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Investors Consider Fire Sale To Qualify For Medicaid: Report

By Gerry W. Beyer

IRSA recent study by Jackson National Life Insurance found that over 60% of wealthy investors, including those with over $1 million in assets, are considering selling off their assets to qualify for Medicaid to cover long-term healthcare costs in retirement. Medicaid, a government program for low-income individuals, has strict asset and income limits, requiring individuals to impoverish themselves to qualify. Experts warn that this approach could diminish retirees’ quality of life and leave them with inadequate healthcare coverage.

The study also revealed a widespread lack of preparedness for long-term care expenses, with many underestimating both the likelihood of needing care (70% of individuals over 65 will require it) and the actual costs. Financial advisors are encouraged to help clients plan for healthcare expenses through Medicare education, long-term care planning, and structured financial strategies to preserve assets and ensure sufficient coverage without extreme measures.

For more information see Edward Hayes “Investors Consider Fire Sale To Qualify For Medicaid: Report” Financial Advisor, January 30, 2025. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.