Your spend-down amount will be the difference between your income and the Medicaid eligibility limit, as determined by your state over a given length of time (one to six months). Some states require you to submit receipts or bills to Medicaid to show your monthly expenses.

What is SSI spend down?

The term “spend down” describes the process of literally spending the excess money received by a benefits recipient down to the maximum allowable resource limits. By spending the excess funds in the month in which they are received, the individual can remain eligible for benefits.

What’s the legal way to spend down assets?

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What’s the difference between asset spend down and income spend down?

Asset spend down is applicable across the 50 states, while income spend down is only relevant in some of the states. The limits often vary based on the specific Medicaid program and on one’s marital status. However, one fact remains the same: all Medicaid programs for the elderly require either restricted income or assets or both.

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.

What can I spend money on when spending down?

One step many people take as part of their Medicaid spend down is to prepay for their funeral. For more information on spending down for Medicaid, click here. Helen has been licensed to practice law since 2004.