Disclaimer: Since Medicaid rules and insurance regulations are updated regularly, past blog posts may not present the most accurate or relevant data. Please contact our office for up-to-date information, strategies, and guidance.
Most annuities allow the owner to change parties related to the contract, the owner, and beneficiary. This allows companies such as J.G. Wentworth to purchase the annuities on the secondary market for cash. In order to qualify for Medicaid, an individual typically must have $2,000.00 or less in assets. Thus, if they have an annuity that is not DRA compliant, the annuity will have value above the $2,000 limit which will result in preventing the person from being able to qualify for Medicaid.
If you encounter this situation, note that The Krause Agency offers complimentary annuity valuation service. At no charge, we will analyze your clients’ preexisting annuity to determine whether it is Medicaid compliant. If it is non-DRA compliant, we will perform a valuation process to determine its Fair market value and sell it on the secondary market. The entire process from valuation to change of ownership can typically be completed in as little as 1-3 weeks.
