Annuity Purchased After Eligibility Determination is Available Resource

After Glenda Morris applied for Medicaid, Oklahoma told her that she needed to spend down her share of assets to $2,000. She purchased burial plots and her husband spent $41,000 on an irrevocable annuity. The state denied Glenda benefits, and she sued the state in federal court, claiming that Transmittal 64 provides that resources used to purchase an annuity are no longer “available.”

The U.S. District Court for the Western District of Oklahoma sided with the state, finding that Transmittal 64 does not apply to annuities purchased after the initial determination of eligibility.

See Annuity Purchased Post-Eligibility Determination is Available Resource, ElderLawAnswers, Oct. 4, 2010.