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

ANNUITY RULES

According to the Arizona Health Care Cost Containment System’s Eligibility Policy Manual, subsections 902 G Purchase of an Irrevocable Annuity :

Exception:

a. Name AHCCCS as primary beneficiary; or

b. If the owner has a spouse, disabled child or minor child, AHCCCS must be listed as beneficiary in the second position after the spouse, disabled child or minor child.

a. Was created using funds in a ROTH IRA, 408 or other employer sponsored plan; OR
b. Was purchased from a life insurance company or other commercial company that sells annuities as part of its normal course of business; AND
c. Provides equal monthly payments with no balloon, deferred or increasing or decreasing monthly payments (small differences due to changes in interest rates are allowed);
d. The annuitant is the customer or the customer’s spouse;
e. Is a “Period Certain” annuity that that will return the full principal and interest within the annuitant’s life expectancy as listed in the Period Life Table (from socialsecurity.gov); and
f. The number of months that annuity payments will be issued should be less than the number of months of the person’s life expectancy (multiply figure from the Period Life Table (from socialsecurity.gov) by 12).

ANNUITY DECISION

• Hutcherson_v_AHCCCS

To learn more, view the AHCCCS Medical Assistance Manual 

Click here for Arizona Desk Reference PDF

Print