Appellate Court Strikes Down Two State Regulations Relating To Annuities For Medicaid Planning
Since the beginning of 2005, New Jersey Appellate Courts have struck down two separate state regulations relating to the use of annuities for Medicaid planning by holding that the regulations violate federal law.
On January 4, 2005, the appellate court ruled that a state regulation capping the amount of funds that a Medicaid applicant may use to purchase a commercial annuity contravenes federal law. Estate of F.K. V. Division of Medical Assistance and Health Services (App. Div. No. A-1004-02T5).
Then on January 21, 2005, in the matter of A.B. v. Division of Medical Assistance and Health Services (App. Div. No. A-4973-02T2), the appellate court held that federal law prohibits the State of New Jersey from requiring that it be named as the remainder beneficiary of an actuarially sound commercial annuity purchased by the community spouse of a Medicaid applicant.
In both cases, Medicaid applicants successfully challenged state regulations which went far beyond what federal law provided and which were used to deny Medicaid eligibility for the applicant. The courts found that the State exceeded its authority and that the regulations were improperly drawn or enforced.
Reader interactions
2 Replies to “Appellate Court Strikes Down Two State Regulations Relating To Annuities For Medicaid Planning”
Comments are closed.
From 1965 to 1983, I worked for a Company that was owned by an individual that was bought out by Work Wear and then busted as a monopoly and sold to Red Stick. Red Stick sold to ARA which became Aramark. There was an annuity that existed up to a certain point. At one point it was an actual $ amount under Work Wear Corporation.
Their offices were out of California but their website gives information that does not include those like myself. Employees that stayed on with ARA were allowed to convert their programs from the annuity to a 401K plan.
At one point the Corporate HR for ARA would not talk about the annuity as it existed unless you were a specific age. As I near retirement I wish this program would have been trackable but it still is an unknown asset. What shoould I expect at this point.
Charles,
Unfortunately, there is not enough clear information to respond to your post. If the annuity was some sort of retirement account established you, you should be able to track it down…and it shouldn’t matter what age you are when asking questions about it; these types of accounts don’t generally ‘disappear’. Given the transition of events and takeovers you describe, it may not be an easy investigation but your should pursue it through those companies nonetheless.