Market watch: The cost of medicaid annuities

Robert A. Levy, John A. Nyman, Mary Gabay, William Riley, Roger Feldman

Research output: Contribution to journalReview article


Medicaid annuities are annuities that long-term care recipients use to shelter assets, thereby qualifying them early for Medicaid eligibility. As such, these annuities have the potential to increase Medicaid costs. This study estimates the cost of annuities to the Medicaid program. From a sample of Medicaid applications in five states, we found the rate at which annuities were used and simulated their cost to Medicaid. We estimated that in 2004, Medicaid annuities cost Medicaid about $197 million, which represented a small proportion of Medicaid's almost $50 billion cost for nursing home care.

Original languageEnglish (US)
Pages (from-to)444-451
Number of pages8
JournalHealth Affairs
Issue number2
StatePublished - Mar 1 2006


ASJC Scopus subject areas

  • Health Policy

Cite this

Levy, R. A., Nyman, J. A., Gabay, M., Riley, W., & Feldman, R. (2006). Market watch: The cost of medicaid annuities. Health Affairs, 25(2), 444-451.