Medicaid is federally funded health insurance for low-income individuals. Although the federal government sets the guidelines, each state has its own specific eligibility criteria. There are certain income and asset limits to qualify for Medicaid. In most states, an individual cannot have more than $2,000 in countable assets. Your home, primary vehicle and personal possessions such as furniture and clothing are not considered countable assets. If your assets exceed the limit, consider spending down the assets to be eligible for coverage.
Instructions
1. Transfer assets to a family member in advance. If you think you are going to need Medicaid coverage in the future, transfer assets prior to applying for assistance. There is a 60-month lookback period for most gifts or transfers. Medicaid officials will review all financial records prior to your application.
2. Use your money to pay off your exempt assets. If you carry a balance on a mortgage or vehicle loan, use your assets to pay off the debt. Paying off assets you are allowed to keep enables you to spend down your assets wisely.
3. Pay your debt. Use your assets to pay credit card debt, medical bills or personal loans.
4. Spend money on your assets. If you have a home in need of renovation, use your money to make any desired repairs or upgrades. Since personal possessions are not counted, purchase new furniture for your home. You can also trade in your current vehicle for a newer model.
5. Plan for the future. Though most of us do not want to think about death, planning for the inevitable can save your family money later. You can use your assets to pay future funeral costs for you or your spouse.
Tags: your assets, your assets, countable assets, money your, personal possessions, your money
