Government assistance programs like Supplemental Security Income (SSI) or Medicaid generally require notification of the funds received along with documentation of all expenses paid to avoid eligibility violations. This notice may include receipts, settlement or inheritance information, and bank statements.

When recipients of Supplemental Security Income (SSI) or Medicaid use a Spend Down to maintain benefit eligibility, we recommend they send notice within 10 days of completion to the respective government agencies to avoid disruption in benefits.

What is a Spend Down Notice?

A Spend Down Notice is a crucial component of SSI or Medicaid eligibility for individuals whose income exceeds the program’s thresholds but still face significant medical expenses. A notice usually consists of a combination of documents, to inform government agencies of a Spend Down and address changes in assets or income as required by agencies. Essentially, it serves as a mechanism for individuals to “spend down” their excess income on medical bills to qualify for coverage.

Government assistance programs like Supplemental Security Income (SSI) or Medicaid generally require notification of the funds received along with documentation of all expenses paid to avoid eligibility violations. This notice may include receipts, settlement or inheritance information, and bank statements. If you have additional questions or need assistance, we encourage you to contact your local Social Security and Medicaid office for details or consult a Special Needs Attorney.

Learn More About Our Recommended 3-Step Process for Sending a Spend Down Notice:

1. Identify the appropriate government agencies
For SSI recipients: Send notice to recipient’s local Social Security Administration Office.

For Medicaid recipients: Send notice to recipient’s local Department of Health Care Services office or agency that administers their state’s program. The name of this agency varies by state, but recipients should have annual communication with name and contact information.

Please Note: Some State’s Medicaid program names vary. For example, Medicaid in California is called Medi-Cal, and in Massachusetts, it ‘s called MassHealth.

2. Gather information and documents for Spend Down notice and draft letter
A Spend Down notice should include a written letter, documentation outlining the source of funding (such as settlement or inheritance paperwork),receipts, and bank statements. Bank statements should show excess funds entering and leaving a recipient’s account. The bank statements should align with the submitted receipts or other documentation showing the depletion of funds.The recipient’s Spend Down letter should include the current date, recipient ’s, legal name, contact information, and address.

3. Send via Certified Mail
Before sending Spend Down notice, make copies of everything being sent for record-keeping. Once copies are made, send all of the documents using certified mail with a signature to keep for your records. We’ve seen government agencies lose documents and we believe a verified signature of receipt may come in handy in the future.

If you have additional questions or need assistance, we encourage you to contact your local Social Security and Medicaid office for details or consult a Special Needs Attorney. Please keep in mind, there may be a charge to consult an attorney.

DISCLAIMER: The information provided by Secured Alliance is for informational purposes only and is intended to be used as a non-legal guide before consultation with an attorney familiar with your specific legal situation. Secured Alliance is not engaged in the practice of law or rendering legal advice or counsel. No such legal advice or counseling is either expressly or impliedly intended. This form is not a substitute for the advice or counsel of an attorney. If you require legal advice, you should seek the services of an attorney.

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