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This site is about "Medicaid
friendly annuities". If you are a licensed insurance agent you can also get contracted for Medicaid annuities by downloading the
agent appointment forms here.
Before President Bush signed the Deficit Reduction Act (DRA) into law on Feb. 8, 2006, the premium paid to purchase an immediate annuity was considered sheltered from Medicaid, although the monthly annuity payments would have to be spent on the institutionalized person's care, provided the annuity was set up as irrevocable and non-transferable (meaning, the insurance company had to agree not to honor the owner's request to sell the payment stream to a third party). Upon the death of the annuity owner any continuing payments would be made to the beneficiaries. On Feb. 8, 2006, DRA changed those rules. Previously, investing in an immediate-pay annuity would not delay a person's eligibility for Medicaid. Now it does - unless your state's Medicaid Administrator is designated as the beneficiary on the annuity contract. If, for example, a family member is named beneficiary, then the premium amount paid for the annuity is treated as a transfer of assets - and asset transfers made within five years of applying for Medicaid delay eligibility for Medicaid benefits.
If you are new to Medicaid annuities, please read our 15-minute tutorial beginning with Step 1: "General
Medicaid Planning Guidelines".
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