Medicaid and
Long-Term Care
Medicaid is the largest payer of Long-Term Care costs in the U.S. In fact, 52% of residents in skilled nursing facilities are Medicaid recipients.
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What is Medicaid and Long-Term Care?
Medicaid is the largest payer of Long-Term Care costs in the U.S. In fact, 52% of residents in skilled nursing facilities are Medicaid recipients. Over half of Medicaid expenditures for Long-Term Care were paid for by home and community based services (HCBS), which include residential care facilities.
To qualify for Medicaid, you must meet income and asset restrictions that vary by state. If you have too many assets to qualify, you may accelerate eligibility by Crisis Planning with a Medicaid Compliant Annuity (MCA).
You don't have to liquidate your hard earned wealth to benefit from Medicaid. Schedule an appointment with Alvin Lynn to learn more.
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What is Medicaid?
* Medicaid is a joint federal and state-funded health insurance program
* In a nursing home, Medicaid pays for a person's custodial care, including room and board, pharmacy, and incidentals.
* Applicants must meet specific criteria to qualify
2 Ways Are Required to Qualify:
Non-Financial and Financial Requirements
1. Non-Finanical Eligibility Requirements
-- Age 65+ or disabled
-- In a Medicaid Qualified nursing home
2a. Financial Requirements: Income
-- Income from all sources must be less than the private pay rate of the facility.
-- Includes Social Security, pension, etc.
Community Spouse
-- If the community spouse's income is below the Monthly Maintenance Needs Allowance (MMNA), they may be entitled to some of the institutionalized spouse's income.
-- No limits on the income of the community spouse.
2b. Financial Requirements: Assets
-- Applicant is allowed to keep $2,000 in countable assets in most states.
Community Spouse
-- Community Spouse is allowed to keep a separate amount knows as the Community Spouse Resource Allowance (CSRA).
-- CSRA varies from state to state, but is typically no more than $123,600.
What Qualifies as a Countable Asset?
Exempt Assets
-- Primary residence
-- One automobile
-- Personal effects and household items
-- Funeral expense trust
Countable Assets
-- Checking/Savings accounts
-- CDs, stocks, bonds
-- Additional real estate or automobiles
-- IRAs
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The #1 reason most people don't immediately qualify for Medicaid is they have too many countable assets. And you don't have to liquidate your assets and still qualify for Medicaid when your assets are in a properly structured plan - a Medicaid Compliant Annuity (MCA).
What is a Medicaid Compliant Annuity (MCA)?
A Medicaid Compliant Annuity (MCA) is a Single Premium Immediate Annuity (SPIA) that provides income to the owner and contains zero cash value.
When properly structured, this annuity functions as a spend-down tool that eliminates excess countable assets, allowing the nursing home resident to become eligible for Medicaid benefits.
This is Who Pays for LTC
2. Out of Pocket, Retirement Savings, Investments, Cash-on-Hand
3. Other Public (Medicare and VA)
4. Private Insurance
5. Other Private (Long-Term Care Insurance)
Data: Congressional Research Service
Does ANY Annuity Work?
NoA Medicaid Compliant Annuity is a Single Premium Immediate Annuity (SPIA) with added restrictions to meet the requirements of the Deficit Reduction Act of 2005 (DRA), and it is only offered by a limited number of insurance companies.
What are the Requirements of a Medicaid Compliant Annuity (MCA)?
Irrevocable
The contract cannot be revoked or altered.
Non-assignable
The contract cannot be assigned or sold to another party.
Actuarially Sound
The terms of the annuity cannot exceed an individual's Medicaid life expectancy.
Equal Payments
The contract must provide equal monthly payments with no deferral or balloon payments.
State as beneficiary
In most cases, the state Medicaid agency must be named primary death beneficiary to the extent of benefits paid on behalf of the institutionalized individual.
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An MCA Would Be a Good Choice If You or Your Loved One ...
- Is a resident of a Medicaid-approved facility;
- Is expected to remain at the facility indefinitely;
- Has exhausted all of his or her Medicare benefits;
- Is paying out-of-pocket;
- And has excess countable assets.
What You Need to Know
We provide guidance and design comprehensive Long-Term plans for each unique situation that accelerates eligibility for benefits using a Medicaid Compliant Annuity (MCA).
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Who We Are
Alvin Lynn has been providing insurance since 2013.
The Alvin Lynn Team are insurance professionals. We specialize in Medicaid Planning, Medicare Planning, Long Term Care Planning and Retirement Solutions Planning. It is our pleasure to collaborate with other trusted advisors outside of our field of expertise to customize a realistic and attainable plan for you. If your goal is to stay retired and not have to return to work because of a lack of money, then understanding and implementing a Holistic Retirement Plan is essential to your overall retirement strategy.
You have a choice to enjoy financial security regardless of market volatility. Our mission is to guide you to financial wellness, by helping you experience freedom from debt a lower tax burden, and a safe and predictable income now and in retirement.
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Farmington Hills, MI 48336
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