How a Medicaid Spend Down Works

Medicaid can certainly be confusing. It is a government program created in the 60’s to help Americans unable to work maintain long term health care. Currently, it is available to Americans over the age of 65, or those who are disabled, under certain guidelines provided by Medicaid. The qualification that predominantly causes the most amount of issues and confusion, however, is financial. As of January 2019, as a resident of New York State, one must have less than $15,450.00 in assets and make less than $859.00 monthly. Automatically, anyone who owns a home or has a pension or social security award income greater than this is disqualified, right?


The below linked article explains the concept of a “Medicaid 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” as defined by Both ethical and legal, this strategy can help scores of Americans who may previously have thought they are and would always be ineligible for these benefits.

Danna & Associates, PC has specialized in Elder Law & Estate Planning for over 25 years. With the knowledge and experience gained, we are able to help many different types of individuals attain their goal of receiving Medicaid benefits. Call 718.273.0300 for your free consultation today!

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