Income too high for Medicaid? ‘Spend down’ to qualify

By ALEX ROSENBERG of NerdWallet

Making more than the maximum income level for Medicaid isn’t necessarily a deal breaker. After a long pause during the COVID-19 public health emergency, states have resumed checking whether Medicaid beneficiaries’ income meets the eligibility requirements. People whose income has gone up in the past couple of years could be disenrolled. But qualifying medically needy people whose income would otherwise be too high have some options. They can spend down the income they make over the limit on certain expenses, such as medical bills or Medicare premiums. After spending the required amount out of pocket, Medicaid covers further medical expenses.