Liquidating assets for nursing home
To make matters even more complicated, the rules differ depending on whether the patient seeks care at home, in an assisted living facility or in a nursing home.
The following discussion of the use of immediate annuities applies only to the nursing home setting.
To qualify, however, those needing long-term care must become impoverished under Mass Health's complicated and often-changing rules.
Deferred annuities can be "annuitized," meaning they can be turned into immediate annuities.
But they can be a problem for Mass Health purposes if owned by the nursing home resident since the income stream would be payable to the nursing home instead of to the healthy spouse.
Please note that if you are receiving physical therapy and not "maintaining" your health, Medicare can cut you off and stop paying the nursing home, leaving you to pay all costs privately.
"Skilled" nursing care is really like extended hospital care, which is very different from "custodial care".If for any reason Medicare terminates your Medicare coverage, your medical insurance will probably not pay any part of your rehabilitation or skilled nursing care, leaving you to private pay the whole bill, usually 0 - 0 per day, even though your insurance was paying all of the while you were on Medicare.