What if I do not meet the economic tests?
If you do not meet the economic tests, you do not qualify for Medicaid, but do not panic. With the proper planning those who fail the eligibility tests can still be helped.
For example, if you do not meet the asset test because you own too many non-exempt assets, the law gives you the right to “spend down” your non-exempt assets to the approved level. Once you reach the approved dollar amount (currently $2,000.00), you will qualify for Medicaid.
Spending down your assets may not be as bad as it sounds. The spend down process can involve turning your non-=exempt assets (which you do not get to keep) into exempt assets (which you do get to keep). You turn one into the other. If all of your non-exempt property is converted into exempt property, then none of it is counted against you when you apply for Medicaid.