What significant change was made to Medicaid spend-down laws?

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The significant change made to Medicaid spend-down laws involves the elimination of spousal impoverishment provisions. This adjustment was designed to protect the financial stability of spouses of individuals who require long-term care services. Prior to this change, when one spouse entered a nursing home or received similar levels of care, the couple often faced significant financial strain, as the state could require the spouse in the community to deplete their assets to qualify for Medicaid.

The elimination of spousal impoverishment rules means that the healthy spouse can retain a certain level of income and assets, thereby ensuring that they are not left in a financially precarious situation simply due to the healthcare needs of their partner. This change serves to promote more equitable financial support between spouses and helps to safeguard the well-being of the non-institutionalized spouse.

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