Alabama uses the life expectancy tables published by the Office of the Actuary of the Social Security Administration, here.


According to the Alabama Medicaid Agency Medicaid manual, Rule No. 560-X-25-.09 entitled Transfer of Assets Affecting Eligibility:

1. With respect to a transfer of assets on or after February 8, 2006, the term “assets” includes an annuity purchased by or on behalf of the individual and will be treated as a disposal of assets for less than fair market value unless:

(i) the annuity is —

(I) an annuity described in subsection (b) or (q) of section 408 of the Internal Revenue Code of 1986; or
(II) purchased with proceeds from —

(aa) an account or trust described in subsection (a), (c), (p) of section 408 of such Code;
(bb) a simplified employee pension (within the meaning of section 408(k) of such Code); or
(cc) a Roth IRA described in section 408A of such Code; or

(ii) the annuity —

(I) is irrevocable and non-assignable;
(II) is actuarially sound (as determined in accordance with actuarial publications of the Office of the Chief Actuary of the Social Security Administration); and
(III) provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments made; and,

(iii) in the annuity —

(I) the State is named as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the annuitant; or
(II) the State is named as such beneficiary in the second position after the community spouse or minor or disabled child and is named in the first position if such spouse or a representative of such child disposes of any such remainder for less than fair market value.

To learn more, visit the Alabama Medicaid Agency.

Click here for Alabama Desk Reference PDF

Alabama Desk Reference

Divestment Penalty Divisor $5,800.00
Income Cap $2,199.00
Individual Resource Allowance $2,000.00
Monthly Personal Needs Allowance $30.00
Minimum Community Spouse Resource Allowance $25,000.00
Maximum Community Spouse Resource Allowance $119,220.00
Monthly Maintenance Needs Allowance $1,967.00
Resource Allowance for a Couple (Husband and Wife both reside in a facility) $3,000.00 – First Month $2,000.00 – Thereafter
Last Updated January 7, 2016