What tips should I keep in mind?

Medicaid has a 5-year look-back period for asset transfers — gifting assets to qualify can result in a penalty period. Prepaying funeral expenses, paying off a mortgage, and home repairs are legitimate spend-down strategies. A Medicaid-compliant annuity can convert countable assets into an income stream for the community spouse.

Medicaid Spend-Down Calculator

Calculate how much you need to spend down your assets to qualify for Medicaid long-term care benefits.

Results

Visualization

How It Works

Medicaid requires applicants to "spend down" assets to a low threshold before coverage begins. Married couples get a Community Spouse Resource Allowance (CSRA) to protect a portion of joint assets for the at-home spouse.

The Formula

Spend-Down = Total Assets − (CSRA + State Asset Limit)
Months Private Pay = Spend-Down ÷ (Care Cost − Income)

Variables

CSRA — Community Spouse Resource Allowance (2024: $31,584–$154,140, half of joint assets)
State Limit — Applicant asset limit varies by state ($2,000 in most states)
Gap — Monthly care cost minus income — determines burn rate

Example

Married couple with $150,000 assets: CSRA = $75,000, applicant limit = $2,000. Spend down = $73,000. At $6,000/month gap: ~12 months of private pay before Medicaid eligibility.

Tips

Medicaid has a 5-year look-back period for asset transfers — gifting assets to qualify can result in a penalty period.
Prepaying funeral expenses, paying off a mortgage, and home repairs are legitimate spend-down strategies.
A Medicaid-compliant annuity can convert countable assets into an income stream for the community spouse.
Consult an elder law attorney — Medicaid rules vary significantly by state.
Apply for Medicaid the same month you enter a facility to establish a protective filing date.