How to Calculate Medicaid Spend Down

Medicaid is a government-run health insurance program for low-income people. People whose income is too high to qualify for Medicaid but meet all other requirements may still be able to receive Medicare coverage through the Medicaid Spend Down program. Participants must use their own money to pay for medical expenses until they reach the spend-down amount. Medicaid then starts paying. The Medicaid spend-down is similar to an annual insurance deductible, but you must meet the spend-down every six months. Recipients must continue the six-month spend-down cycle until they no longer have excess income.

Instructions

• 1

  Contact your state's Medicaid program to request the current year's spend-down income period limit.

• 2

  Add your monthly income from all sources, including job, pension and investments.

• 3

  Multiply your monthly income by six, the number of months in the spend-down period, to get your spend-down period income.

• 4

  Subtract your state's spend-down period income limit from your spend-down period income to get the spend-down amount.