Possible Changes to Medicaid Law and Annuities Income
This would be a game changer. Rep. Markwayne Mullin (R-Okla.) introduced a bill to amend the section of the Medicaid law dealing with the treatment of income. It would provide that if the annuity pays income solely to the community spouse (the spouse that is at home), one-half of the income will be considered available to the institutionalized spouse (the spouse in the nursing home). It would provide that if the annuity pays income to both the institutionalized spouse and the community spouse, one-half of the community spouse’s income would also be considered available to the institutionalized spouse. If the annuity pays income to the community spouse and another person, then one-half of the community spouse’s portion will also be considered available to the institutionalized spouse.
This is very different than current Medicaid Law in which the annuity income to the community spouse IS NOT available to the institutionalized spouse. Annuities are currently used to give greater income to the community spouse. A change in the Medicaid Law will change the way we plan for the community spouse’s needs once the other spouse is in a nursing facility. (H.R. 1771 can be read here. )