PA Annuity - PA Care Management, Inc.

Medicaid Annuity Report

June 2007

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James v. Richman Decision                                     Amended Annuity Provisions

An Annuity Purchase Creates Financial Eligibility for Waiver for an Unmarried Person

Written By: Jeffrey A. Marshall , CELA*

In some cases, a DRA compliant annuity purchase can help an unmarried individual qualify financially for home Waiver services. Here is an example.

1.         Mr. Smith, a widower aged 70, was assessed to be clinically eligible for the PDA 60+ Waiver Home and Community-Based Services on April 1, 2007 . He has monthly income of $1,000 per month and countable resources of $70,000.

2.         Mr. Smith is not eligible for Waiver services due to $62,000 of excess resources.

3.         Mr. Smith and his son consult an attorney who is familiar with the annuity rules. The attorney recommends that Mr. Smith purchase a DRA compliant annuity in the amount of $62,000.

4.         The annuity will pay Mr. Smith $405.00 per month payable over Mr. Smith’s 153 month life expectancy.

5.         Mr. Smith’s income is now $1,405 per month and his countable resources are $8,000. He is financially eligible for Waiver.

6.         Mr. Smith now has an extra $405 per month to supplement the Waiver services he will be receiving and to enhance his long-term ability to stay in his home. The state gets reimbursed from the annuity if Mr. Smith dies while payments remain.

*Attorney Marshall is Certified as an Elder Law Attorney by the National Elder Law Foundation under authority of the Pennsylvania Supreme Court. He is Managing Attorney of the Law Firm of Marshall, Parker and Associates with offices in Williamsport, Jersey Shore, Wilkes-Barre, and Clarks Summit, PA. He can be contacted at webmail@paelderlaw.com.

_____________________________________________________________________

PCM

Pennsylvania’s trusted source for Medicaid Annuities

49 East Fourth Street , Williamsport , PA 17701

570-326-1890

www.paannuity.com

webmail@paannuity.com

______________________________________________________________________

If you would like to be added or removed from our mailing list, please e-mail PCM at webmail@paannuity.com.

_____________________________________________________________

PCM

Pennsylvania’s trusted source for Medicaid Annuities

49 East Fourth Street, Williamsport, PA 17701

570-326-1890

www.paannuity.com

webmail@paannuity.com

_____________________________________________________________

If you would like to be added or removed from our mailing list, please e-mail PCM at webmail@paannuity.com.

_____________________________________________________________

For further information, please contact:

Matthew J. Parker, Esq., CELA*    mparker@paannuity.com

Patti Jo Turner, BSEd          pturner@paannuity.com

PCM

49 East Fourth Street
Williamsport, PA 17701
570-326-1890

webmail@paannuity.com

* Certified as an Elder Law Attorney by the National Elder Law Foundation.