March 7, 2006, Introduced by Rep. Kolb and referred to the Committee on Senior Health, Security, and Retirement.
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. 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 will only be
disregarded if an irrevocable annuity is commercially issued by an
agent licensed in the United States and returns the principal and
interest in equal monthly payments starting with the first payment,
with the return of the principal and interest within the
purchaser's life expectancy. The department has first priority to
recover the costs of medical assistance paid on behalf of the
individual from the remaining principal of the annuity upon the
death of the annuitant. Any annuity not meeting the criteria
described in this section is considered a transfer of an asset for
less than fair market value and may be subject to divestment
penalties as outlined by the department.