October 19, 2005, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding section 107a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 107a. (1) In establishing financial eligibility for the
medically indigent, resources shall be disregarded according to
standards established for the related medical assistance program.
For determining eligibility for the medical assistance program
only, the value of an annuity as a resource shall only be
disregarded if all of the following apply:
(a) The annuity is commercially issued by a company licensed
in the United States and issued by a licensed producer.
(b) The annuity is irrevocable.
(c) The annuity is purchased by a medical assistance
applicant, medical assistance recipient, or his or her spouse
solely for the benefit of the medical assistance applicant, medical
assistance recipient, or his or her spouse.
(d) The annuity is actuarially sound and returns the principal
and interest within the annuitant's life expectancy.
(e) The annuity payments are in substantially equal monthly
payment amounts starting with the first payment and continuing
through the term of the annuity payout.
(2) The department of community health has first priority to
recover the costs of medical assistance paid on behalf of the
medical assistance applicant or recipient from the remaining
principal of the annuity upon the death of the annuitant.
(3) An annuity not meeting the criteria described in this
section is considered a transfer of an asset for less than fair
market value and is subject to divestment penalties as outlined by
the department.