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 common misconceptions, Medicaid can be a powerful planning tool for your clients, providing essential relief from the high cost of long-term care. Many believe it’s only for those with no assets or requires a complete spend-down, but that’s not the case. With the right strategies, clients can preserve what they have left while still qualifying for financial assistance. Let’s break down and debunk some of the biggest myths about Medicaid.

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.

For married couples, Medicaid has spousal impoverishment standards in place to ensure the healthy spouse isn’t left destitute when the ill spouse begins receiving benefits. These include a larger asset allowance for the healthy spouse and a potential shift in income from the ill spouse. 

MYTH: Medicaid is only for poor people.

Medicaid provides crucial financial assistance to a broad range of individuals, including seniors, people with disabilities, and those needing long-term care. It acts as a vital safety net that can help protect assets and ensure access to necessary healthcare services to support anyone—not just the impoverished.  

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

Most health insurance plans only cover hospital, doctor, and prescription costs related to illness or injury. Medicare only provides long-term care coverage in specific situations for rehabilitative purposes and for up to 100 days. The only type of insurance that covers long-term care is long-term care insurance. 

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

Nursing homes can cost upwards of $9,000 per month, amounting to an annual cost of over $100,000. While some high-net-worth individuals may be able to cover these costs out of their own pocket, most risk depleting their entire life savings within just a few years. Medicaid planning offers your clients a lifeline when they have no other options. 

MCA Quick Guide

Discover More About Medicaid Compliant Annuities

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

"*" indicates required fields

Name*

Discover how we work together to grow your business.

Book a Call