Page 7 - A Simple Guide to Medicaid Planning

MEDICAID QUALIFICATION
M E D I C A I D Q U A L I F I C A T I O N
MEDICAID QUALIFICATION

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PLANNING TERMS
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PLANNING TERMS
Confused by legal jargon? Our Medicaid Terms Guide
breaks down the words you need to know so you can
navigate the process with confidence.
COUNTABLE ASSETS
Assets considered by Medicaid when determining eligibility (e.g., savings, non-homestead property,
investments).

NON-COUNTABLE (EXEMPT) ASSETS:
Assets not counted toward Medicaid’s asset limit (e.g., primary residence under equity limits, one
vehicle, certain personal property).

INCOME LIMIT:

The maximum monthly income an applicant may have to qualify for Medicaid. In Florida, excess
income may require planning tools such as Qualified Income Trusts.

ASSET LIMIT:

The maximum amount of countable assets an applicant may have to qualify—typically $2,000 for a
single applicant in Florida.

QUALIFIED INCOME TRUST (QIT/MILLER TRUST):

A special trust used to reduce an applicant’s countable income to meet Medicaid’s income eligibility
rules.

LOOK-BACK PERIOD:

A five-year period during which Medicaid reviews financial transactions to ensure assets were not
transferred for less than fair market value.

TRANSFER PENALTY:

A period of ineligibility resulting from gifting or transferring assets during the look-back period.

SPEND-DOWN STRATEGY:

A plan to legally reduce countable assets to qualify for Medicaid, often by paying off debts,
prepaying funeral costs, or purchasing exempt assets.

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