The first step in the spend-down process is to assess your current income and countable financial resources. Medicaid has specific income and financial resource limits that applicants must meet to qualify for long-term care coverage. As of 2024, the income limit for an individual applying for Institutional Medicaid in Arkansas is $2,742 per month, and the asset limit is $2,000.

Once you have assessed your income and countable financial resources, you need to calculate the amount you need to spend-down to become eligible. For income, this means subtracting the Medicaid income limit from your monthly income. For financial resources, subtract the Medicaid financial resource limit from your total countable financial resources.

To spend down excess income, you can use it to pay for medical expenses not covered by Medicaid, such as:

By using your excess income for these expenses, you can reduce your countable income to meet the Medicaid eligibility limit.

Spending down excess assets involves reducing your countable assets to meet Medicaid’s asset limit. This can be done through various strategies, such as:

Throughout the spend-down process, it’s essential to keep detailed records of anything you purchase or sell. This documentation will be required when you apply for Medicaid to prove that you have spent down your excess income and countable financial resources appropriately. Medicaid has a Look-Back Period of up to 60 months.

Once you have spent down your excess income and countable financial resources and met the eligibility criteria, you can apply for Medicaid. Be sure to submit all required documentation, including proof of any purchases or anything sold, income, and countable financial resources. Need help with the application process? We are here to help!