Funeral Planning & Medicaid

Funeral Planning & Medicaid…spend down rules.

If you are in need of spending down assets to qualify for Medicaid coverage for nursing home or in-home health care, the subject of funeral planning may have come up.

Medicaid is a joint state and federally funded health insurance program intended for people with low income and a dire need for medical care. Those whose non-exempt assets are above the state-mandated amount cannot qualify for assistance until their assets are drained by health care costs. This can be devastating for a family that has saved diligently over the years, especially if a spouse or dependent child is involved.

No one wants hard-earned assets to be whittled away by health care expenses. Fortunately, there are certain ways to reduce non-exempt assets or to “spend down” assets in very specific ways so that they are excluded—and thus sheltered—from the total assist considered to qualify for Medicaid.

Who Qualifies for Medicaid?

Eligibility tends to vary for those who qualify, but generally, seniors aged 65 or older, families living in poverty, pregnant women and disabled individual can qualify depending on the assets held. The limit on how many assets and how much income a person is allowed are determined at the state level

Non-exempt Assets
Non-exempt assets are those that Medicaid considers as part of your accessible, countable assets when you apply for assistance. Non-exempt assets will be considered as available to you use toward paying the cost of your care. These include (but are not limited to):
*Cash *Checking and savings accounts *Retirement accounts including IRA’s, 401(k)’s, 403(b)’s
**Prepaid funeral contracts that are not irrevocable (can be cancelled) *Trust depending on how set-up *Property other than primary residence

For information contact: Charles Gardner
Alsoreuquest a copy of the brochure Funeral Planning & Medicaid by emailing

Funeral n Medicaid