Alert
Close

Take AARP’s Smart Driver course and you could save money on your car insurance. Learn more

Highlights

Open
AARP Real Possibilities

 

FREE FUN!

AARP Games - Play Now!

Contests and
Sweeps

Safe Driving in 2014 Sweepstakes

Learn how AARP Driver Safety can help you stay safe—and enter for a chance to win $1,000. See official rules. 

AARP Auto Buying Program

MOST POPULAR

Viewed

Hear Ye! Hear Ye! The Verdict: Medicaid Battle

Until 1988, the Court of Appeals noted in its 2009 ruling, a married individual in a nursing home was essentially required to “spend down” all of the family assets before becoming eligible for Medicaid. In 1988, the Medicare Catastrophic Coverage Act made changes that were meant to prevent the impoverishment of one spouse when the other enters a nursing home.

The court also pointed to federal law signed in 2006 regarding annuities under the Medicaid program. Once a couple has purchased an irrevocable annuity, the court said, neither spouse owns the funds used for the purchase. That is why the funds are not a resource that can be counted for the institutionalized spouse’s care.

A couple can convert resources through an appropriate annuity, such as Susan bought, the court said. Warren Vieth was eligible for Medicaid.

The Vieths’ attorney, William Browning, said the court was sympathetic to the fact that Susan’s income was modest, even with the annuity payments. Still, as a past president of the National Academy of Elder Law Attorneys, he counsels consumers to “be cautious about the purchase of this type of annuity after their spouse has gone into a nursing home.” For one reason, it is likely to raise red flags when applying for Medicaid. And despite what salespeople may say, “there’s no such thing as a Medicaid tailored annuity,” Browning says.

Warren Vieth died in late 2008, and Susan died in June 2009. As beneficiary of their assets under Medicaid rules, the state of Ohio recouped all of the money for Warren’s care.

What do you think of the verdict? Let us know in the Community Commentary below.


Back to Article

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Downloadable mobile app from AARP® Roadside Assistance from Allstate.

AARP Credit card from Chase

Members can earn 3% cash back on purchases with the AARP® Credit Card from Chase.

Member Benefits

Join or renew today! Members receive exclusive member benefits & affect social change.