{"id":1463,"date":"2022-12-09T01:41:43","date_gmt":"2022-12-09T01:41:43","guid":{"rendered":"https:\/\/law-oh.com\/?p=1463"},"modified":"2022-10-27T20:59:08","modified_gmt":"2022-10-27T20:59:08","slug":"couples-can-benefit-from-medicaid-compliant-annuities","status":"publish","type":"post","link":"https:\/\/law-oh.com\/couples-can-benefit-from-medicaid-compliant-annuities\/","title":{"rendered":"Couples Can Benefit From Medicaid-Compliant Annuities"},"content":{"rendered":"

As a financial product, an annuity pays a fixed amount of money every year, generally throughout the life of the owner of the annuity. Most annuities are deferred, meaning the payout doesn\u2019t occur until a later date. However, you can receive immediate payouts if you purchase a Medicaid-Compliant Annuity (MCA<\/a>). When you buy a Medicaid annuity, you give a company a lump sum of cash in exchange for a guaranteed income stream. While only private insurance companies can issue annuities, you may purchase them through banks, financial planners, insurance agents, and brokerage firms.<\/p>\n

The Benefits of a Medicaid Annuity<\/h1>\n

In what circumstances is a Medicaid annuity beneficial? Many Medicaid applicants are denied coverage for long-term care because they have too much money or too many assets. However, Medicaid applicants applying with insufficient funds to pay their nursing home bills can leave a healthy spouse destitute in the short term if paying out of pocket. A Medicaid-compliant annuity can accelerate eligibility for the joint state and federal Medicaid health insurance program, which pays for a person\u2019s medical bills and nursing home care while providing reliable income for the healthy at-home spouse.<\/p>\n

To properly plan for a Medicaid-compliant annuity, seek the advice of an elder law attorney who understands your state\u2019s Medicaid rules. There are ordinary immediate payout annuities that are not Medicaid-compliant, so it is critical to receive the correct advice before your purchase. The goal for married couples is for the healthy spouse (the annuity owner) to collect the annuity income while the spouse needing medical benefits from Medicaid-funded extended care and nursing home benefits remains eligible.<\/p>\n

Medicaid-Compliant Annuity Requirements<\/h1>\n