Medicaid Applicant’s Irrevocable Annuity Is Available Resource Because It Could Be Moved to Another Annuity

The New Jersey Medicaid agency rules that a Medicaid applicant's irrevocable annuity is an available resource because the applicant was able to move funds from one irrevocable annuity to another irrevocable annuity. M.M. v. Division of Medical Assistance and Health Services (N.J. Dept. of Human Servs., Final Agency Decision, OAL DKT. NO. HMA 1057-2019, June 19, 2019).

M.M. received $6,141.93 a month in income from an irrevocable annuity, which provided that no change could be made in the benefit period or frequency of payment. She applied for Medicaid benefits in June 2018, but the state denied the application due to excess income. In July 2018, M.M. converted the annuity to a new annuity that paid $5,117.85 a month. M.M. reapplied for Medicaid in October 2018.

The state denied benefits again, finding that the annuity was an available resource. M.M. appealed and the administrative law judge affirmed the denial.

The Division of Medical Assistance and Health Services renders a final agency decision affirming the denial of benefits. The agency determines that because M.M. was able to move the funds to a different annuity, the funds are accessible or subject to modification at M.M.'s request.

For New Jersey ElderLawAnswers member Donald Vanarelli’s summary of the decision, click here.

For the full text of this decision, click here.

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