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Medicaid Spend Down Rules for Florida
In Florida, two tests must be passed for an applicant to be approved for Medicaid coverage:
There is a difference between countable and non-countable assets. Exempt assets (non-countable) do not count towards the asset test and countable assets do count towards the asset test limits. The following are non-countable assets:
If you, and your spouse's assets are over the asset test limits, you will have to "spend down" your assets until you qualify. Specifically, you will have to spend your hard earned assets on you or your spouse's nursing home care until such time as they are below the asset test limits and you can qualify.
The Medicaid Income Test
Gross Income for the applicant must be less than $1,911 per month
Gross Income for the spouse may be unlimited
The Medicaid Asset Test
If you qualify under the income test you must still pass the Medicaid asset test. The asset test level for an individual is $2,000 in countable assets and $104,000 (2008) in countable assets for a non applicant spouse not in a nursing home facility. For married couples, both persons must qualify under the asset test.
There is a difference between countable and non-countable assets. Exempt assets (non-countable) do not count towards the asset test and countable assets do count towards the asset test limits. The following are non-countable assets:
- Homestead of any value (with some limitations)
- First car of any value
- Second car if it is greater than 7 years old but less than 25 years old. (Cannot be a luxury car)
- Life Insurance up to $2,500 or cash value of Life Insurance
- Burial Plots for you and your spouse and others in your name ($2,500 each)
- Household and personal belongings
- Irrevocable Burial Contracts and Funeral Trusts
If you, and your spouse's assets are over the asset test limits, you will have to "spend down" your assets until you qualify. Specifically, you will have to spend your hard earned assets on you or your spouse's nursing home care until such time as they are below the asset test limits and you can qualify.
Transfers
You cannot just simply give your assets away to loved ones or charity to qualify. Florida law provides a five year "look-back" for transfers to individuals as well as trusts. What is a look-back? When an application for benefits is made, the reviewing authority has the right to examine all financial transactions of the applicant within the look-back period, which will now be five years for all transactions. The look-back period or penalty period starts on or after a person actually enters a nursing home.