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

ANNUITY RULES

According to the Texas Department of Health and Human Services Medicaid Eligibility Handbook, § F-7230 entitled Post-Deficit Reduction Act (DRA) Terms and Conditions:

1. The annuity meets the post-DRA terms and conditions if the annuity is irrevocable and non-assignable. The irrevocable and non-assignable annuity must also:

a. Be in the institutionalized individual’s name;
b. Provide for payments in equal amounts during the term of the annuity;
c. Not have any provision for deferral of payments or balloon payments;
d. Guarantee to return within the individual’s life expectancy at least the individual’s principal investment (life expectancy is calculated using life expectancy tables available from the SSA); and
e. Name the state of Texas as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual.

2. The annuity meets the post-DRA terms and conditions when the institutionalized individual is married and the annuity:

a. Is in the institutionalized individual’s name;
b. Is irrevocable and non-assignable;
c. Provides for payments in equal amounts during the term of the annuity;
d. Has no provision for deferral of payments or balloon payments;
e. Guarantees to return within the individual’s life expectancy at least the individual’s principal investment
f. Names the state of Texas as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual, or names the state of Texas in the second position if the community spouse or minor or disabled child is named in the first position.

3. the annuity meets the post-DRA terms and conditions when the institutionalized individual is married and the annuity:

a. is in the ineligible community spouse’s name;
b. is irrevocable and non-assignable;
c. provides for payments in equal amounts during the term of the annuity;
d. has no provision for deferral of payments or balloon payments;
e. guarantees to return within the ineligible community spouse’s life expectancy at least the ineligible community spouse’s principal investment; and
f. names the state of Texas as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual or names the state of Texas in the second position if the institutionalized individual or minor or disabled child is named in the first position.

If a community spouse owns an annuity, the institutionalized spouse may be designated as a beneficiary before the state Medicaid agency. (HHSC MEPD F-7230).

Learn more on the Texas Health and Human Services website.

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