Annuity Medicaid Benefits

1. Medicaid is a state-operated, federal-and-state-funded health insurance program for qualifying low-income individuals, including the elderly and disabled, pregnant women, and children. In some states, Medicaid also covers women with cervical or breast cancer, individuals with HIV/AIDS, refugees and other at-risk groups.

Dual Eligibility

1. Individuals with both Medicare and Medicaid may qualify for Qualified Medicare Beneficiary (QMB) or related programs. These programs offer recipients the benefit of paying their Medicare co-payments, co-insurance, deductibles and other out-of-pocket costs related to Medicare.

Dental Benefits

1. The Centers for Medicare and Medicaid services mandates that all state Medicaid programs must provide dental services to individuals under age 21. These programs must cover regular exams, X-rays, restoration of teeth and other essential services. States have the option to choose what level of dental coverage, if any, to provide to individuals 21 and over. Coverage of orthodontic braces varies among states.

Prescription Drugs

1. Medicaid offers coverage for most prescription drugs. However, if pill quantity or dosage limits are exceeded, a prior authorization will be required and the claim for coverage may be denied.

Mental Health

1. Medicaid provides comprehensive coverage for the mentally ill, including psychotropic medication management, individual, group and family therapy, case management, partial hospitalization services, inpatient and residential mental health and addictions treatment.

Elderly

1. Medicaid covers the cost of long-term care at nursing facilities, hospice care, in-home health services and other medical services for the elderly.

Medical Transportation

1. Emergency medical transportation is covered under all Medicaid programs. Non-emergency medical transportation coverage varies among states. Contact your local or state Medicaid office to determine the exact coverage.

General Medical Care

1. Medicaid provides coverage for a variety of inpatient and outpatient medical services, including annual checkups, services provided by specialists, physical therapy and more. Consult with your state’s Medicaid program to obtain a more comprehensive listing of covered services.

Annuities

  Annuities are private insurance contracts that guarantee an income to the insured. The insured deposits a lump sum of money, over time or all at once, into the annuity. In exchange, the insurance company promises to pay the insured a steady income to the insured for a set period of time or for the life of the individual. However, if you need long-term care, Medicaid rules mandate that you spend down your assets. This is where owning an annuity could be beneficial for your beneficiaries.

Flexibility

  Your annuity can be a deferred annuity until you need to annuitize the contract. Annuitization makes the deferred annuity an irrevocable contract that cannot be taken away from you. This can be beneficial when you need to enter a nursing home and want to qualify for Medicaid but do not want to spend all of your savings.

Change of Ownership

  Annuities are private insurance contracts and allow you to change ownership of the contract. Due to laws concerning Medicaid qualification, you would need to change ownership of the contract at least five years prior to your entering a nursing home. Medicaid will look back over a period of five years to determine what assets to include in your total savings and income. This, in turn, will determine your eligibility for Medicaid funds.

Preservation of Assets

  By using an annuity, you can preserve your savings for your beneficiaries. This is done by annuitizing the contract. During the time that you are alive, the nursing home will receive the monthly payments from your annuity; but after you pass away, your beneficiaries will receive the remainder of the annuity.