NJ Medicaid confirms that certain irrevocable immediate annuities are not resources.

When a person applies for Medicaid to pay for long-term care services, his resources must be less than a specific amount, which is generally $2,000 if the gross monthly income is less than $2,130, and $4,000 if the income is higher than that. “Resources” and “income” are treated differently. If the applicant owns an annuity contract, it may be counted as an excess resource depending on its characteristics.

In M.W. v. Division of Medical Assistance and Health Services and Union County Board of Social Services, OAL DKT no. HMA 2998-2013, M.W. had purchased an irrevocable, immediate, single-premium annuity that could not be surrendered for cash value. The County agency treated it as a resource and denied eligibility. On appeal (Fair Hearing), the Administrative Law Judge determined that it could not be counted as a resource because it could not be liquidated under any circumstances. On January 28, 2014, the Director of NJ Medicaid (DMAHS) issued her Final Agency Decision and reversed the County’s decision.

The case was argued and briefed by Linda S. Ershow-Levenberg, and Lauren S. Marinaro Esq. & Beth L. Barnhard Esq. assisted with the brief.

There are many kinds of annuities. Call us to discuss your particular situation at (732) 382-6070.


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