Back in February, the Biden administration announced their comprehensive reform package geared at nursing homes to improve the quality of care. Aside from spelling out minimum staffing requirements, the package aims to move ownership of nursing facilities toward more of a private nature. The Department of Health & Human Services worked to develop this reform package and has been met with a mixture of reactions upon announcement from aging service organizations. Then in mid-April, it reiterated the burden a $320 million decrease in funding could mean for operators and nursing homes alike. In addition to inflation, rising costs of care, and increased pressure from the White House, skilled nursing facilities were already facing unprecedented worker shortages. This reform program includes a cut of 4.6% to the patient-driven payment model and totals a loss of $320 million across the board. Reducing the number of government resources allocated toward nursing homes will only further deepen the country’s economic crisis in the short and long terms. With COVID-19 only having revealed a more severe issue within nursing homes across the nation, reduced funding and increased minimum staffing could spell disaster for countless struggling operators. Using Annuities as a Long-Term Care Solution When it comes to planning for your personal long-term care, or even the long-term care of a spouse, most individuals fail to consider the savings options available, such as annuities. However, there are a variety of annuity contracts to choose from, including qualified, non-qualified, single-premium immediate annuity, and more. The annuity you select plays a vital role in overall Medicare eligibility and your financial future.
- Qualified Annuity: Medicare won’t take a qualified annuity’s principal balance as long as you receive the required minimum distribution (RMD).
- Non-Qualified Annuity:Â This type of annuity isn’t protected compared to the qualified annuity. When you own a non-qualified annuity, it’s like keeping cash in your bank account.
- Single-Premium Immediate Annuity:Â Because this type of annuity is immediate, the responsible insurance company is obligated to start making monthly payments to the community spouse.
How to Avoid Medicare Penalties Creating a steady income negates any asset that may prevent you or your loved one from being unable to receive Medicaid. While annuities aren’t in breach of Medicare rules in and of themselves, there are a few requirements an annuity must adhere to, which are outlined below:
- Annuities must be irrevocable
- Annuities must be non-transferable
- Annuities must be immediate
- Annuities must be bought from an insurance company
- The term of payments must be less than the life expectancy of the community spouse
- And more
Ultimately, annuities can ensure you and your spouse receive long-term care, regardless of how the government cuts the budget. By planning for the future, you and your family will be better positioned to afford care for yourself or a loved one for years to come.
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After spending many years studying information technology, specializing in web development, digital marketing, and search engine optimization (SEO), I enjoy applying my skills and experience in helping others achieve their goals online.As a marketing specialist at Credkeeper, I help people get the most out of their online reputation. Your prospects perform Internet searches for your name before they buy from you. What they see on the first page of Google outweighs almost all other marketing! What do people currently see when they search your name on the Internet?If you would like to know more about Credkeeper and what we can do for you, feel free to reach out to me!
