Information about Medicaid spend-down rules is available at Medicare.gov and at individual state websites, such as Health.NY.gov, as of 2015. The spend-down process allows individuals to subtract their medical expenses from their income to qualify for Medicaid as medically needy, even if their income exceeds their state's limit, explains Medicare.
To be considered medically needy, an applicant's measurable resources must also be below the resource amount the applicant's state allows, notes Medicare. Each state's Medicaid program operates under different rules, so individuals should consult their state's program to obtain information about qualifying and applying for program benefits. State and federal governments cooperate under the Medicaid program to assist limited-income people cover their medical costs. Program benefits include nursing home and personal care services that Medicare does not cover.