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DeNoble Financial Services

Medicaid Compliant Annuities

How do you pay for the nursing home when one of you has reached a point that it is the only alternative? You have money that was saved for retirement and meeting some “rainy day” need. At the cost of a nursing home private pay in the Houston area of about $100,000 per year, the money won’t last and you, the spouse at home, won’t have anything. You check with Medicare and find that they don’t cover long term care. What else is there. You look into Medicaid and you have assets that they want you to do what is called a Medicaid Spend Down. They will allow you to keep the home and its furnishing as well as a car, but you will have to spend the assets down to $128,640. That is the total you can have and it now has to last your entire life. It seems like you will give up quite a bit to qualify and it will take time. In the meantime, you are paying the full amount of private pay at the nursing home and watching your money disappear.

The one thing you didn’t find when you looked into Medicaid Is that they allow for money to be protected from the Medicaid Spend Down. They have approved methods of saving that money and keeping all of it in your control. This means that you, as the spouse at home (community spouse in Medicaid jargon) will have the money that was saved for retirement and not have to spend it on the nursing home. Your spouse will immediately qualify for Medicaid. This will save thousands of dollars a month. Medicaid Compliant Annuities are the tool that Medicaid allows. Rather than going to the nursing home, the money goes into a Medicaid Compliant Annuity that pays you each month. There are special rules for the Medicaid Compliant Annuity and there are only a few companies that write them. We are contracted with each of them to provide just the right product for your situation.

If you are in the Houston area- Harris County, Fort Bend County, Montgomery County, Waller County or Galveston County, give us a call. I know this is a difficult time, not one you ever really planned on and, if it did ever cross your mind, you dismissed it quickly. We will work with you to provide the best outcome possible in a situation that doesn’t have too many good outcomes. Whether your situation is simple or complex, we will take the time to understand it and provide the solution. We work with attorneys who are specialist in Medicaid Planning so that everything is exactly the way Medicaid will want to see it.