Definition:
A distinction for those whose current income minus medical expenses equals the maximum allowed by a state's Medicaid program.
If you have been denied Medicaid coverage because your income is too high, you might qualify as a "medically needy" individual. Medically needy individuals spend a high proportion of their income on medical expenses, and would otherwise be eligible for Medicaid if their income were lower.
Sometimes people refer to this as "spending down" to eligibility because the applicant is spending enough on medical expenses to offset their additional income.
Not every state provides coverage for the medically needy. Be sure to check with your state's Medicaid office to find out if you are eligible.
