As part of an effort to close perceived loopholes in Medicaid law, Congress is considering making it harder to qualify for Medicaid if a community spouse has an annuity. The proposed bill aims to prevent married couples from using assets to purchase an annuity for the community spouse, so that the institutionalized spouse can apply for Medicaid. The bill would count half of the income from a community spouse’s annuity as income available to the institutionalized spouse for purposes of Medicaid eligibility. The House Energy and Commerce Committee held a hearing on February 1, 2017, to consider the changes. Savings from the legislation would be used to reduce waiting lists for home health care waivers. Please stand by for more information as this legislative issue continues to develop.
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