Selling Annuities for Medi-Cal Eligibility

(Note: This section applies to seniors age 65 and older.)

Annuities must not be sold to a senior under any of the following circumstances:

• The senior is buying the annuity for Medi-Cal eligibility and either of the following is true:
  1. The buyer's assets are equal to or less than the annual community spouse resource allowance set by the State Department of Health Services pursuant to the Medi-Cal Act.
  2. The senior would otherwise qualify for Medi-Cal.
• The senior is buying the annuity for Medi-Cal eligibility and, after the purchase, the senior or the senior's spouse would not qualify for Medi-Cal.
• If a fixed annuity is issued to a senior, the issuer must cancel the contract and refund all premiums, fees, any interest earned under, and costs paid for the annuity. This is in addition to any other remedy that may be available.

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