While the popular belief is that Medicaid, or literally, medical, aid is only for the underprivileged, that is not really the case. In Florida and many other states, even the middle class can be eligible to receive this kind of aid, subject to a ceiling on their asset value. This is where Medicaid Annuities come in. Medicaid Annuities are basically ways to move your countable assets out of your bank account so that you become eligible for Medicaid. The alternative would be to exhaust youth assets to the point where you become eligible for Medicaid support, but this is not an option favored by many. A well-structured annuity is exempt or treated as a non-countable asset, so it can be retained even while receiving Medicaid benefits. However, if you look a little closer, this may not really be a financially beneficial strategy for everyone.
Most annuities are non-revocable, which means that, even if you move out of the nursing home, your money stays locked in an annuity that you have no further use for. An annuity with a refund provision, on the other hand, will give back the unused amount to your heirs. In other words, an older sick person can actually transfer his assets to his heirs, assets that would have been exhausted on medical care without an annuity option. Another point to consider is that, while Medicaid authorities cannot force a person to liquidate the annuity, they can take the annuity payments to offset their own medical expenses in looking after the sick person. What’s more, if the person in question dies, the law in many states allows them to claim the total amount spent from the insurance or Annuity Company. That can mean very little benefit for the person concerned. So, while it may not be prudent to call Medicaid annuities a scam, they may not have the same advantages for everyone. Medicaid annuities have more advantages for couples or spouses than for a single person, since they help protect the spouse.
Medicaid rules vary from state to state so it is a good idea to consult an elder care attorney to get the complete picture. A lawyer can help you calculate the overall costs and benefits in your situation to help you decide the most favorable course of action. He can help you restructure the assets of the person needing nursing home care from the non-exempt to the exempt category so that they do not prevent the person from becoming eligible for Medicaid. This includes exploring options outside annuities to secure Medicaid. The right Medicaid lawyer’s support can make a huge difference in the money that you may end up spending overall, so make an informed decision. Look for attorneys that have sufficient experience in handling such cases previously. The laws are different from state to state and have many loopholes that only a seasoned lawyer from a particular state will be familiar with. For Florida Medicaid, only a lawyer practicing in Florida will be best equipped to evaluate your options
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