Myths and Facts Concerning Medicaid Planning for Nursing Home Care By Steven & Blake Rainey S.A.F.E. Planning, Inc. October 2002 Myth: All annuities are exempt from Medicaid spend-down requirements. Fact: Most annuities are not protected from Medicaid spend-down requirements. We, at S.A.F.E. Planning, use annuities extensively in our asset protection program because of the many benefits they provide. If you have purchased a tax-deferred annuity, you are already enjoying some of these benefits such as tax deferral, no market risk, protection from probate, good rate of return, etc. While there are hundreds of different annuity products being marketed, ninety-eight percent of them are not "Medicaid friendly". Many of them are not designed to be a Medicaid protection vehicle. Many people have purchased annuities being led to believe theirs would be protected in the event of catastrophic illness. In most cases, that is simply not true. Most of the people selling annuities do not intend to mislead their clients - they are just not knowledgeable concerning the rules and regulations for Medicaid. There are others, however, who intentionally mislead in order to induce someone to purchase their product. Sadly, there are some in the financial planning field who are more concerned about their commissions than their client's well being. Unfortunately, the end result for the client is the same - whether they bought the product from someone who unintentionally mislead them or one who willfully mislead them, the result will be they will not be able to protect their assets when facing long term care. If concerned, you should have your annuity reviewed by someone specializing in this type of planning. At S.A.F.E. Planning we never charge for a consultation. Most annuities are a very good investment vehicle for those who are retired or approaching retirement. But if being able to protect assets is important to you, you should consult with a Medicaid planning specialist. Ask your advisor/agent how long they have been doing Medicaid planning. As for references - they should be able to give you names of satisfied clients, nursing home administrators, social workers, etc. If they can't, or won't, don't trust your life's savings to that individual. Be aware that successful planning is much more involved than just purchasing the right annuity. You need someone who can guide you through the very detailed process. Even with the right annuity, failure to properly structure all of your accounts will result in a denial of benefits. At $3,000 per month, you don't want to make any mistakes. As displayed in Best of Times (formerly Senior Scene)

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