A Medicaid compliant annuity must be:
IRREVOCABLE
ACTUARILLY SOUND
NON-ASSIGNABLE
The term length, payment amount, and parties of the annuity contract may not be altered.
NON-ASSIGNABLE
ACTUARILLY SOUND
NON-ASSIGNABLE
The annuity contract may not be sold on the secondary market or assigned to another party.
ACTUARILLY SOUND
ACTUARILLY SOUND
PROVIDE EQUAL PAYMENTS
The term of the annuity must be fixed and equal to or shorter than the owner’s Medicaid life expectancy.
PROVIDE EQUAL PAYMENTS
NAME THE STATE AS A BENEFICIARY
PROVIDE EQUAL PAYMENTS
The annuity contract has to provide equal monthly payments. Balloon or deferral payments are NOT allowed.
NAME THE STATE AS A BENEFICIARY
NAME THE STATE AS A BENEFICIARY
NAME THE STATE AS A BENEFICIARY
In most cases, the state of Michigan must be named primary death beneficiary to the extent of benefits paid on behalf of the nursing home resident. Exceptions to this rule apply in certain cases.
MCA Strategies:
Strategies are primarily determined by marital status:
Married Couples:
In cases involving a married couple, the MCA may be purchased by either the client or their spouse. Typically, the goal of the plan design is to provide additional income to the community spouse and gain immediate Medicaid eligibility for the institutionalized spouse.
Single Person:
In cases involving a single person, we typically utilize the "Gift/MCA Plan", commonly referred to as the "Half a Loaf" strategy. This strategy allows the client to transfer some of their wealth to heirs, while still seeking and accelerating Medicaid eligibility.
