Medicaid Compliant Annuities

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 Long-term care can drain savings fast. In the right situation, a properly structured Medicaid-compliant annuity can convert certain assets into an allowable income stream and support Medicaid long-term care eligibility—while staying within the rules and preserving resources for a spouse or family priorities. We help families in Ohio, Pennsylvania, and West Virginia implement the annuity portion of a Medicaid plan in coordination with elder law counsel. This is educational, not legal advice, and results depend on your state’s rules and your exact facts 

 In Medicaid planning, “MCA” typically refers to a specific type of immediate annuity used during long-term care eligibility planning. The structure matters. When an annuity doesn’t meet required standards, states may treat it as a transfer for less than fair market value, which can create a penalty period (delay) for Medicaid long-term care coverage. Federal law ties Medicaid applications/recertifications to disclosure and state remainder-beneficiary interests, and each state implements the details through policy and rules. 

 MCAs are most commonly considered in time-sensitive situations—when someone is entering care or already in care and needs a lawful path to eligibility. Typical scenarios include: (1) Married couples where one spouse needs long-term care and the other remains at home, (2) Single / widowed / divorced individuals who are above the asset limit, and (3) families who are “too wealthy to qualify” but “not wealthy enough” to privately pay for years. The right answer depends on timing, income, resources, and state rules. 

 While details vary by state, Medicaid agencies commonly look for these features in an annuity used in long-term care Medicaid planning: (1) disclosure of annuity interests, (2) proper state remainder-beneficiary positioning, (3) contract is irrevocable and non-assignable, (4) actuarially sound term, and (5) equal payments with no deferral and no balloon payments. If one of these pieces is wrong, the annuity can be treated as a disqualifying transfer or countable resource depending on state policy. 

 We’re the implementation and documentation engine — working alongside your attorney (or helping you find one). 

• Gather the facts that drive compliance: marital status, care setting, timeline, assets/income, beneficiary goals
   
• Coordinate with counsel on the strategy
   
• Help select and structure annuity options consistent with the state’s compliance framework
   
• Ensure beneficiary language aligns with state remainder beneficiary requirements
   
• Produce a clean “case file” packet for the Medicaid application team (contract, payout schedule, ownership/annuitant/beneficiary details, verification items)

• Provide legal advice
   
• Tell you to hide assets or misstate information
   
• Replace your elder law attorney