Medicaid compliant annuities

[MAnnuity]

Hello,

I've been out of the loop for a bit. Are any carriers currently offering Medicaid compliant annuities - specifically for life expectancy < 5 years? If so, do the carriers calculate life expectancy for these cases or is the onus on the broker/attorney working on the case to determine based on LE tables?

 

[Allen Trent]

Hello,

I've been out of the loop for a bit. Are any carriers currently offering Medicaid compliant annuities - specifically for life expectancy < 5 years? If so, do the carriers calculate life expectancy for these cases or is the onus on the broker/attorney working on the case to determine based on LE tables?

legally no such thing can be marketed as such.

however, Medicaid is the entity that determines in each state if a given SPIA complies with their life expectancy. The SPIA must be a fixed period of years that is no longer than the Medicaid life expectancy table, not the carrier life expectancy table. For instance, here is the Michigan Medicaid parameters for 2022 & pages 19-23 at the end have the life expectancy tables. MA DIVESTMENT (michigan.gov)

Would have to be an 88+ year old male or 91+ female to be in need of a less than 5 year fixed period SPIA. Some carriers did offer less than 5 year in the past, but got out of it during low interest rate marketplace. Between compliance, regulations & no place to invest money for such a short time along with paying commissions, many carriers dropped the less than 5 years. It is possible I guess that some may consider it on an exception case by case basis for new money. If the persons money is already in an existing annuity, it is possible the existing carrier may allow less than 5 years in the contractual internal payout tables of older policies

Best to have an Elder Care attorney handle the annuity determination along with all the other planning they may do to protect assets for the client with as many

 

[MAnnuity]

Thank you. Yes I know even 5 or so years ago it was becoming incredibly difficult to identify such a small niche product so I figured since then the market had all but dissolved/disappeared, but I thought I'd check.

 

[Life Hawk]

Best to have an Elder Care attorney handle the annuity determination along with all the other planning they may do to protect assets for the client with as many

This is why having children that care and can be trusted is so important. IMHO

 

[LostDollar]

Hello,

I've been out of the loop for a bit. Are any carriers currently offering Medicaid compliant annuities - specifically for life expectancy < 5 years? If so, do the carriers calculate life expectancy for these cases or is the onus on the broker/attorney working on the case to determine based on LE tables?

Caveat, I am not an agent.

I have no idea if this carrier meets your specific technical requirements, but I believe I saw them mentioned once here for Medicaid annuities.

[EXTERNAL LINK] - Medicaid Compliant Annuities | ELCO Mutual

 

[CALTCAgent]

The problem for a single person with the payment is that it counts as income.

 

[Allen Trent]

The problem for a single person with the payment is that it counts as income.

and many states also require that Medicaid be the beneficiary of the SPIA if the person dies before all fixed period SPIA payments received

 

[walthamny]

When I run into this situations, I use Krause Agency The service is good. There is not much money to be made in these cases directly but you can make a client out of all the children and others in the family. Refer down to make money

 

[Steve Lybrand]

I believe ELCO is a contracting agent for Krause, meaning ELCO's MCA go through ELCO to Krause. While this opportunity is likely resolved, if you are referring to an Elder law attorney, be sure to let them know you will be doing the annuity or they will likely do it.

If the client does not have a spouse, they can give 1/2 of the assets to someone and buy an annuity with the remaining 1/2 to pay the Medicaid penalty period. The Elder law attorney can educate you on it.

 

[CALTCAgent]

If the client does not have a spouse, they can give 1/2 of the assets to someone

Assuming they are still capable of making that decision.