Pre-Payment for Medicaid Spend down
Medicaid is a joint state and federally funded health insurance program intended for people with low income and a critical need for medical care. Those whose non-exempt assets are above the state-mandated amount cannot qualify for assistance until their assets are drained by health care costs. This can be devastating for a family that has saved diligently over the years, especially if a spouse or dependent child is involved.
Fortunately, there are certain ways to reduce non-exempt assets or to “spend down” assets in very specific ways so that they are excluded—and thus protected—from the total assets considered to qualify for Medicaid. We have a Certified Senior Advisor and Elder Law Attorney available to you and your family to assist with your Medicaid and Estate Planning. We know this can be confusing to many, but again, we are here to help!
Who Qualifies for Medicaid?
Generally, seniors aged 65 or older, low-income adults with or without children, pregnant women, and disabled individuals can qualify for Medicaid depending on their income and assets. The limit on how many assets and how much income a person is allowed are determined at the state level. If your assets are more than allowed, you will be required to either spend them down or move them into types of assets that are considered exempt before Medicaid coverage is approved. Depending on the transfer of assets, this may need to be done up to 5 years before your application is made to Medicaid, so planning ahead, if at all possible, is extremely helpful.