When a person is married, only the applicant’s income is counted toward their eligibility. Their spouse’s income is not considered. Medically needy states designate their own spend-down periods, during which they determine a person’s income and medical expenses. California’s spend-down period is one month.
What is a Medi-Cal spend down?
Also called a Spend Down program, one’s “excess income,” the amount that is determined as one’s cost of share, is used to cover medical bills. Once one has paid his or her share of cost, Medi-Cal will kick in for the month.
What is a spend down period?
Your spend-down amount will be the difference between your income and the Medicaid eligibility limit, as determined by your state over a given length of time (one to six months). Some states require you to submit receipts or bills to Medicaid to show your monthly expenses.
How do you avoid the 5 year lookback rule?
The best way to avoid violating this period and receiving a penalty of Medicaid ineligibility is to consult a Medicaid planner before gifting or transferring any assets. A Medicaid planner can also offer assistance if you have violated the look-back period.
What is the spend down?
A Medicaid spend down is a financial strategy used when an individual’s income is too high to qualify for Medicaid. To be accepted into the program, some of the individual’s income must be spent down to ensure his or her income is low enough to qualify for Medicaid.
What can I spend down on for Medicaid?
A Medicaid applicant may pay any legitimate debt that the applicant or the applicant’s spouse is legally obligated to pay. Examples include credit cards, mortgage payments, medical bills, taxes, car payments, rent, utilities, and the costs of home or car maintenance.
What does spend down mean for Medicaid in California?
Medicaid is referred to by different names in different states. So spend down in California is called “Medi-Cal Spend Down”. In Illinois and other states “Medical Assistance Spend Down”. “Medicare Spend Down” is simply a misnomer. Medicare has no asset limit and therefore Medicare spend down does not exist.
Where to find California Medi Cal spend down?
If you have questions regarding Medi-Cal spend down, or any other Medi-Cal planning issues, please contact the Schomer Law Group either online or by calling us at (310) 337-7696. California Medi-Cal Spend Down 8 About the Author
Can a spend down program refer to both income and assets?
While the “spend down program” can refer to both income and assets, it is much more common when discussing assets. Therefore, the majority of this article will focus on that subject. Income and asset limits for Medicaid do not remain consistent across the United States, nor do they remain the same even within each state.
When do I need to spend down my assets for Medicaid?
If the applicant’s income or countable assets exceed Medicaid’s financial limits in their state, it is possible to become eligible by “spending down” one’s income or assets to the point where they become financially eligible. However, there are Medicaid spend down rules about how one can legally spend down their financial resources.
