Mom has to take annuity, won't be able to stay on Rx plan

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Country: United States of America
State: New Jersey

My mom just turned 70 1/2 she has to take a minimum distribution from an annuity. With her low income before the distribution she is able to participate in a nearly free prescription plan which saves her a lot of out of pocket costs. If her income rises because of the distribution she will be unable to stay in the plan. Is there any way for her to receive the distribution and not claim it as income. I thought she could possibly gift the amount to one of her children to avoid the tax on it and to keep her income under the threshold.


Normally she can refuse the funds if she wishes but the funds may then go to the state.
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