Good Morning there,
Effective January 1, 2023, we will implement the following adjustments to the Medicaid Compliant Annuity (MCA) product line:
- Payout rates will move to 0.30% for durations between 2 and 47 months and 0.60% for durations 48 months and longer.
- Commissions for the 72-month and longer durations will receive an increase.
- The Cash Refund option (application form SPIA11) will no longer be available.
With these changes coinciding with year-end, there are a few key dates to remember for submitting Cash Refund applications.
- December 23, 2022 will be the last day to submit new business applications for the Cash Refund product. Anything submitted after this day will be issued on the standard MCA contract (AIFXB-17).
- This is the last day to submit all new business in 2022. Please note that qualified money cannot be back-dated across year-end.
- Cash Refund applications submitted with transfer paperwork will be valid for 90 days after receipt.
- Application kits for the Cash Refund product will be removed from the Agent Portal on December 23, 2022.
As the leading provider of Medicaid Compliant Annuities, we are committed to offering and servicing products that meet an important need with your clients. After reviewing marketplace and economic trends, we have determined compensation and payout crediting rates should be increased in certain duration bands, and the Cash Refund product will no longer be available for new business.
We will continue looking for ways to remain competitive while enhancing our service to our policyholders and agents.
If you have any questions regarding these changes, don't hesitate to get in touch with our Agency team at (888) 240-3351 or the Krause Agency at (866) 605-7437.
Thank you for your continued business and support.
Sincerely,
Bill Bruce
Vice President of Marketing