Virginia uses its own life expectancy table.

ANNUITY RULES

According to the Virginia Department of Social Services Medicaid Manual, section M1140.260 entitled Annuities:

1. A non-employment related annuity purchased by or for an individual on or after February 8, 2006, using that individual’s assets will be considered an available resource unless it meets all of the following criteria: the annuity

a. Is irrevocable;
b. Is non-assignable;
c. Is actuarially sound; and
d. Provides for payments in equal amounts during the term of the annuity with no deferral and no balloon payments made

2. Prior to receiving long-term care services paid by Medicaid, all annuities purchased by the institutionalized individual or the community spouse on or after February 8, 2006, must name the Commonwealth of Virginia as the primary beneficiary for at least the total amount of medical assistance paid on behalf of the institutionalized individual. If there is a community spouse or minor or disabled child, the Commonwealth must be named as the remainder beneficiary behind the spouse or minor or disabled child.

The requirements listed in (1) above do not apply to annuities purchased by a community spouse. According to Susan Hart, the Medical Assistance Program Consultant of the Virginia Department of Social Services, an annuity owned by a community spouse does not need to be irrevocable, non-assignable, provide equal monthly payments, or be actuarially sound. It only must designate the state as a beneficiary.

Visit the Virginia Department of Social Services website to learn more.

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