills that exceed your excess income above the eligibility for Medicaid, then you can spend your excess income on your medical bills to qualify for Medicaid for the rest of your medical expenses.