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

ANNUITY RULES

According to the Mississippi Division of Medicaid (“DOM”) Eligibility Policy and Procedures Manual § 304.01.04B:

1. An annuity must name DOM 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 minor or disabled child, DOM may be named in the next position after those individuals.
2. An annuity purchased by or on behalf of an annuitant who has applied for medical assistance with respect to nursing facility or other long-term care services will not be treated as a transfer of assets for less than fair market value if the annuity meets the following conditions:

a. The annuity is considered either:

i. An individual retirement annuity (according to Section 408(b) of the Internal Revenue Code of 1986(IRC); or
ii. A deemed Individual Retirement Account (IRA) under a qualified employer plan (according to Section 408(q) of the IRC);

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

i. A traditional IRA (IRC Sec. 408a); or
ii. Certain accounts or trusts which are treated as traditional IRAs (IRC Sec. 408 § (c)); or
iii. A simplified retirement account (IRC Sec. 408 § (p)); or
iv. A simplified employee pension (IRC Sec. 408 § (k)); or
v. A Roth IRA (IRC Sec. 408A).

OR

c. The annuity meets all of the following requirements for every month eligibility is being considered:

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; and iv. The annuity produces a net annual return of at least 6% of its equity value.

For more information please visit the Mississippi Division of Medicaid website.

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