Medicaid spend-down is a legal process that allows individuals to reduce countable assets in order to qualify for Medicaid long-term care benefits. When done incorrectly, spend-down strategies can trigger penalties and delay eligibility. Working with an experienced elder law attorney in Cincinnati helps ensure the spend-down is handled properly while preserving as much of your estate as possible.
When Assets are Above Medicaid's Eligibility Limits
A Medicaid spend-down occurs when an individual has assets above Ohio Medicaid’s eligibility limits and must reduce those assets before qualifying for benefits. Many families fear that spend-down means losing everything, but that is not necessarily the case. With proper legal planning, spend-down strategies can be used to convert countable assets into exempt assets and improve Medicaid eligibility outcomes.
Rules Governing Spend-down
Ohio Medicaid rules strictly regulate how assets may be spent or transferred. Paying for care, medical expenses, home improvements, debt reduction, or certain exempt resources may be allowed, while gifts or improper transfers can trigger penalties. An elder law attorney helps families understand which expenses are permitted and which actions could jeopardize eligibility.
Five-Year Look Back Period
The Medicaid five-year look-back period plays a critical role in spend-down planning. Medicaid reviews financial transactions to ensure assets were not transferred for less than fair market value. Mistakes during this period can result in penalty periods where Medicaid benefits are denied, forcing families to pay out of pocket longer than expected.
Medicaid Spend-down Planning
Medicaid spend-down planning is often combined with broader elder law and estate planning strategies. Proper powers of attorney, trust planning, and beneficiary reviews help ensure that spend-down efforts align with long-term goals and family protection. Without coordinated planning, even well-intended decisions can have unintended consequences.
Whether you are planning ahead or facing an immediate need for long-term care, professional guidance can make a significant difference. Krugler Law offers free consultations for Medicaid spend-down planning in Cincinnati and surrounding areas. Call (513) 916-1600 today to discuss your options and protect your financial future.