CICP Liquid Resource Spend Down

Liquid Resource Spend Down

The Liquid Resource Spend Down (Spend Down) is a way for CICP applicants to qualify for CICP even if they are found to be slightly over income. It allows applicants to use some of their liquid resources to pay part of their medical bill in order to qualify for the program. Hospital providers who count liquid resources must allow eligible CICP applicants to use the Spend Down if they qualify for it.

What is a Liquid Resource?

A Liquid Resource is usually a bank account. It can be any account that money can be easily withdrawn from without a penalty. Types of accounts can include checking, savings, trusts, and CDs, to name a few. The CICP does not allow retirement accounts to be counted as liquid resources, but monthly payments from retirement accounts can be counted as income.

Who can use the Spend Down?

If the applicant is found to be over income by an amount less than the protected portion of their bank account, they can use the money in their bank account, including the protected portion, to complete the Spend Down and qualify for CICP. 

What is Protected Income?

Under the CICP, at least $2,500 of the applicant’s bank account is not counted towards the applicant’s liquid resources for each member of their family. This means a family of two has at least $5,000 that is “protected” from being included in their liquid resources. A family of three has at least $7,500 that is “protected,” and so on.

How does an Applicant use the Spend Down?

The amount the client needs to spend down must be applied to a medical bill. The applicant can be sent to the provider’s billing department to pay a portion of their outstanding bill(s) before completing the CICP application. The applicant must bring a receipt, invoice, or other documentation from the billing department stating that they have paid the amount towards one or more of their outstanding bills.

Do applicants have to use the Spend Down?

No, an applicant does not have to use the Spend Down if they do not want to. However, it is often very beneficial for an applicant to use the Spend Down, as any medical bills from a CICP provider from the previous 90 days will receive the CICP discount. Providers cannot forbid the applicant to use the Spend Down, nor can they force them to use it. If an applicant qualifies for the Spend Down but does not use it, they do not qualify for the program.