Michigan uses its own life expectancy table.


According to the Michigan Department of Human Services Bridges Eligibility Manual (BEM), section 401 entitled Trusts – MA:

1. Converting countable resources to income through the purchase of an annuity or the amendment of an existing annuity on or after 09/01/05, is considered a transfer for less than fair market value unless the annuity:

a. Is commercially issued by a company licensed in the United States and issued by a licensed producer, and
b. Is irrevocable, and
c. Is purchased by an applicant or recipient for Medicaid or their spouse and solely for the benefit of the applicant or recipient or their spouse, and
d. Is actuarially sound and returns the principal and interest within the annuitant’s life expectancy, and
e. Payments must be in substantially equal monthly payments and continue for the term of the payout (no balloon or lump sum payments).

2. In addition to the above conditions an annuity purchase or amended on or after February 8, 2006 must name the state of Michigan as the remainder beneficiary, or as the second remainder beneficiary after the community spouse or minor or disabled child, for an amount at least equal to the amount of the Medicaid benefits provided.

For more information please visit Michigan’s Department of Human Services website.

Michigan Desk Reference

Divestment Penalty Divisor $8,282.00
Individual Resource Allowance $2,000.00
Monthly Personal Needs Allowance $60.00
Minimum Community Spouse Resource Allowance $23,844.00
Maximum Community Spouse Resource Allowance $119,220.00
Minimum Monthly Maintenance Needs Allowance $2,003.00
Maximum Monthly Maintenance Needs Allowance $2,981.00
Shelter Standard $601.00
Standard Utility Allowance $575.00
Resource Allowance for a Couple (Husband and Wife both reside in a facility) $3,000.00
Last Updated July 1, 2016