Pennsylvania

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Pennsylvania’s annuity standards are clearly stated in regulation/policy:
Pennsylvania describes that an annuity purchase by an applicant/spouse that fails certain requirements can be treated as a transfer for less than fair market value (penalty exposure). Pennsylvania lists requirements including:

• Irrevocable and nonassignable
   
• Actuarially sound
   
• Equal payments with no deferral and no balloon payments
   
• Naming the Department as remainder beneficiary in the first position, and in the second position when there is a community spouse/minor/disabled child (with additional conditions) PA Code and Bulletin

  Pennsylvania’s DHS long-term care guidance discusses eligibility thresholds tied to 300% of the federal benefit rate, resource limits, and describes that when income exceeds 300% of the FBR, anticipated long-term care facility costs for a 6-month period can be used as an allowable medical expense deduction to reduce monthly income. Pennsylvania Government 

PA requires precision in beneficiary positioning and contract structure, and income treatment can be its own track. We help you and your counsel align the annuity mechanics with Pennsylvania’s stated requirements and the Medicaid case strategy.