What is Spend down?
Under current rules, if your income is above the special income limit of $2199 per month, you are able to deduct medical expenses like monthly health insurance premiums and recurring medical expenses to meet the limit.
What does the elimination of “Spend down” mean for Medicaid recipients with income over the special income limit?
The elimination of “Spend down” means that individuals with income over the special income limit who are residing in a nursing home, assisted living or who are receiving home and community based waivers like Passport will need to establish a Qualified Income Trust aka QIT or Miller Trust to maintain their Medicaid eligibility. Individuals receiving community Medicaid will either transition to another kind of Medicaid or be referred to the Federal Market Place for coverage. The Ohio Department of Medicaid has created a short video to assist recipients in understanding these changes. See https://www.youtube.com/embed/oes_t6EQvAY?rel=0autoplay=1
How do I establish a Qualified Income Trust aka QIT or Miller Trust?
The Ohio Department of Medicaid has provided a template at http://medicaid.ohio.gov/Portals/0/Initiatives/DDR/QIT-template.pdf For more information on the Qualified Income trust aka QIT or Miller Trust, contact an Ohio Medicaid planning lawyer.