Why Medicaid?

A Medicaid Compliant Annuity is designed to convert your client’s excess countable resources into income, allowing them to obtain financial assistance for long-term care through the Medicaid program.

About Medicaid

Medicaid is the largest payer of long-term care in the U.S., covering almost 50% of care costs across the country. To qualify, applicants must meet certain financial limits, be age 65 or older, blind, or disabled, and reside in a Medicaid-approved facility, like a nursing home. Once eligible, Medicaid covers room and board, pharmacy, and incidentals for long-term care.

In short, this program is designed to help individuals gain financial assistance for long-term care. Contrary to popular belief, your clients do not need to exhaust their assets to become eligible. The Medicaid Compliant Annuity allows them to preserve their savings for a spouse or the next generation while still gaining much-needed financial relief from the nursing home.

Busting Medicaid Myths

Despite what you may have heard, Medicaid can be viable planning option for your clients. Let’s explore—and dispute—some common myths surrounding the Medicaid program.

MYTH: You have to spend all your savings on care costs to qualify for Medicaid.

Although Medicaid enforces asset limits and has rules against giving money away, your clients do not have to spend their savings paying the monthly nursing home bill. Instead, they can protect what they have left by purchasing assets that are exempt from Medicaid, like a Medicaid Compliant Annuity.

MYTH: The healthy spouse’s income must be used to pay for the ill spouse’s care.

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MYTH: Medicaid is only for poor people.

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MYTH: Medicare or other health insurance plans will cover long-term care.

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MYTH: My client doesn’t need Medicaid, they can just pay out of pocket for long-term care.

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Discover More About Medicaid Compliant Annuities

Download our Medicaid quick guide to learn more about the Medicaid program, its requirements, and how it can help clients who currently need long-term care.

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