What is Asset Spend-Down?

Asset spend-down is the process of reducing countable assets to qualify for Medicaid long-term care benefits. Since Medicaid has strict asset limits, individuals must "spend down" their resources on allowable expenses like medical bills, home modifications, or prepaid funeral arrangements before becoming eligible. This process must follow specific rules to avoid penalties for improper asset transfers.

Why asset spend-down matters

• Enables Medicaid eligibility: Allows individuals to qualify for long-term care coverage
• Requires careful planning: Must follow complex rules to avoid disqualification
• Protects spouses: Special provisions help prevent impoverishment of community spouses

How Solace can help

A Solace advocate can help you understand Medicaid asset limits, identify allowable spend-down strategies, and ensure compliance with look-back period rules. Advocates can also assist with documentation requirements and coordinate with elder law attorneys for complex situations.