The best time to plan for Medicaid is well before long-term care benefits are necessary. Unfortunately, not everyone enjoys advance notice of major medical changes.
Sudden injuries, major events such as strokes and even progressive medical conditions can leave people in need of Medicaid benefits without five years of advance notice for planning. In such cases, people may need to engage in a “spend-down” to address the assets that make them ineligible for Medicaid benefits. The financial moves below can help people spend down their income and qualify for Medicaid.
1. Paying medical bills
Spending income to qualify for Medicaid requires that people use their funds for approved purposes, including reducing existing medical debts. People who already have past-due medical bills can reduce their debt every month by paying toward those balances with their excess income.
2. Modifying the home
People with debilitating medical conditions may need to make adjustments to their living space. They may want to change their doorknobs and faucets or renovate the home so they can live on the first floor, for example. Necessary modifications, such as walk-in tubs, can cost thousands of dollars to install and are often part of a spend-down strategy.
3. Prepaying funeral costs
Older adults can pay in advance for funerals, burial plots and cremation and memorial services. Doing so allows them to take pressure off their loved ones after their passing and potentially help them qualify for Medicaid when they are vulnerable.
Working with an attorney to plan for Medicaid can help people create effective spend-down strategies. The right financial choices can help people qualify for benefits when they need them.