Medicaid is jointly funded state and federal health insurance program to help low-income individuals receive medical care and defray the cost of prescription drugs. The program also provides benefits Medicare normally does not cover, such personal care services and nursing home care. If you’re eligible for Medicaid in your state, you are also automatically eligible for the Extra Help program, which pays for your Medicare Part D prescription drug coverage.
To meet Medicaid eligibility requirements, your total countable income and assets must be no more than $2,000 (more or less depending on the state you live in). If your total countable income and assets are greater than $2,000, you can “spend down” your assets in order to qualify by spending the extra assets on items Medicaid does not count, such as:
- Home repairs or updating home furnishings
- Replacing an old automobile
- Paying for more home care
- Paying off a mortgage
- Prepaying funeral expenses
- Purchasing a new home
