In a recent Federal Court case, the Community Spouse (C.S.) was allowed to receive over $2,000.00 a month of income from an immediate single premium annuity she bought with excess assets. This annuity complied with the DRA 2005 requirements.
Legal finding: The Federal Court found in favor of the C.S. DSS treatment of annuity as an asset was more restrictive than SSI requirements violating federal law. Court found Deficit Reduction Act of 2005 (DRA) did not change the treatment of annuities in this regard.
Case: Lopes v. Starkowski,US District Court, District of CT, Aug 11, 2010
