The cost of Medicaid annuities.

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

Research output: Contribution to journalArticle

Abstract

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 dollars, which represented a small proportion of Medicaid's almost 50 billion dollars cost for nursing home care.

Original languageEnglish (US)
Pages (from-to)444-451
Number of pages8
JournalHealth affairs (Project Hope)
Volume25
Issue number2
DOIs
StatePublished - Mar 2006
Externally publishedYes

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Levy, R. A., Nyman, J. A., Gabay, M., Riley, W., & Feldman, R. (2006). The cost of Medicaid annuities. Health affairs (Project Hope), 25(2), 444-451. https://doi.org/10.1377/hlthaff.25.2.444