Does MassHealth operations memo 07-14 prohibit the use of private annuities?
While MassHealth’s operation memo 07-14 does not prohibit the use of private annuities it certainly tells planners to proceed with caution. In this regard it is important to take a closer look at the operations memo itself along with the actual MassHealth regulations that govern annuities. Finally, it is important to note that it does not appear that commercial annuities are under any additional scrutiny. The memo indicates the when processing a long term care application that includes an annuity established on or after February 8, 2007, that the following steps must be followed. Review the annuity to see if it: • is actuarially sound according to the social security administration tables; • has equal payments; • is irrevocable; • is non-assignable; and • has no deferral or balloon payments. The memo further indicates that if the annuity meets all of these requirements then complete the notice of preferred remainder beneficiary (ANN-2) form and list either the issuing company or the pr
