The rules of “Spending Down” assets for Medicaid may seem tricky, but we’re here to help you navigate.
To qualify for Medicaid, you must make less than an income at or below 133% of the Federal Income Poverty Guidelines. Applicants for Medicaid can spend down their assets on anything that will benefit the applicant. A Medicaid spend down is taking your money and spending it on assets if your income is too high to normally qualify for Medicaid. Essentially, there is no limit on what you can spend as the applicant. Here are some things you can spend down:
Prepay funeral expenses. Prepaid funeral contracts for Medicaid can allow you to buy and or payoff your funeral before you pass.
Pay off a mortgage, car loan, or credit card debts. Debts can be paid and loans can be paid in full.
Make repairs to a home. All repairs are allowed to spend assets on.
However, Medicaid has a strict asset transfer rules. If applicants transfers for less than market value then the Medicaid will be ineligible for the applicants. Another issue remains on what each state will or won’t cover with their Medicaid, so make sure you do proper research before making this commitment.
If you need help with creating a will, or have any other estate planning or medicaid questions and needs, please feel free to contact our office at (610) 562-2000 or use our online contact form.