A federal district court rules that a Medicaid applicant is entitled to a preliminary injunction because she is likely to succeed on her claim that an annuity purchased by her husband that was non-assignable and irrevocable is not an available asset for the purposes of Medicaid eligibility. Flamini v. Velez (U.S. Dist. Ct., Dist. N.J., No. 1:12-cv-17304 (RMB/JS), July 19, 2013 (unpublished).
Elizabeth Flamini entered a nursing home. Her husband, Angelo, purchased an annuity that included an endorsement stating that the annuity would comply with federal Internal Revenue Code requirements that annuities be nontransferable and irrevocable.
Mrs. Flamini applied for Medicaid. The state denied her application, finding that the annuity was an available asset. Mrs. Flamini sued in federal court and asked for a preliminary injunction.
The U.S. District Court for the District of New Jersey grants a preliminary injunction, holding that Mrs. Flamini has shown a likelihood of success in demonstrating that the annuity is not an available resource. According to the court, because the annuity is non-assignable and irrevocable, it is not considered an asset under federal Medicaid law.
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