How will you pay for long-term or final health care? Financing care is an important End-of-Life management consideration.
Most people rely on multiple funding sources including private resources and US government health programs like Medicaid.
What is Medicaid?
Medicaid is a US government-funded health insurance program for people whose financial resources are insufficient to pay for their healthcare.
Federal and state governments jointly fund Medicaid. Each state implements and manages its own Medicaid program and determines who is eligible to receive benefits.
Who is eligible?
Generally, Medicaid recipients must be low-income, US citizens or legal permanent residents, or people with certain disabilities who cannot pay for healthcare without government assistance.
What is Medicaid Spend Down?
Some people have too much income to qualify for Medicaid. This amount is called excess income. They may qualify if they spend their excess income on healthcare. This is called spend down.
Spend down means reducing a person’s assets until Medicaid limits are reached. People sometimes qualify for Medicaid even though their income is higher than the specified limit.
Under Medicaid Spend Down, a person’s medical expenses are subtracted from their income during a specific time period. Once their income reaches a pre-determined level, they qualify for benefits for the remainder of the time period.