Don’t Leave Your Client Destitute: Offer a Restricted Medicaid Annuity
Did you know that Medicaid applicants may not be eligible for long-term care benefits if they have too much money? Well, it’s true. For many, this leaves their spouse paying the national average of $55,000 to $96,000 in nursing home costs, depleting all of their assets.
Annuities can wipe away the excess resources that prevent Medicaid eligibility, and replace them with a monthly check made payable to the applicant’s spouse (community spouse). When properly constructed, this technique preserves substantial assets — up to $1,000,000 or more — for the community spouse, who may live for many years.
Challenging Medicaid Rules
- Medicaid applicant may not receive benefits if they have more than $2,000 in assets, including the assets of the spouse
- The community spouse may be allowed to keep a resource allowance based on state Medicaid limits
- Income is counted only if it is payable to the Medicaid applicant (the “name on the check” rule), specifically excluding the community spouse
The Annuity Alternative to Spend-Down
- Create an income stream for the community spouse by purchasing a restricted single-premium immediate annuity (SPIA) thereby avoiding the spend-down requirement (paid for in a lump-sum premium payment with immediate income)
- Medicaid applicant must disclose their interest in annuity
- SPIA must be irrevocable and non-assignable with payments based upon community spouse’s life expectancy
- Payments must be made in equal amounts, with no deferral and no balloon payments
- Actuarially sound
- Designate the state Medicaid agency as the annuity beneficiary
Your Opportunity — Right now, 3.9% of the United States population is living in a nursing home. Without private insurance, Medicaid is the primary source of long-term care assistance for 1 out of every 7 people in the US. Medicaid Law allows the rearrangement of assets to qualify for Medicaid. How many of your clients can benefit? There are many carriers that offer restricted Medicaid annuities. Contact us to learn which ones are best.
Prevent your clients from destitution by offering a Restricted Medicaid SPIA. We can help you create a customized illustration for your clients. Let us help your clients plan to live the life they want. Call 844.CFG.PLAN (844.234.7526) for more information now.