1. What is a Medicaid compliant annuity?

A Medicaid compliant annuity is a financial product offered by insurance companies that is designed to help people qualify for Title 19 medical expenses. A Medicaid compliant annuity is the transformation of an asset into income for the community spouse. This may lead to the Title 19 applicant being accepted into the program for having satisfied the state's income restrictions. The state is often made the beneficiary in the event of the surviving spouse passing away prior to the distribution of all the funds from the asset. 

2. How do I know if my state offers Medicaid compliant annuities?

Medicaid compliant annuities are regulated by the federal government, and states are only allowed to offer them in certain circumstances. To find out whether your state offers Medicaid compliant annuity products, visit the website of the Center for Medicare & Medicaid Services (CMS).

Speaking with an Estate Planner and or Estate Planning Attorney is important in determining suitability.

 3. Why should I consider using a Medicaid compliant annuity instead of a traditional annuity?

Traditional annuities are often referred to as “fixed income” investments. These types of annuities provide fixed payments over time, and they are generally less flexible than Medicaid compliant annuities. They may be counted as assets and not as income, which will affect the qualification for Title 19.