Elder Law Attorney in Niles, Illinois
What does “spend down” mean in relation to Medicaid planning?
What does “spend down” mean in relation to Medicaid planning?
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The term “spend down” is often used when discussing Medicaid eligibility. It refers to the process of reducing assets to meet the eligibility guidelines for Medicaid in your state. If an individual’s assets exceed the Medicaid limits, they must spend down their assets to qualify for the program.
However, it’s important to note that not all methods of reducing assets are acceptable. Simply giving away assets will not work and could result in penalties. There are, however, legitimate ways to spend down assets to become eligible for Medicaid benefits.
Some examples include using your resources to pay for goods or services that are beneficial, such as remodeling your home, purchasing a new car, or setting up a burial plan. These types of expenditures will not affect your eligibility for Medicaid benefits.
Niles, IL estates & probate attorney Dana Zivkovich discusses what “spend down” means in relation to Medicaid planning. She states that the term “spend down” is commonly used in discussions about Medicaid eligibility. It refers to the process of reducing assets in order to meet the financial eligibility requirements established by the state. If an individual’s assets exceed the Medicaid limits, they must spend down their resources before qualifying for coverage.
She notes, however, that not all methods of reducing assets are permitted. Simply transferring or giving away assets can trigger penalties and jeopardize eligibility. Instead, there are legitimate and acceptable ways to spend down assets to qualify.
Examples of appropriate expenditures include using available resources for beneficial purposes such as remodeling a home, purchasing a reliable vehicle, or setting up a prepaid burial plan. These types of purchases are considered legitimate and do not interfere with an individual’s eligibility for Medicaid benefits.
