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Medicaid-Compliant Annuity (MCA)

A powerful spend-down tool that can accelerate Medicaid eligibility while preserving 50–100% of your excess countable assets.

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What Is a Medicaid-Compliant Annuity?

A Medicaid-Compliant Annuity (MCA) is a fixed, immediate annuity with added restrictions that let applicants meet Medicaid's asset criteria by reducing their countable assets.

Instead of spending those same assets on long-term care, an MCA converts your excess countable assets into a monthly income stream. The purchase does not create a transfer penalty and is not considered an asset — and it may preserve anywhere from 50–100% of your excess countable assets.

Key Benefits

Preserves Your Assets

May preserve 50–100% of your excess countable assets.

No Transfer Penalty

Purchasing an MCA does not create a Medicaid transfer penalty.

Not a Countable Asset

The annuity is not counted as an asset for Medicaid eligibility.

Accelerates Eligibility

Converts excess assets into income to speed up qualification.

An MCA Must Meet 5 Requirements

1

Irrevocable

The contract cannot be revoked, and the parties to it cannot be altered.

2

Non-Assignable

The contract cannot be assigned to another party or sold on the secondary market.

3

Actuarially Sound

The term must be fixed and equal to or shorter than the owner's Medicaid life expectancy (per SSA or state tables).

4

Equal Monthly Payments

Payments must be equal and monthly, with no deferral or balloon payments.

5

State as Beneficiary

In most cases the state Medicaid agency must be named primary death beneficiary, up to the benefits paid. Exceptions may apply for a spouse or a minor/disabled child.

Who Should Consider an MCA?

  • You have too many countable assets to qualify for Medicaid.
  • You are privately paying for nursing home care, expect to need it long-term, and want to preserve excess assets.
  • You have been receiving home health or assisted living and now expect to need nursing home care, and want to accelerate eligibility.
  • You have exhausted Medicare or long-term care insurance benefits.

Get a Free MCA Proposal

Our team provides a comprehensive proposal outlining the plan and its economic benefits — completely complimentary. Contact us to get started.