A More Flexible Approach to Medicaid-Compliant Annuities

In a Medicaid crisis plan, the annuity portion needs to do more than meet the basic compliance requirements. It should fit into the attorney’s plan without getting in the way of the approval process.

A Medicaid-compliant annuity can be a strong planning tool, but it works best when it can be shaped around the facts of the case instead of forcing the case into narrow product requirements. AshBer has worked to make the annuity process more flexible, with fewer product restrictions and planning that fits into your practice.

Short terms can help when the spend-down is tight

Some cases call for a very short annuity term. At AshBer, annuities can be issued for as short as one month. Short term options are useful when a client has minimal excess resources or a tight spend-down timeline.

The annuity does not need to be bigger or longer than the case requires. A short-duration option gives the attorney another way to keep the annuity lined up with the best Medicaid strategy. When the spend-down options have already been maximized and the remaining amount seems too small for meaningful planning, a one-month term may be a workable solution.

Premium minimums and maximums should not dictate the plan

Medicaid planning is already complex enough without running into unnecessary minimums or maximums on the annuity premium. The available spend-down number is what it is. If the annuity needs to be a specific amount, the product should not force the attorney to rework the plan just because the premium falls outside a standard range.

AshBer’s Medicaid-compliant annuities do not have a minimum or maximum premium requirement, so the annuity can be issued for the amount that makes sense for the case.

Payment timing can be built around the case

The payment schedule affects the client’s eligibility start date. Depending on the facts, an attorney may need the first payment to be made right away, or the case may call for a delayed first payment. AshBer can issue annuities with a payment made immediately or delayed up to one year from the issue date.

We have annuity options that do not require funds to be held for a full 60 days. If you are trying to preserve the earliest possible eligibility date for your client, the payment schedule can be structured around that timing.

ACH and direct deposit without waiting on a voided check

If a client cannot get to the bank easily, or if the plan needs to move quickly without another trip for the family, we can use the account information instead to initiate ACH or set up direct deposit without requiring a voided check.

The same flexibility can be useful if direct deposit needs to be set up to pay into a Qualified Income Trust or Miller Trust, but checks for the trust account are not available yet. The annuity does not have to sit while the family waits for ordered checks to arrive in the mail.

Tax-qualified planning without unnecessary tax consequences

Tax-qualified funds add another layer to the annuity planning process. AshBer regularly handles cases involving 401(k) and IRA transfers and rollovers when the goal is to avoid triggering unnecessary tax consequences during the Medicaid planning process.

Some IRA cases require the annuity payments to be directed back into an IRA. In those cases, payments may be coded through the 1099 process so they are reported back into an IRA, rather than creating a tax reporting issue that has to be cleaned up later.

Our tax-qualified annuity options can help reduce unnecessary tax and administrative issues down the line. The attorney should not have to force a qualified account into a process built only for non-qualified funds.

Existing advisor relationships can stay in place

Some clients already have trusted financial advisors involved. Existing advisor relationships do not have to create a barrier. If you or your client have an advisor or licensed insurance agent already in place, AshBer can work with them as part of the annuity process.

We keep the planning process collaborative, so the annuity funding doesn’t become a tug-of-war over who is involved. The focus stays on getting the client’s Medicaid plan completed correctly.

You decide how involved we should be

Each attorney handles Medicaid planning a little differently. Some want help thinking through the numbers before the application is filed, while others already know the plan and just need the annuity application handled cleanly.

We can be as involved or as hands-off as you want us to be. Our role is to support the planning process you have in place.

Flexible options for complex Medicaid planning

AshBer’s annuity process is built so the annuity piece does not restrict the planning or hold up the Medicaid approval. The structure should fit the case, not the other way around.