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.

NJ Medicaid confirms outright transfers to disabled kids cause no Medicaid penalty

Generally speaking, if a Medicaid applicant made gifts of assets during the 5-year look-back preceding her Medicaid application, eligibility will be denied for a period of time called a “transfer penalty.” There is a special exception to this rule for transfers that were made to disabled children.  

In this case , M.C. v. Union County Div. Soc. Serv. And DMAHS, HMA- 8967-2013, the local Medicaid agency imposed a transfer penalty for an outright transfer of assets to a disabled child, despite copious federal and state law to the contrary. On appeal (“fair hearing”), the Administrative Law Judge  recommended that the penalty be reversed, and on March 18, 2014,  the NJ Division of Medical Assistance and Health Services (DMAHS) issued its Final Agency Decision adopting the ALJ decision, eliminating the penalty.

The case was argued and briefed by Linda S. Ershow-Levenberg.

Call us to discuss your particular situation, at (732) 382-6070.