The following are key policy points concerning the Treatment of annuities purchased on or after February 8, 2006.     317:35-5-41.8(c)

1.  The purchase of an annuity shall be treated as the disposal of an asset for less than fair market value unless the Oklahoma Health Care Authority is named as the remainder beneficiary either:
   1. in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual; or
   2. in the second position after the community spouse, child under 21 years of age, or disabled child and is named in the first position if the spouse or a representative of the child disposes of any such remainder for less than fair market value.
2. For purposes of determining financial eligibility for long-term care services under this chapter, the term assets shall include an annuity purchased by or on behalf of an annuitant who has applied for SoonerCare nursing facility services or other long-term care services unless the annuity meets one of the following conditions:
   1. The annuity is an annuity described in subsection (b) or (q) of Section 408 of the United States Internal Revenue Code of 1986; or
   2. The annuity is purchased with proceeds from:
      1. An account or trust described in subsection (a), (c), or (p) of Section 408 of the United States Internal Revenue Code of 1986;
      2. A simplified employee pension as defined in Section 408(k) of the United States Internal Revenue Service Code of 1986;
      3. A Roth IRA described in Section 408A of the United States Internal Revenue Service Code of 1986; or
   3. The annuity:
      1. is irrevocable and non-assignable;
      2. is actuarially sound as determined in accordance with actuarial publications of the Office of the Chief Actuary of the United States Social Security Administration; and
      3. provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments made.