The Medicaid Compliant Annuity is available in 48 states and the District of Columbia. The SPIA is irrevocable, non-assignable, and typically must name the state Medicaid agency as beneficiary. It has zero cash value and is considered income only. An MCA can be funded with either non-qualified or tax-qualified funds. The minimum investment amount is $5,000, and the minimum term length available is two months, in most states.
When it comes to choosing the product and carrier that is best for your client, we’ve got you covered. We work with multiple dependable insurance carriers to supply you with the best products to help your client gain eligibility for benefits, including three exclusive carriers and four companies with an A.M. Best rating of A- or higher. Our carriers also offer terms as low as two months with products available in 49 states and the District of Columbia. And they work as hard as we do to help your client become eligible for benefits.
Commissions for the writing agent are available on annuities starting at 24 months. Commissions vary by insurance carrier as well. For specific information regarding the commissions available to you, please contact our office directly. Beyond commissions, we also make it easy to charge a processing fee and ensure you get paid for your hard work on short-term annuities using our Agent Advantage program
The specific plan for using an MCA can vary greatly depending on marital status, state of residence, and other factors. In cases involving a married couple, the MCA can be purchased by either the community spouse or institutionalized spouse. Either way, the institutionalized spouse gains immediate Medicaid eligibility following the purchase of the annuity. A single person, on the other hand, may consider the Gift/MCA Plan or Standalone Plan to accelerate eligibility by creating a wealth transfer to their heirs.
To qualify for Medicaid, the applicant must be 65 years of age or older or disabled. They must also be a U.S. citizen or qualified alien. Since the Medicaid program is administered at the state level, states have their own residency requirements. Most importantly, the applicant must be residing in a Medicaid-approved facility – typically a skilled nursing home. Some states may have waiver programs that extend benefits to include assisted living facilities or at-home care.
Having too many countable assets is the primary reason most people don’t qualify for Medicaid. In most states, a single person or institutionalized spouse can typically keep $2,000 as their Individual Resource Allowance. The Community Spouse Resource Allowance varies by state. The Medicaid asset restrictions often require applicants to spend down thousands of dollars. Purchasing a Medicaid Compliant Annuity allows them to accomplish this in a quick and efficient way.