What is a Medicaid spend-down plan?

A Medicaid spend-down plan is a way for someone in South Carolina to qualify financially for Medicaid assistance. Medicaid is a federally funded program that assists with medical needs for those who can’t otherwise afford them. However, in order to receive assistance, the individual must meet certain financial requirements, such as having a low enough income and assets. A Medicaid spend-down plan allows someone who does not meet the financial requirements to still qualify for assistance. For example, if someone has an income that is too high but has significant medical expenses, they can use those medical expenses to “spend down” their income in order to meet the financial eligibility requirements. In other words, medical expenses are used to reduce the amount of income, which would ultimately allow the person to become eligible for Medicaid. In South Carolina, a person can use a Medicaid spend-down plan if they are elderly, disabled, or a family with dependent children. All necessary documents, such as proof of income, are needed to apply for a Medicaid spend-down plan. Once approved, Medicaid will pay for any approved medical costs that exceed the amount of the person’s adjusted income. It is important to note that while a Medicaid spend-down plan can be beneficial, it is a limited-time option and the person must still make sure they meet the eligibility requirements for Medicaid assistance in the future.

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What is a Medicaid spend-down plan?

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