West Virginia uses its own life expectancy table.

ANNUITY RULES

According to the West Virginia Income Maintenance Manual, Chapter 17 entitled Long Term Care:

1. Institutional Spouse is Annuitant:

a. Establishment of an annuity is treated as a transfer of resources, unless the annuity meets the following criteria:

i. The individual disclosed to the State any interest the individual or his spouse has in any annuity;
ii. The State is named as the remainder beneficiary, or as the second remainder beneficiary after a community spouse or minor or disabled adult child, for an amount at least equal to the amount of Medicaid benefits provided when the annuity is purchased by an applicant/recipient or spouse;
iii. The annuity was purchased by or on behalf of the individual and one of the following applies:

1. The annuity is considered either:

a. An individual retirement annuity (according to Section 408 (b) of the Internal Revenue Code of 1986 (IRC); or
b. A deemed Individual Retirement Account (IRA) under a qualified employer plan (according to section 408 of the IRC).

OR

1. The annuity is purchased with proceeds from one of the following:

a. A traditional IRA (IRC Section 408a); or
b. Certain accounts or trusts which are treated as traditional IRAs (IRC Section 408(c)); or
c. A simplified retirement account (IRC) Section 408(p)); or
d. Simplified employee pension (IRC Section 408(k)); or
e. A Roth IRA (IRC Section 408A).

OR

1. The annuity meets all of the following requirements:

a. The annuity is irrevocable and non-assignable; and
b. The annuity is actuarially sound; and
c. The annuity provides payments in approximately equal amounts, with no deferred or balloon payments.

2. Community Spouse is Annuitant:

a. Establishment of an annuity is treated as a transfer of resources, unless the annuity meets the following criteria:

i. The individual disclosed to the state any interest the individual or his spouse has in any annuity;
ii. The State is named as the remainder beneficiary or as the second remainder beneficiary after a community spouse or minor or disabled adult child, for an amount at least equal to the amount of Medicaid benefits provided when the annuity is purchased by an applicant or spouse.

Learn more by visiting the West Virginia Department of Health & Human Resources website.

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