A Pair of Medicaid Compliant Annuity Strategies For Individuals

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“When we have a couple and let’s say one spouse is in the nursing home and the other is at home, we can save almost 100% of what’s out there by doing a Medicaid Compliant Annuity plan. But when we have a person who is all alone in a nursing home generally we can save about half the funds.” – Dale Krause

On today’s episode of The Insurance Experts, I have the pleasure to have on once again, Dale Krause. As you may recall, Dale is an innovator in the strategic use of insurance solutions that complement Medicaid planning. On our last episode together, we discussed a strategy for couples where one spouse is in the nursing home.

In today’s episode, Dale and I discuss two Medicaid Compliant Annuity strategies for individuals. Of course, each state has specific spend-down rules when it comes to Medicaid eligibility to pay for nursing home care. However, there are a couple of ways to plan for Medicaid for an individual depending on how long they are expected to be receiving care.

If the individual is expected to be in a nursing home for an extended period of time, she can use a gifting strategy. The goal of the plan is to make a gift and then apply for Medicaid. She would be ineligible for a certain number of months, but at the end of the plan the gift is intact. This could result in protecting about 50% of the estate. Even if she’s in a terminal situation, it may make sense to employ a different strategy that puts her in a penalty period for Medicaid, but by doing so she can access the less expensive Medicaid rate instead of the private pay rate.

Watch the video as we discuss a case study of how the value of each of these planning strategy works.

As you can see, each situation is unique, which is why you should consult with an attorney that is qualified in this area and an insurance professional that is well-versed in the solutions.

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