How does Medicaid spend down work in Michigan?
How does Medicaid spend down work in Michigan?
What is Medicaid spend-down? Medicaid spend-down is the amount of income that needs to be spent on medical expenses to reach a PIL in order to still have Medicaid benefits. For example: If your income is $1,000, you will need to spend $659 on medical expenses to keep your Medicaid benefits.
How can I spend down money before Medicaid?
Following are examples of what a Medicaid applicant may be able to spend money on: Prepay funeral expenses. A prepaid or pre-need funeral contract allows you to purchase funeral goods and services before you die. Pay off a mortgage, car loan, or credit card debts.
What does Medicaid spend down mean?
Some people have too much income to qualify for Medicaid. Some of these people may qualify for Medicaid if they spend the excess income on medical bills. This is called a spend down. For example, a person over 65 is denied Medicaid because her monthly income is $50 more than the limit for Medicaid eligibility.
How do I protect my assets from Medicaid?
Establish Irrevocable Trusts An irrevocable trust allows you to avoid giving away or spending your assets in order to qualify for Medicaid. Assets placed in an irrevocable trust are no longer legally yours, and you must name an independent trustee.
What does it mean to spend down on Medicaid?
What is Medicaid spend-down? Medicaid spend-down is the amount of income that needs to be spent on medical expenses to reach a PIL in order to still have Medicaid benefits. For example: If your income is $1,000, you will need to spend $659 on medical expenses to keep your Medicaid benefits.
When do you become eligible for Medicaid in Michigan?
In Michigan, this program is known as Medicaid Spend-down. In simple terms, once a Medicaid applicant has spent his or her excess income (the amount of income over the established income limit) on medical bills and care services, he or she will become eligible for Medicaid services for the remainder of the month.
What does Medicaid stand for in the state of Michigan?
Michigan Medicaid Definition In the state of Michigan, Medicaid is often called Medical Assistance (MA), but the program provides for more benefits than simply medical assistance. Medicaid is a wide-ranging, jointly funded state and federal health care program for low-income families and individuals of all ages.
How long do you have to spend on Medicaid before you are eligible?
Once Medicaid applicants have spent their excess income (the amount over the income limit) on medical expenses, they will be Medicaid eligible for the remainder of the “spend down” period, which is between 1 and 6 months. Not all states have a medically needy pathway.