Annuity Income And Medicaid

When an asset is turned into community spouse income the asset disappears and no longer interferes with medicaid eligibility.

Annuity income and medicaid. The medicaid friendly annuity s income payout must be based on the life expectancy table equivalent to the social security life expectancy tables used for medicaid. Medicaid compliant annuity requirements. Return all premiums to the client by the end of the client s life expectancy. Remember annuities lower an applicant s countable assets by converting them into a stream of income.

Purchasing an annuity converts an asset into a stream of monthly income for the community spouse and the community spouse s income is not counted toward medicaid eligibility. The income limit is relevant to the discussion of annuities because the purchase of an annuity by a single medicaid applicant can put him her over medicaid s income limit.