Is A Medicaid Annuity Right For You?

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Sechler Law Firm, LLC

For more information about the author, click to view their website: Sechler Law Firm LLC

Posted on

Jun 01, 2024

Book/Edition

Pennsylvania - Greater Pittsburgh Area

Are you concerned about going broke in a nursing home?  If your parent or spouse is in a skilled nursing facility or will be soon, you should know about Medicaid Compliant Annuities.  According to the Pennsylvania Department of Human Services, the average cost of a skilled nursing facility is approaching $13,000 per month.

Obviously, most families have trouble paying this bill.  For many, the only other payment source is Medicaid, which requires you to essentially go broke prior to eligibility.

This is the fundamental problem with the way we provide care to our seniors.  Nursing homes provide a valuable service, but unfortunately the broken government rulebook requires you to spend the majority of your money before they will help pay.  What a shame… making seniors go broke because of dementia or some other ailment.

Fortunately for you, the state is bound by their own rules and those rules provide you with opportunities, if you know where to find them. This is where a Medicaid Compliant Annuity can help.  A Medicaid Compliant Annuity converts money that Medicaid has to count as an available resources into an income stream that a healthy spouse can keep.

As an example, in a married case with Dad in a nursing home, Mom is only allowed to keep half of the “available” savings, subject to a maximum of about $154,000.  So, if the family has a total of $200,000 in countable savings, Mom will only be able to keep $100,000 and risks losing the other $100,000.

Rather than losing $100,000, Mom may decide to work with a Certified Elder Law Attorney to explore her options.  One option she may have is to purchase a Medicaid Compliant Annuity. This annuity converts the extra $100,000 into an income stream which she is allowed to keep.  Mom gets to keep the money and Dad’s bill is paid by Medicaid!  This can be a great solution for you, if you have a sick family member.

***Please do not try this at home. Medicaid is complicated and only a qualified Elder Law Attorney can determine if this strategy is right for you*** 

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Local Services By This Author

Sechler Law Firm, LLC

Elder Law 20206 State Rte 19 Ste 300, Cranberry Township, Pennsylvania, 16066

At Sechler Law Firm, LLC, our mission is to help families make great plans. A great estate plan is more than just a set of documents. It is a comprehensive and well thought out written strategy on how to deal with lifes unfortunate twists and turns. Our process first provides you with the education necessary to make informed decisions with regard to your planning. Then we put the proper documents and legal framework in place to respond to lifes unfortunate changes.Our Estate Planning law office is headquartered in Cranberry, PA. From this office, we happily serve the residents of Cranberry, Mars, Wexford, Pittsburgh, Butler and the residents of surrounding communities. As one of the regions only Certified Elder Law Attorneys, Tim Sechler and his team often assist families from across Western Pennsylvania.We understand that the pursuit of health, wealth and happiness is the goal of most families. We want you to be able to pursue these goals, or whatever goals you may have, knowing that you have a back up plan if life throws you a curveball like a death, disability or nursing home need. With education as our foundation, we will work with you to make decisions to Shield What Matters Most to you.Practice AreasEstate PlanningCustomized planning doesnt have to be difficult for you. We strive to make the process easy. The first step is to identify your concerns so that we can make suggestions regarding your plan.Elder Law Crisis PlanningA significant percentage of our practice is dedicated to helping families navigate the long term care maze. We help with Asset Protection and eligibility for Medicaid and Veterans Benefits.Trust And Estate AdministrationIf you have lost a loved one, we can help you take the necessary steps to help handle their affairs.Tims estate planning practice is focused on guiding clients through the complicated maze of balancing transfer strategies, wealth preservation, and family values in the planning process.Tim is a Combat Veteran, having served in Afghanistan as a member of the West Virginia Air National Guard. Prior to leaving the military, Tim had attained the rank of Staff Sergeant. His experiences in the military have led him to thoroughly enjoy working with Veterans and their families.Tim received his law degree from Duquesne University School of Law, and his Master of Business Administration from the Duquesne University Donahue Graduate School of Business. He received his Bachelor of Science in Business Administration from West Virginia University, majoring in Finance. Tim is licensed to practice Law in Pennsylvania and West Virginia.Recently, Tim has been seen frequently as a guest on KDKAs Pittsburgh Today Live, and has been quoted in several local print publications. For the last several years, he has been honored to be chosen as a Super Lawyers Rising Star, an award given to less than 2.5% of Tims peers. Tim enjoys educating the public about Elder Law and Estate Planning. He has spoken to thousands of people regarding estate planning and has averaged more than 50 speaking events per year.Tim became a Certified Elder Law Attorney* in 2017. A CELA is more than just an attorney who specializes in the field of elder law. CELAs are committed, through certification, to maintaining and improving their proficiency with continual practice and continuing legal education. Becoming certified in elder law validates a lawyers specialty to handle issues that affect senior citizens.Tim and his wife, Robyn, are raising three beautiful children in their home in Mars, PA.*Certified as an Elder Law Attorney by the National Elder Law Foundation.