Definitions for "Spend-down"
Process by which individuals who would be eligible for Medicaid except for their monthly income subtract their medical costs from their income to get it down to or below the limits for Medicaid.
Medicaid financial eligibility requirements are strict, and may require beneficiaries to spend down/use up assets or income until they reach the eligibility level.
The procedure of liquidating assets and using the proceeds to pay for healthcare and other specific expenses in order to qualify for Medicaid benefits.