When applying for the Medicaid program, familiarizing yourself with its eligibility rules is necessary. The one element you must not overlook is the allowable asset and income limit. Exceeding the allowable limits can complicate your application, which may lead to denial and potential penalties.
You can reduce income and assets through the Medicaid Spend Down Program. Learning more about this can help maintain your eligibility while securing your finances.
Understanding asset spend down
Bank accounts, vacation homes, investment properties, stocks and bonds are examples of the types of assets that Medicaid officers consider when checking your eligibility. The total values of these items must not surpass the set asset limit of $32,396 for 2025.
If your assets exceeded this value, you may spend down your assets to meet the limit by doing the following:
- Purchasing medical equipment and care
- Modifying your home (repairs or renovations)
- Traveling locally or abroad
- Setting up an irrevocable funeral trust
Accomplishing these spend-down activities before your application is a must. Additionally, ensure to reduce assets correctly, as Medicaid officers will verify your transactions during the Look Back Period.
Defining income spend down
In New York, you may apply for the Medicaid Excess Income Program (MEIP) to meet the income eligibility limit of $1,800 per month. This allows you to use excess income to pay for medical costs, such as physician services, prescriptions and dental appointments. To successfully apply, you must meet the following criteria:
- Have an income exceeding the monthly income limit in New York
- Dedicate a calculated spenddown amount to medical expenses
- Be able to provide a collection of medical bills as proof
After receiving approval on the MEIP, you must spend your excess income to meet the limit every month.
Planning a spend down strategy
Since Medicaid has a strict application process, it is best to prepare a proper plan that could help you secure health care coverage. An attorney with experience in and Medicaid planning can provide you with thorough guidance on the matter.
