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

ANNUITY RULES

According to Oklahoma Health Care Authority, 317:35-5-41.8 entitled Annuities:

1. The entire amount used to purchase an annuity on or after February 8, 2006, is treated as assets transferred for less than fair market value unless the annuity meets one of the conditions described in (a) through (c) of this paragraph.

a. The annuity is an annuity described in subsection (b) or (q) of Section 408 of the United States Internal Revenue Code of 1986.
b. The annuity is purchased with proceeds from:

i. An account or trust described in subsection (a), (c), or (p) of Section 408 of the United States Internal Revenue Code of 1986;
ii. a simplified employee pension as defined in Section 408 (k) of the United States Internal Revenue Code of 1986; or
iii. A Roth IRA described in Section 408A of the United States Internal Revenue Code of 1986.

c. The annuity:

i. is irrevocable and non-assignable
ii. is actuarially sound as determined in accordance with actuarial publications of the Office of the Chief Actuary of the United States Social Security Administration; and
iii. provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments made.

2. In addition, the entire amount used to purchase an annuity on or after February 8, 2006, is treated as a transfer of assets unless the Oklahoma Health Care Authority is named as the remainder beneficiary either:

a. In the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual; or
b. In the second position after the community spouse, child under 21 years of age, or disabled child and in the first position if the spouse or a representative of the child disposes of any of the remainder for less than fair market value.

ANNUITY DECISION

• Morris v. OK DHS (July 2012)
• Morris v. OK DHS (Sept. 2010)

PROMISSORY NOTE DECISION

• Lemmons v. Ed Lake, Director of Oklahoma Department of Human Services, et al.
• Gragert v. Ed Lake, Director of Oklahoma Department of Human Services, et al.

Visit the Medical Assistance for Adults and Children Policy Manual to learn more.

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