Definitions for "Medically Needy"
Term used to describe individuals who meet all conditions of enrollment in Medicaid programs, except that they are over the income guidelines. Individuals can use incurred medical expenses to “spend down” to income limits. Compare with categorically needy”.
Individuals and their families who have too much income to qualify under Medicaid's mandatory or optional categorically needy groups but can qualify for certain funds due to their high level of medical expenses. This can be accomplished by "spending down" to Medicaid eligibility by incurring medical and/or remedial care expenses to offset excess income, thereby reducing it to a level below the maximum allowed by that state's Medicaid plan. Also known as "medically indigent."
Medically Needy is another Medicaid Program in New Jersey that in the long-term care arena covers only nursing homes. It does not cover assisted living, home care or adult day care.