Husband is on ABD Medicaid and I am on Medicaid. Also he had a stroke a couple years and is on Social Security disability. I am his caregiver. The bills have become unbearable so we were just approved for a home refi which paid up all of our credit cards and left us was $5300 left over which I know we cannot keep it. It will be over our $3000 asset limit. my question is can we use that remaining money to pay back a friend that we owe money to which is a $900 buy a refrigerator because we don’t have one haven’t for three months and pay our utilities and water and maybe a year worth of car insurance. I read online somewhere that you can’t have the assets in your account on the first of the month it will count against us as it’ll be over the asset limit and will kick him off of his medicaid. my husband cannot lose his Medicaid as one of his prescriptions after Medicare. It is $1100 out of his pocket. This is why we pay $350 a month to keep his Medicaid. We just cannot lose it. I was told we only had to report any leftover money that would be an asset. I was just wondering if there’s any question of what we could spend it on I mean it’s money that we are paying back. It is a loan just wanna make sure that it’s OK that I spend it on what bills I want and things that we need here in the home.
Based on what I know, you should spend the 5300 down to under your 3000 asset limit before the first of next month to protect your husband's Medicaid. Your planned expenses, like paying back your friend, buying the refrigerator, and paying bills, are generally allowed ways to reduce your assets.
Just make sure to keep records and receipts for everything you spend.