Medicaid Compliant Annuity

ACCELERATE YOUR SPEND-DOWN TO MEDICAID ELIGIBILITY AND HELP PRESERVE YOUR ASSETS

A Medicaid Complaint Annuity (MCA) is a powerful tool that we can utilize in crisis planning to achieve a better solution for those who are facing a costly nursing home stay.

  • Accelerated Medicaid Eligibility
  • Asset Preservation
  • Peace of Mind

A Medicaid Compliant Annuity is a Single Premium Immediate Annuity (SPIA) that provides income to the owner and contains zero cash value.  When 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.

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REQUEST AN INTAKE FORM

What is MEDICAID?

A state and federal program (called Medical Assistance in Minnesota) that provides health insurance that covers a broad array of health services for people, including families and children with low-incomes, older adults and people with disabilities.

TO BE MEDICAID COMPLIANT, AN ANNUITY MUST:

  • BE IRREVOCABLE – The payment amount, term, and parties to the annuity contract cannot be altered.
  • BE NON-ASSIGNABLE – The annuity contract cannot be assigned to another party or sold on the secondary market.
  • BE ACTUARIALLY SOUND – The term of the annuity must be fixed and equal to or shorter than the owner’s Medicaid life expectancy, which is determined by either the life expectancy table published by the Chief Actuary of the Social Security Administration or the state’s specific life expectancy table, depending on what is outlined in each state’s Medicaid manual.
  • PROVIDE EQUAL PAYMENTS – The annuity contract must provide equal monthly payments with no deferral or balloon payments.
  • NAME THE STATE MEDICAID AGENCY AS BENEFICIARY – In most cases, the state Medicaid agency must be named primary death beneficiary to the extent of benefits paid on behalf of the nursing home resident.  Exceptions to this rule vary by 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 typically must be named contingent beneficiary.

 

A MEDICAID COMPLIANT ANNUITY MAY BE RIGHT FOR YOU IF YOU:

MINNESOTA

Divestment Penalty Divisor $9,312 Per Month
Community Spouse Resource Allowance $137,400
Minimum Monthly Maintenance Needs Allowance $2,289
Maximum Monthly Maintenance Needs Allowance $3,435

If you feel there is a potential Medicaid crisis, we will complete our intake form to gather and organize the facts.  Our team of experts will then analyze your situation and propose a potential solution.