What is a Medicaid spend-down plan?

A Medicaid spend-down plan is a type of financial strategy designed to help seniors in California obtain Medicaid benefits. It allows a senior to reduce the amount of assets they have and still qualify for Medicaid. This plan works by having the senior use their resources to “spend down” the dollar amount of their assets in order to meet the income and asset eligibility requirements of Medicaid. The first step in establishing a spend-down plan is to calculate the individual’s income and assets. This includes all sources of income, such as Social Security and pension payments, as well as any assets, such as a savings account, stocks, bonds, and real estate. The total of these amounts is referred to as the “countable resources.” The individual must then use these resources to cover their living expenses and health care costs. Depending on the state they live in, they must spend down their resources to the limit set by Medicaid in order to qualify. In California, the limit is $2,000 for a single person and $3,000 for a married couple. When this limit is reached, the senior will be eligible for Medicaid. It is important for seniors to be aware of their income and assets and ensure that they are spending down the resources appropriately so that they can qualify for Medicaid. By understanding the Medicaid spend-down plan, seniors in California can obtain the proper health care coverage they need.

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What is a Medicaid spend-down plan?

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