Frequently asked questions
A Medicaid Compliant annuity is an annuity that has been annuitized, is irrevocable and unassignable, and that typically has the state department of Medicaid in the position of primary beneficiary up to the amount of money the state has paid out in benefits for a Medicaid recipient during their lifetime. There are some exceptions where the state may be named as the contingent beneficiary and a surviving spouse may be named as the primary beneficiary, but it is important to talk to an Elder Law Attorney about the Medicaid regulations in your state to determine how best to qualify for benefits. Medicaid Compliant annuities are frequently used as a tool by Elder Law attorneys in obtaining qualification for nursing home or assisted living Medicaid benefits for their elderly clients in need of long term care.
A Medicaid Compliant annuity usually works by taking a lump sum single premium from either liquid assets or a rollover of an existing annuity or IRA and annuitizing that premium immediately. This creates an income stream for either the applicant to help pay for care while protecting other assets, or an income stream for a healthy spouse while applying for long term care Medicaid benefits.
Long term care costs across the country are expensive and continuously on the rise. Depending on where you reside, nursing home costs can range anywhere from $7,000 to $20,000 a month per person. State Medicaid programs for long term care can help individuals continue to afford their nursing home, assisted living, or in-home care bills when their financial assets have been exhausted. Medicaid Compliant annuities are often used as a tool to preserve some of an individual's financial assets for a spouse or family instead of fully spending down all resources on care costs. This can be accomplished either by using the annuity to turn assets into income for a spouse, or using the annuity as income to help pay for care while preserving other assets. Contact an Elder Law attorney in your area to discuss what type of planning is right for you.
The annuity must be annuitized (in pay status) with a payout period that is actuarially sound for the annuitant’s life expectancy based upon their resident state’s guidelines, be irrevocable and unassignable, and typically it must have the state department of Medicaid listed as the primary beneficiary up to the amount of money the state has paid out in benefits for a Medicaid recipient during their lifetime.
If done correctly, purchasing a Medicaid Compliant annuity should not negatively impact Medicaid eligibility and could potentially help to obtain Medicaid benefits sooner.
Yes, you can purchase a Medicaid Compliant annuity before applying for Medicaid, but it is important to consult with an Elder Law attorney in your area to discuss options and to be connected with a reputable annuity provider who specializes in these specific types of products.
At a baseline the annuity must be annuitized (in pay status) with a payout period that is actuarially sound for the annuitant’s life expectancy based upon their resident state’s guidelines, be irrevocable and unassignable, and typically it must have the state department of Medicaid listed as the primary beneficiary up to the amount of money the state has paid out in benefits for a Medicaid recipient during their lifetime. Each state has their own Medicaid regulations so it is imperative to contact an Elder Law attorney in your area to determine what is needed to make an annuity Medicaid compliant for your state.
Your state’s Medicaid program will be listed as a primary or contingent beneficiary meaning that upon your passing, the remaining premium amount that has not been paid out may be subject to Medicaid Estate recovery. Work with an Elder Law attorney in your area to minimize risk and disadvantages.
Beyond meeting the specific qualifications in your state to be Medicaid Compliant, a Medicaid Compliant annuity typically has a shorter payout period than a standard annuity. Many Medicaid Compliant annuities can pay out as quickly as two months to as long as is allowable to be actuarily sound in your state based on your life expectancy.
Seniors in need of long term care in the form of a nursing home, assisted living, or in home care can benefit from using a Medicaid Compliant annuity to help preserve assets from the impact of long term care expenses
Costs for Medicaid Compliant annuities vary by provider and by the amount of money put into them. Some providers charge a flat fee and others charge a percentage of the total premium, or a mix of both depending on the value of the total premium. Talk to an Elder Law attorney in your area to be connected with a reputable provider and to discuss fees.
Work with an Elder Law attorney in your area to determine if your annuity purchase is Medicaid Compliant. Be careful as only a few financial companies offer the specific types of annuities needed to be eligible for Medicaid benefits. An Elder Law attorney can connect you with reputable annuity providers well versed in Medicaid regulations in your state.
Yes, you can transfer assets into an annuity to qualify for Medicaid benefits as long as the annuity is Medicaid compliant and meets the requirements of your state’s Medicaid program. Contact a local Elder Law attorney to discuss if this is the right option for you and which of your assets could be put into a Medicaid Compliant annuity.
It can benefit your estate by helping in the preservation of assets from the impact of long term care costs, but it will also name the state as a beneficiary in order to be Medicaid compliant. This means upon your passing a portion of the assets inside the annuity could be subject to Medicaid estate recovery. Talk with an Elder Law attorney in your area to determine how best to use a Medicaid Compliant annuity in preserving your estate.
Medicaid Compliant annuities are suitable in specific cases. Contact a local Elder Law attorney in your area to discuss if this financial product will benefit you
We are licensed to handle business in all 50 states and the District of Columbia.
We have been in Crisis Medicaid Planning and Medicaid Compliant Annuity business for 20-years. Our staff has a combined over 40 years of experience in the industry.
At AshBer, we can appoint anyone to see the Medicaid SPIA who has their State Life and Health Insurance License. With that said, it is imperative that with every MCA case, an experienced Elder Law Attorney is involved and signs off on the product for Medicaid Spend Down.
Some of the insurance companies that offer MCAs have exclusive selling agreements with another company in the industry which precludes a company like AshBer from accessing the product directly.
Yes, Attorney Todd Whatley, CELA will provide fair hearing support in situations where an annuity purchased through AshBer is challenged by a state Medicaid office.
Our fees are lower than the competition. We save your clients hundreds and even thousands of dollars (in some instances) every day.
Because we offer annuity terms as short as 2-months, we have the flexibility to provide a solution for virtually every single client we work with.
Yes we do. At AshBer, our dedicated Planners are available to provide whatever assistance you may need in getting the best plan implemented for your client. Our fee schedule only applies when the client decides to purchase the MCA.
No, everything that we provide on our website is free to access. No service fees or account registration. We have education webinars, planning tools, and much more available at your disposal.