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. The term “spend down” is commonly used when discussing Medicaid eligibility. It refers to the process of reducing assets to meet the eligibility guidelines for Medicaid in a given state. When an individual’s assets exceed the Medicaid limits, they must spend down their assets to qualify for the program.
However, not all methods of reducing assets are acceptable. Simply giving away assets will not suffice and could result in penalties. There are, however, legitimate ways to spend down assets to become eligible for Medicaid benefits.
Examples of acceptable expenditures include using resources to pay for goods or services that are necessary, such as remodeling a home, purchasing a new car, or setting up a burial plan. These types of expenditures will not impact eligibility for Medicaid benefits.
