Page 15
Louisiana Medicaid Eligibility Manual Eligibility Factors
Reissued October 21, 2025 Page 15 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**”
Use Z-1200 Life Expectancy Tables to determine actuarial life expectancy of the annuitant when necessary.
Treatment of Annuities created on or after February 8, 2006
Effective February 8, 2006, all long term care applicants, including SSI beneficiaries, were required to disclose on their application and renewals for Medicaid assistance, a description of any interest the applicant or community spouse may have in an annuity. The disclosure is a condition for Medicaid coverage of long term care services, including nursing facility services and home and community based waiver services.
This disclosure requirement applies regardless of whether or not an annuity is irrevocable or is treated as an asset.
Note: Application forms for long term care are required to include a statement that names the State as a remainder beneficiary on any annuity purchased on or after February 8, 2006 by virtue of the provision of medical assistance for institutional care.
Requirement to Name the State as Beneficiary
The requirement to name the State as a remainder beneficiary is not restricted to annuities purchased by or on behalf of an institutionalized individual who has applied for medical assistance for nursing facility or other long term care services. It applies to
annuities purchased by an applicant or by a spouse, and to transactions made by the applicant or spouse.
An annuity must name the State as the remainder beneficiary in the first position for the total amount of Medicaid assistance paid on behalf of the institutionalized individual, unless there is a community spouse and/or a minor or disabled child. If there is a community spouse and/or a minor or disabled child, the State may be named in the next position after those individuals.
If the State has been named beneficiary after a community spouse and or a minor or disabled child, and any of those individuals or their representatives dispose of any of the remainder of the annuity for less than fair market value, the State may then be named in the first position.