In a case involving ELA member attorney Chad R. Oldham, a U.S. district court holds that the annuities a Medicaid applicant purchased for his wife cannot be considered as either assets or income when determining Medicaid eligibility. Jackson v. Selig (U.S. Dist. Ct., E.D. Ark., No. 3:10–CV–00276–BRW, March 13, 2013).
Richard Jackson entered a nursing home and applied for Medicaid benefits. Arkansas denied his application due to excess resources. Mr. Jackson then bought two annuities that were payable to his wife as the primary beneficiary and re-applied for benefits. The state found that Mr. Jackson was the owner of the annuities and that his resources still exceeded the applicable limit.
Mr. Jackson sued the state in federal court. The state filed a motion to dismiss, but the district court denied the motion. Both parties asked for summary judgment. (Mr. Jackson died during the pendency of the lawsuit.)
The U.S. District Court for the Eastern District of Arkansas grants summary judgment to Mr. Jackson. The court holds that because the annuities complied with federal Medicaid law, they cannot be considered as assets when determining Medicaid eligibility. In addition, the court rules that the annuity payments were made to Mr. Jackson's wife, so the annuity payments are not income or resources available to Mr. Jackson.
For the full text of this decision, click here.
Mr. Jackson was represented by ElderLawAnswers member attorney Chad R. Oldham from Jonesboro, Arkansas.
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