Medicaid provides essential healthcare coverage for low-income individuals, including those needing long-term care. However, many Maryland residents find that their income or assets exceed the eligibility limits.
If this applies to you, a Medicaid spend down strategy can help you qualify for benefits.
What is Medicaid’s spend down policy?
Medicaid spend down allows individuals to reduce their countable assets or income to meet the program’s eligibility requirements. In Maryland, the spend down process involves using excess income or assets to pay for medical expenses until you qualify for Medicaid. This method helps those who have too much income or too many assets to meet Medicaid’s strict limits but still need financial assistance.
What are the different types of Medicaid spend down?
Income spend down applies if your income exceeds Medicaid’s monthly limit. You can allocate excess income to medical bills, including doctor visits, prescription medications and health insurance premiums. Once your medical expenses exceed your excess income, you can qualify for Medicaid for the remainder of the month. You must repeat this process each month to maintain Medicaid eligibility.
Asset spend down focuses on reducing countable resources you own. These include bank accounts, investments and other property. In Maryland, you can keep certain assets such as a primary residence and vehicle without affecting eligibility. You can spend down excess assets by paying off debt, prepaying funeral expenses or making home improvements. Another option is to create a Medicaid Asset Protection Trust, which allows you to protect assets while maintaining Medicaid eligibility.
Medicaid spend down offers a vital pathway for Maryland residents who need medical coverage but do not meet the income or asset requirements. By understanding and using the spend down process, you can secure the healthcare coverage you need while protecting your financial future.
