Kansas uses its own life expectancy table.

ANNUITY RULES

According to the Kansas Department of Children and Family Services KEESM, section 5722 entitled Transfers of Specific Resources:

1. Annuities purchase on or after February 8, 2006 – The annuity is considered uncompensated unless Kansas Medicaid is named as the first remainder beneficiary of the annuity for the total amount of medical assistance paid by Medicaid. If the LTC individual has a spouse, minor child or disabled child, Kansas Medicaid must be named as the next remainder beneficiary after these individuals. Failure to name Kansas Medicaid as the remainder beneficiary in the correct position results in an uncompensated transfer.
2. In addition to naming Kansas Medicaid as remainder beneficiary, any annuity purchased by or on behalf of the LTC individual only, not the community spouse, is considered uncompensated unless one of the following conditions are met:

a. The annuity is considered either:

i. An individual retirement annuity, or
ii. A deemed Individual Retirement Account under a qualified employer plan, OR

b. The annuity is purchased with proceeds from one of the following:

i. A traditional IRA
ii. An account or trust which is treated as a traditional IRA;
iii. A simplified retirement account;
iv. A simplified employee pension; or
v. A Roth IRA, OR

c. The annuity meets all of the following requirements:

i. The annuity is irrevocable and non-assignable;
ii. The annuity is actuarially sound, in that it is expected to return full principle and interest within the annuitant’s life expectancy; and
iii. The annuity provides payment and is approximately equal amounts, with no deferred or balloon payments.

For more information please visit the Kansas Department for Children and Families website.

Print