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

ANNUITY RULES

According to the Rhode Island Department of Human Service Medical Assistance Manual, section 0382.15.35 entitled Annuities:

1. To be considered a valid transfer for fair market value, an annuity must:

a. Be irrevocable and non-assignable;

b. Provide regular payments in both frequency and amount, with no deferral and no balloon payments, to or for the sole benefit of the individual; and,

c. Be actuarially sound. Scheduled payment must return at least the principal within the number of years of expected life remaining for the individual.

d. Life expectancy tables compiled from information by the Office of the Chief Actuary of the Social Security Administration for this purpose are used to determine the number of years of expected life remaining for the individual. (See Section 0382.15.35.05)

e. If an annuity is purchased or transacted on or after February 8th, 2006, WHETHER BY THE APPLICANT OR BY THEIR SPOUSE, the beneficiary clause of the annuity must provide that the beneficiary of the annuity is as follows:

1. Must, except as provided in this section, name the State of Rhode Island as the remainder beneficiary in the first position for at least the amount of medical assistance paid on behalf of the institutionalized individual.

2. If, however, the institutionalized individual has a minor or disabled child, such child may be named as the beneficiary in the first position, provided the State of Rhode Island is named as beneficiary of the annuity in the second position for at least the amount of Medical assistance paid on behalf of the institutionalized individual.

1. The community spouse may not change the beneficiary of the annuity after the death of the institutionalized spouse.

2. In the event the community spouse becomes institutionalized and applies for Medical Assistance, the beneficiary clause must be amended to additionally name the State of Rhode Island as the remainder beneficiary in the first position for at least the amount of Medical Assistance paid on behalf of such community spouse who becomes institutionalized, at the time such spouse applies for Medical Assistance for himself or herself, if the annuity was purchased during the look-back period.

For more information, please see the following:

• Rhode Island Department of Human Services
• Rhode Island Medicaid Rules and Regulations (7/1/15)

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