Need to Spend Down for MassHealth? How to Do It Right in MA
If you or a loved one are preparing to transition into a nursing home or require long-term care in Massachusetts, you have likely heard the term “spending down.” Establishing a legal MassHealth spend down MA strategy is essential because MassHealth is a needs-based program with strict financial limits. In Massachusetts, an individual can generally only retain $2,000 in countable assets to qualify, meaning excess funds must be spent properly before approval.
What is a MassHealth Spend Down MA Plan?
A proper MassHealth spend down MA plan is the process of legally reducing your countable assets so that you meet the $2,000 eligibility threshold. This must be done carefully to ensure you are receiving fair market value for whatever the money is spent on. Doing it incorrectly can result in severe coverage penalties.
The Right Ways to Spend Down
While you cannot simply give your money away, an allowable MassHealth spend down MA strategy lets you spend your excess funds on items and services that benefit you or your spouse. Some highly recommended ways to spend down include:
- Paying Off Debt: You can use funds to pay off mortgages, car loans, or medical bills.
- Prepaying Funeral Expenses: Purchasing an irrevocable prepaid funeral contract relieves your family of a future financial burden while legally reducing your countable assets.
- Home Modifications: Paying for necessary repairs, upgrades, or accessibility modifications (like a wheelchair ramp).
- Medical Equipment: Out-of-pocket costs for hearing aids, eyeglasses, or dentures.
The Wrong Way to Spend Down: The Look-Back Rule
The single biggest mistake families make is attempting to spend down by giving money to their children. MassHealth employs a 5-year look-back period. Any money given away or sold for less than fair market value within 60 months of your application will trigger a “penalty period” where MassHealth will refuse to pay for your nursing home care.
Why You Need a Medicaid Consultant
Deciding how to allocate your assets can feel like walking through a minefield. To ensure your MassHealth spend down MA goes smoothly without triggering the look-back penalty, let the professionals guide you. At Brunelle Medicaid Consultants LLC, our success rate speaks for itself, and our unique one-time fee structure carries you through the entire process.
Call Brunelle Medicaid Consultants LLC today at 844-526-2123 or reach out to us at to schedule your private consultation.
