Medicaid

This is the federal term for a government health insurance system. The system administered in Missouri is called MO HealthNet. This is not the same benefit as Medicare. Medicare is an entitlement for seniors and disabled persons. Medicaid, is a health system for low asset and low income persons.

Medicaid Compliant Annuity

Is a single premium immediate annuity (SPIA) that has no cash value and provides equal monthly income payments to the owner. Properly structured, this annuity functions as a spend-down tool that eliminates excess countable assets, allowing the nursing home resident to become eligible for Medicaid benefits. There are specific requirement that must be present in the annuity contract in order for it to comply with Medicaid laws, thus qualifying the annuity not be considered an asset, but counted as income.

Medicare

This refers to the federal health insurance program for those over 64 years of age and certain disabled persons. This is an entitlement program that pays for certain health care expenses.

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