When should applicants file for Medicaid?

When is it a good time to apply for Medicaid if you have excess resources?

Some will tell you that applicants need to spend all of their resources before applying. Although this is an option it’s not their only choice. Let’s consider the following scenario:

Applicant One: Has $200k in resources and was informed that he needs to spend down his excess resources before he could apply. Considering the cost of his present privately paid home care services he requires and receives he will impoverish himself in approximately two years. Example: Presently, home care services through a licensed home care agency can run approximately $25 per hour. The above applicant requires approximately 12 hours per day (12 x $25 = $300 per day) we then multiply ($300 per day x 30 days = $9,000 per month) and ($9,000 per month x 12 months = $108,000 per year). Once impoverished, applicant one can apply for Medicaid home care services.

Applicant Two: Has $200k in resources and was told she needs to transfer her resources before she could apply. With guidance from a Medicaid professional, she transfers her excess resources to a loved one and the following month she becomes eligible for Medicaid home care services.


Once applicant One applies for Medicaid he has no more money and if he needs things which Medicaid does not supply, such as a bigger TV, new furniture or appliances he is at the mercy of other people; however, applicant Two has saved all of her excess resources and if she requires or needs anything there is saved money that can be used for her needs.

When is the right time to apply for Medicaid if you have excess resources?
The answer is simple –  when you need services!