Client Option Spenddown

The first of the two payment options is the client option spenddown. This is a payment option available to people eligible for MA-LTC using a monthly medical spenddown. This option allows the client to prepay their monthly spenddown directly to DHS.

In order to use this option the client must:

Sign the Agreement to Prepay MA Spenddown (DHS-3081) (PDF), which provides the payment rules.
Pay the spenddown amount before the month of coverage.
Pay the spenddown timely (before the 20th of each month in order to prepay the spenddown for the following month).

Example:

Rachel is requesting MA-LTC through the EW. Although she is married, she does not have a community spouse because her husband resides in an LTCF. Her income is above the Special Income Standard (SIS). Rachel has a medical spenddown of $800 each month.

Action:

Allow Rachel to use the client option spenddown as a payment option. If Rachel signs and returns the DHS-3081 in August, along with her initial payment, the client option begins in September. In September, Rachel will pay her spenddown for October.

Whether a client pays the client option spenddown does not affect eligibility. If a payment is missed, claims processing for the following month will be completed using “potluck” processing.

Page 2

Obligation Payment Options

«Back | Next»

Skip to content subnavigation Questions? | Policy Manual | Training Information

Skip to content subnavigation
Questions? | Policy Manual | Training Information