Medicaid Annuity Loophole Offers Middle-Class Americans Access to Long-Term Care
Middle-class Americans facing unexpected long-term care needs may find relief through a Medicaid annuity, according to financial experts. This strategy allows individuals to qualify for Medicaid by purchasing an annuity with excess savings, thereby depleting assets to meet Medicaid's eligibility requirements. The annuity provides a steady income for the spouse not requiring care, while the other spouse qualifies for Medicaid assistance. However, the annuity must name Medicaid as the beneficiary, and payments must begin immediately. The annuity is irrevocable, meaning it cannot be altered or cashed out, and interest rates are typically low. Experts advise consulting with a Medicaid attorney before purchasing such products. 
