“The new Mullin draft could hurt life insurers’ annuity operations by making annuities less attractive as Medicaid “asset shielding” vehicles. But it could increase the typical size of the annuities couples use in Medicaid planning arrangements. The draft could also make private long-term care insurance policies, and life and annuity products that include long-term care benefits, more attractive, by reducing the likelihood that consumers would be able to use ordinary annuities in efforts to qualify for Medicaid nursing home benefits.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Well, it’s about time! Medicaid annuity abuse allows couples to shelter hundreds of thousands of dollars immediately before taking advantage of the program’s expensive long-term care benefits. We’ve documented this problem in numerous studies and articles, but the previous Administration had no interest in addressing it. The new Administration should push forward to discourage Medicaid annuity abuse and give Medicaid LTC benefits back to the needy.
House bill could change how Medicaid treats annuities