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

ANNUITY RULES

According to correspondence from an associate of the Division of County Operations, all Arkansas annuities must be sent to the Office of Chief Counsel (OCC) to determine whether they are an available resource or transfer of assets. OCC considers the following DRA provisions:

a. Mandates the disclosure and treatment of annuities;
b. Mandates that the purchase of an annuity be treated as a disposal of an asset for less than fair market value unless the State is named as the remainder beneficiary in the first position for at least the total amount of Medicaid expenditures paid or is named as such a beneficiary in the second position after the community spouse and/or minor or disabled child; and
c. Mandates that an annuity shall be treated as a disposal of assets for less than fair market value unless it is irrevocable and non-assignable actuarially sound, and provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments.

To determined actuarial soundness the life expectancy tables are published by the Office of the Chief Actuary of the Social Security Administration.

ANNUITY DECISION

• Jackson V. Selig

To learn more, visit the Arkansas Department of Human Services.

 

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