What is a Medicaid spend-down plan?

A Medicaid spend-down plan is a type of program commonly used in South Dakota Elder Law that allows elderly individuals to qualify for Medicaid benefits when their income is too high to receive medical assistance. In a spend-down plan, the elderly person must spend down their income to fall within the Medicaid eligibility threshold. This typically involves paying out-of-pocket towards medical expenses such as doctor visits, prescription drugs, and long-term care costs. The amount that must be spent to reach the eligibility threshold is dependent on the individual’s income and will vary from person to person. Once the spend-down amount has been reached, the individual can then receive Medicaid benefits to cover the cost of their medical expenses. Spend-down plans are often used when an elderly person does not qualify for Medicaid through traditional means, but still needs medical care due to a long-term medical condition. These plans provide an opportunity for an individual to receive the medical care they require while remaining in a financially manageable situation. It is important to note that Medicaid spend-down plans are not available in all states, including South Dakota, so it is important to check with your state Medicaid office to determine if this type of plan is available for you.

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What is a Medicaid spend-down plan?

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