Preparing yourself financially for the rest of your life is a tricky task. You never know what may happen, and it is difficult to predict exactly how much money you will need. For many people, it becomes a reality that they run out of money just when they need it the most. If you need long-term care, this can drain your finances and leave you desperate for help. That is where Medicaid can come in.
However, Medicaid is a need-based program. You must meet income limits and not have an overabundance of assets, either. For many people, this means learning about Medicaid spend down, which U.S. News and World Report defines as depleting your assets so that you qualify for Medicaid coverage.
Create a good system
You want to create a tracking system so you can carefully monitor your spend down activities. You want to make sure that you are not going overboard, but also that you spend down enough to stay within the limits. A good tracking system can help you avoid errors that make you ineligible for benefits.
Spend wisely
While you may have to spend some of your income right away to qualify for Medicaid, you can do it in sensible ways. For example, the rules allow you to spend that money on medical bills that you already have, spending it on any medical needs. For example, a lift that will allow you to get upstairs in your home more easily and safely.
Understand asset rules
Assets are a bit more complex. You may have to give them away or sell them to get below the limits. However, many assets are also exempt, meaning that they do not count towards your limits. Unless they are extravagant, you can usually keep your home and car. You also get to keep your personal belongings.
Medicaid spend down is often difficult to manage on your own. It is a process that requires careful consideration and an understanding of the rules. However, mastering the system can enable you to get the benefits you need to afford your long-term care.
