Louisiana uses its own life expectancy table.

ANNUITY RULES

According to the Louisiana Department of Health and Hospitals Medicaid Eligibility Manual, section I-1674.5 entitled Annuities:

1. An annuity must name the State as the remainder beneficiary in the first position for the total amount of Medicaid assistance paid on behalf of the institutionalized individual unless there is a community spouse and/or a minor or disabled child. If there is a community spouse and/or a minor or disabled child, the State may be named in the next position after those individuals.
2. The following types of annuities are not treated as a transfer of assets if the annuity meets the following conditions:

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 form one of the following:

i. A traditional IRA; or
ii. Certain accounts or trusts which are treated as IRAs
iii. A simplified retirement account; or
iv. A simplified employee pension; or

c. The annuity meets all of the following requirements:

i. The annuity is irrevocable and non-assignable; and
ii. The annuity is actuarially sound; and
iii. The annuity provides payments in approximately equal amounts, with no deferred or balloon payments.

The requirements listed in (2) above do not apply to annuities purchased by a community spouse. According to the Medicaid Program Manager 2 of the Louisiana Department of Health and Hospitals, an annuity owned by a community spouse does not need to be irrevocable, non-assignable, provide equal monthly payments, or be actuarially sound. It only must designate the state as a beneficiary and be disclosed on a Medicaid application.

For more information please visit Louisiana’s Department of Health and Hospitals website.

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