When one member of a married couple receives Medicaid while the other remains at home, they can keep a “Community Spouse Resource Allowance” comprised of the couple’s total assets excluding their house so long as its equity value does not exceed $585,000. The current CSRA is $126,420.
In order to prevent abuse of the program, an applicant may be subject to a period of ineligibility if they or their spouse transfer assets within five years of filing.
For example, if it meets certain criteria, an applicant’s spouse can purchase an immediate annuity.
This contract with an insurance company guarantees a stream of income for a fixed set of time, or for life, in exchange for an upfront sum. In order for an immediate annuity to avoid incurring a period of ineligibility for Medicaid in Maryland it must:
Immediate annuities may seem like a simple cure all to couples seeking Medicaid but who possess too many assets, there are however several things to keep in mind.
Depending on where a person lives they may still incur a penalty if they transfer assets using an immediate annuity. In addition, the requirements the contract must meet can vary from state to state.
Purchasing an annuity might not be the best option available in an individual situation. For example, transferring assets to an exempt beneficiary or exploring community Medicaid may also allow a patient’s long-term care needs to be met while maintaining their assets.
Mr. Abraham has been a member of the local legal community for more than 20 years becoming a recognized attorney for his distinguished career and accomplishments. Abraham is admitted to practice law before the state and federal courts of Maryland.