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

ANNUITY RULES

According to the Nebraska Department of Health and Human Services, annual Letter 12-2008, released January 19, 2008:

1. An annuity transaction after February 8, 2006 is treated as a disposal of an asset for less than fair market value unless the State of Nebraska is named as the remainder beneficiary in the first position for at least the total amount of Medicaid expenditures paid, or is named as the remainder beneficiary in the second position after the community spouse and/or minor or disabled child. An annuity is also 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. This provision also applies to a community spouse.

DIVESTMENT PENALTY PERIOD CALCULATIONS

According to the Manual Letter #77-2011 § 469-000-315 of the AABD Manual, the allowable resource level of $4,000 is deducted from the prior gift amount before calculating the resulting divestment penalty period.

Example: Mr. Smith applies for Medicaid on 8/20/10.  He has been in a nursing home since 6/06.  On 3/15/09 he gave $30,000 to his son.  The transfer is within the 60-month period prior to the date of his Medicaid application and the penalty begins with the date of application which is 8/20/10.

$30,000 amount of transfer
–    4,000 allowable resource level
$26,000 ÷ $4,200 current private pay rate = 6.19-month penalty period

For more information please visit the Nebraska Department of Health and Human Services website.

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