Spenddown Planning

Elder Law Associates PA assists clients in spending down their assets to achieve Medicaid eligibility. This may include a very simple spenddown plan involving the purchase of prepaid funeral arrangements with the remainder of assets being spent down on the individual’s cost of care. In fact, many of our clients retain us to handle the filing of a Medicaid application without seeking asset protection (either because there are insufficient assets or the clients prefer to spend the money down on the individual’s long term care needs). The Medicaid rules and regulations are notoriously complex and we strive to give our clients the peace of mind knowing that their loved one’s Medicaid application will be handled by us. At an average cost of $7,500 per month for nursing home care, we understand our clients’ desire to have someone guide them through the Medicaid application process.

We have established relationships with caseworkers at the Department of Children and Families. This allows us to process applications more efficiently and address issues in connection with establishing a person’s Medicaid eligibility directly with a caseworker.

We also counsel clients on more complex spenddown plans which require advance planning and other legal documents to implement. These plans may involve some form of trust, personal care contract or purchase of income-producing real estate.

Finally, we can accelerate an individual’s Medicaid eligibility through a transfer of asset gifting program. This type of spenddown, typically referred to as “crisis planning,” can be an effective way to establish a person’s Medicaid eligibility where other alternatives are not viable.

One of the most significant changes brought about by the DRA is the requirement to file a Medicaid application in order to trigger the running of a penalty period for Medicaid eligibility purposes. Another application must also be filed once the penalty period has expired and benefits are desired. This dual Medicaid application requirement has increased the complexity of the Medicaid application process. Elder Law Associates PA assists clients in navigating this process to achieve the best results possible.