MEDICAID COMPLIANT ANNUITY
Accelerate Your Client's Eligibility for Medicaid
A Medicaid Compliant Annuity is a powerful tool that helps elder law attorneys achieve a better solution for clients facing a costly nursing home stay. This innovative product helps achieve:
A Medicaid Compliant Annuity is a single premium immediate annuity (SPIA) that contains zero cash value and provides income to the owner. Properly structured, this annuity functions as a spend-down tool that eliminates excess countable assets, allowing the nursing home resident to become eligible for Medicaid benefits.
a Medicaid Compliant Annuity must:
The annuity contract payment amount and term cannot be altered, and the parties to the contract cannot be changed.
The annuity contract cannot be assigned to another party and cannot be sold on the secondary market.
The term of the annuity must be fixed and must be equal to or shorter than the owner’s Medicaid life expectancy. This figure is determined by the life expectancy table published by the Chief Actuary of the Social Security Administration, or by a state’s specific life expectancy table, as outlined in each state’s Medicaid manual.
The annuity contract must provide equal, monthly payments, with no deferral or balloon payments.
In most cases, the state Medicaid agency must be named primary death beneficiary to the extent of benefits paid on behalf of the institutionalized individual. Exceptions to this rule vary from state to state but may apply in certain cases involving a married couple, or a minor or disabled child. If a particular case qualifies for an exception, the state Medicaid agency likely must be named contingent beneficiary.
Community Spouse
Goal: Obtain immediate Medicaid eligibility for the ill spouse and preserve the assets of the spouse at home.
View Case StudyGift/MCA Plan
Goal: Create a wealth transfer to the Medicaid applicant's heirs while accelerating their eligibility for benefits.
View Case Study