Life Insurance Form For Medicaid Spend Down

What s spend down even if your income is higher than medicaid income levels in your state you may be eligible under medicaid spend down rules.

Life insurance form for medicaid spend down. If you transfer the policy to your spouse the cash value would then be part of the spouse s community resource allowance. Once an individual has paid his her excess income down to the medicaid eligibility limit met the spend down for the period he she will qualify for medicaid services for the remainder of the period. Remember life insurance policies with a combined face value of 1 500 or less are exempt from medicaid s asset limit. Understand how medicaid spend down works the calculations.

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. If you have a life insurance policy that may disqualify you from medicaid you have a few options. Surrender the policy and spend down the cash value. Medicaid affects certain types of life insurance.

Under spend down you can subtract your uncovered medical expenses from your income until you meet your state s medicaid income level. In the state of washington the spend down period is either a three or six month period based on the decision of the medicaid applicant. This is called medically needy. The type of life insurance matters for medicaid purposes.

Transfer ownership of the policy to your spouse or to a special needs trust. Co payments and deductibles for medical insurance including medicaid and medicare including the medicare prescription drug program part d surgical and medical supplies medical equipment prosthetic devices hearing aids eyeglasses and over the counter drugs if your doctor has ordered them. Therefore if one has a policy with a cash value over 1 500 it s best to cancel the policy or decrease the cash value.