| MassHealth Clarifies Confusion Regarding Annuities
M&B's March 3rd Weekly reported the recent technical change to the MassHealth Regulation  520.007 from "annuitant" to "institutionalized individual" to reflect a clarification of the DRA. The new regulation now states an annuity must name the Commonwealth of Massachusetts as the first remainder beneficiary (for at least the total amount paid for medical assistance) on behalf of the institutionalized individual, in order for its purchase not to be considered a disqualifying transfer of assets.
"...if the community spouse is not receiving any MassHealth benefits and the community spouse is the owner and annuitant of the commercial annuity, so that the institutionalized spouse has no interest under the annuity contract, the current policy is not to require the community spouse to complete an ANN-2 or name the Commonwealth as the remainder beneficiary. If, however, the community spouse were to apply for MassHealth benefits or if a review of the contract or other factors indicated that the institutionalized spouse did have an interest under the annuity, the Office of Medicaid could require, as a condition of eligibility, the completion of an ANN-2 and the naming of the Commonwealth as the beneficiary in the proper position.."
Ultimately, despite the technical change, it is not necessary to name the Commonwealth as first remainder beneficiary for annuities owned by a community spouse. However, the beneficiary of such an annuity must remain amendable in case the community spouse were ever to need MassHealth benefits him or herself.
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Federal Report Says Health Care Spending Expected to Double by 2017
By 2017, U.S. health care spending is expected to nearly double from 2007's projected level, reaching $4.3 trillion and consuming 19.5 percent of the  nation's gross domestic product (GDP), federal analysts report in a February Web-Exclusive edition of Health Affairs.
Below are some key highlights and statistics from the Health Affairs federal report:
Medicare And Medicaid. By 2017, Medicare spending is expected to account for $884 billion, or just over one-fifth of all national health spending. Medicaid spending also is expected to continue to rise at a faster rate than overall health spending during the coming decade.
Prescription Drug Spending. Prescription drug spending is expected to grow 6.7 percent in 2007.
Hospital Spending. By 2017, hospital spending will nearly double from the expected $696.7 billion in 2007 to more than $1.3 trillion.
Out-of-pocket spending. Consumer out-of-pocket spending for health care is expected to reach $269.3 billion and grow 5.0 percent in 2007.
Long-term care. Long-term care is expected to remain one of the fastest-growing health sectors, climbing a projected 7.7 percent per year and reaching $119 billion by 2017.
Nursing home costs. Nursing home costs alone are expected to reach $217.5 billion with Medicaid expected to pay for about 43 percent of such care.
Click here to purchase and read the full text of the on-line article at Health Affairs.
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Legislative Update: Long-Term Care Insurance Estate Recovery Bill on to the Senate
Representative Christopher G. Fallon's H. 1135 Bill to require long-term care insurance to be valued as of the date of purchase for purposes of qualifying for an exlusion from MassHealth estate recovery, not the date of entering a nursing home, has passed the House! Now it's on to the Senate.
Click here for the text of House Bill No. 1135.
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Looking for Office Space?
Downtown Boston office is now available for  lease. For more information please contact Eugenia Kofitsas at 617/267.9700 or email ek@margolis.com.
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M&B St. Patty's Day Trivia
What city was the St. Patrick's Day custom first celebrated publicly in America in 1737?
(Answer will be provided in next week's Weekly)
Last Week's Trivia Answer:
The famous document that begins with "When in the  course of human events..." is the
Declaration of Independence.
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