| Meaning of spend down….read on:
READER QUESTION:
In the recent Listen to Lawrence Letter, March 6, 2025, Vol 6, Issue 327, what does it mean when it said, Medicare made him spend down all of his funds? Thank you.
MY RESPONSE:
THE question really is about the MEDICAID spend-down. To be eligible for Medicaid you must be poor in assets and income. The spend down concept is that you have to get your assets and income income down to the program’s low limits. To spend down you either must spend the money on allowed expenses or gift away the assets within the rules (with look-backs and exemptions).
One example is that you can gift your assets to a spouse or disabled child without any penalty. Another example is that you can prepay your funeral expenses to lower your assets.
If you need a strategy to spend down your assets and position yourself for Medicaid, call us for a consultation ASAP.
I hope this helps! |
