Determine Medicaid Spend Down
Medicaid is a state-operated, federally- and state-funded health insurance program for certain low-income populations, including the elderly, the disabled, pregnant women and children. A Medicaid spend down is the amount that an individual must pay toward his medical bills each month prior to Medicaid covering medical costs. Spend down rules vary among state Medicaid programs.
Instructions
1. Determine whether or not you are required to pay a spend down. If you receive Supplemental Security Income (SSI), you do not have to pay a spend down. If you receive earned income over state-specific limits, you are also excluded from paying a spend down.
2. Contact your local or state Medicaid office to obtain spend down figures based on your specific Medicaid classification. Spend down figures vary depending on the state you reside in, whether or not you are elderly, and other factors, such as your specific type of Medicaid, sources of income and resources.
3. Add up your total monthly income. Subtract the spend down figure from Step 2 from your monthly income. This figure is your monthly spend down. You must pay this amount out-of-pocket for medical expenses prior to Medicaid covering any medical costs. For example, if you receive $1,000 per month in Social Security disability and the spend down figure is $690, you must pay the first $310 in medical costs each month prior to Medicaid covering your medical costs.
