Let’s say someone is applying for MassHealth to help cover nursing home costs. But—uh oh—they have too much money in the bank. Don’t panic! MassHealth has rules about how much money (called “countable assets”) someone can have, and there’s a safe way to spend down that money without getting in trouble.
Think of it like cleaning out your backpack before a school trip—you have to take out the extra stuff and only bring what’s allowed. MassHealth lets you “clean out” extra money, but only if you spend it on approved things.
Here are a few of the good, legal ways to spend down money so you can qualify:
1. Burial Trust (Prepay for a Funeral the Smart Way)
A Burial Trust is like buying a funeral in advance. You sign a contract with a funeral home, and once you do that, the money can’t be touched again—it’s locked in. That way, your family won’t have to worry about paying for your funeral later, and MassHealth won’t count that money against you.
Why it’s allowed: It only covers YOUR funeral and burial, and it’s irrevocable (can’t be changed).
2. Burial Savings Account (Keep $1,500 Just for This)
MassHealth lets you set aside up to $1,500 in a separate savings account just to pay for funeral expenses. This is different from the burial trust—this is just a regular savings account that’s labeled for burial costs.
Make sure: The account is separate and clearly labeled as a burial account.
3. Personal Needs Purchases (Buy Things You Actually Need)
MassHealth lets you buy items that the person applying for care needs—especially if they’re moving into a nursing home. This could include:
- New clothes
- Eyeglasses or hearing aids
- A TV or tablet for their room
- A comfy chair or mattress
- Wheelchair accessories or medical devices
Pro Tip: If it’s a big purchase, keep the receipt! MassHealth might ask for proof that you spent the money the right way.
Why All This Matters:
MassHealth doesn’t want people just giving away money or buying random things to qualify. They want to make sure the money is being used responsibly. So if you're going to spend down, make sure it’s on approved items like the ones above—and always keep good records.
Final Takeaway:
Spending down can actually help someone qualify for MassHealth—but only if you do it the right way. That means no giving away money, no paying off someone else’s bills, and definitely no gambling it away at the casino.
If you’re unsure about what’s allowed, it’s always smart to talk to a MassHealth expert or an elder law attorney.
Want help figuring this out for someone in your life?
Visit ViewAllOptions.com to explore expert guidance and find nursing homes that work with MassHealth.
