Medicaid has been much discussed here but I am still wondering just how they go back 5 years to check if you have been spending down?

If you apply for Medicaid (not Medicare, which is insurance that you pay for), which is for people who do not have savings or assets to care for themselves, then Medicaid (a joint state/federal program require you to provide them with 5 years of financial accounting of where your income has gone. "SPEND DOWN" is using funds for your own care, housing, living expenses until it is under the allowed amount. If you are a married couple, the rules are very different. In any event, it behooves you to find an eldercare attorney who can walk you through this. And make sure that your children understand all this as well.