Mastering Wisconsin Medicaid Spend Down Rules
2025 Asset Protection Guide
With many nursing home costs adding up to $10,000 monthly in Wisconsin, savings can vanish fast. This guide simplifies Medicaid spend down rules, updated for February 27, 2025, with precise figures and strategies to protect your assets—all in about 600 words.
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What Is Medicaid Spend Down in Wisconsin?
Medicaid spend down reduces income or assets to meet Wisconsin’s limits: $2,000 in countable assets for individuals and $1,304.17 monthly income (2024, pending 2025 updates) Wisconsin DHS. Excess can only be spent on approved expenses.
5 Essential Wisconsin Medicaid Spend Down Rules
- Asset Limits Cap at $2,000 Countable assets must fall below $2,000 ($3,000 for couples) Wisconsin DHS. Exemption for non receiving spouse: home (up to $713,000 equity), one car, prepaid funeral costs.
- Income Requires Specific Spend Down The limit is $1,304.17 monthly, according to ForwardHealth WI. For example, a $2,500 income requires $1,195.83 in medical bills ($2,500 - $1,304.17) to qualify.
- Refi Trust Protects $15,000 instantly Irrevocable funeral trusts (IFTs) shield $15,000 per person immediately—there is no look-back DHS WI. The funds are locked for funeral costs.
- 5-Year Lookback Hits Transfers Wisconsin reviews five years. Gifting incurs penalties at $13,863 per month of value (2024) Medicaid Planning Assistance.
- Estate Recovery Targets Assets Post-death, Wisconsin may claim probate assets or your home—unless delayed by a spouse, minor, or disabled child DHS WI.
Wisconsin Spousal Impoverishment Protections
For couples, protections include:
Qualifying Spend Down Expenses in Wisconsin
Approved costs:
- Nursing home fees ($9,125–$12,000/month) (DHS WI)
- Medical equipment
- Prescription drugs
- Doctor bills
- Insurance premiums
Gifts DO NOT qualify.
How to Protect Assets in Wisconsin
Why Choose Refi Trust for Wisconsin Medicaid Spend Down Planning?
At Refi Trust, we specialize in helping Wisconsin seniors navigate Wisconsin’s Medicaid spend down laws:
- Immediate Asset Protection: Shield up to $15,000 (for yourself AND for each family member) with an irrevocable funeral trust
- Estate Recovery Defense: Keep funds safe from posthumous Medicaid claims
- Zero Service Fees: Completely cost-free consultations and trust setup
- Rapid Burial Trust Fund Distribution: Wire funds to the chosen funeral home within 48 hours
Don’t let Medicaid spend down rules drain your family’s assets. Contact Refi Trust today for a free consultation to secure your legacy. We offer nationwide services with Wisconsin-specific expertise, drawing clients from Milwaukee, Racine, Kenosha, Waukesha, Ozaukee, Washington County, and beyond.