Most “Medi-Cal Planners” are in fact insurance agents or financial planners making large commissions selling “Medi-Cal Exempt” annuities. We are a law firm, not insurance agents. In our experience, annuities are seldom advisable. If properly drafted, they are “exempt” assets not counted by Medi-Cal. However, they are high in commission charges and low in liquidity. They have substantial penalties should you need the money, and will generate a stream of income that must be turned over to the nursing home as “share of cost.” Upon the death of the Medi-Cal beneficiary, the State of California may recover for the benefits paid against any annuity remainder. There are many strategies superior to annuities, but don’t expect to hear about them from people who make their living selling annuities! An elder law attorney familiar with Medi-Cal planning can do much better for you…whether our office or another.
We suggest you look for a Medi-Cal planning firm that affirms they are members of the National Academy of Elder Law Attorneys (NAELA). An elder law attorney will charge you only for their time, and will not be profiting from selling you a poor product.