Page 208

CODE OF COLORADO REGULATIONS 10 CCR 2505-10 8.100 Medical Services Board

208 i) The Department is named as the remainder beneficiary in the first position for the total amount of medical assistance paid on behalf of the individual; or ii) The Department is named as the remainder beneficiary in the next position after the community spouse or minor or disabled child. iii) This provision shall not apply to annuities that are revocable and/or assignable. c. The Eligibility Site shall notify the issuer of the annuity that the Department is a preferred remainder beneficiary in the annuity for medical assistance provided to the institutionalized individual. This notice shall include a statement requiring the issuer to notify the Eligibility Site of any changes in the amount of income or principal that is being withdrawn from the annuity or any other transactions, as defined at 8.100.7.I.1., regardless of when the annuity was purchased. d. If the Department is not named on the annuity as a remainder beneficiary, then the value of funds used to purchase the annuity shall be deemed a transfer without fair consideration and shall be subject to the penalty period provisions described at 8.100.7.F. i) This provision shall not apply to annuities that are revocable and/or assignable. e. Revocable Annuities i) A revocable annuity is a countable resource. The value of the annuity is the total value of the annuity principal plus any accumulated interest. a) If the annuity includes a surrender charge or other financial penalty (other than tax withholding or a tax penalty) for withdrawing funds from the annuity, then the value of the annuity is the net amount the individual would receive upon full surrender of the annuity.

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Page 208

Official source

CODE OF COLORADO REGULATIONS 10 CCR 2505-10 8.100 Medical Services Board

208 i) The Department is named as the remainder beneficiary in the first position for the total amount of medical assistance paid on behalf of the individual; or ii) The Department is named as the remainder beneficiary in the next position after the community spouse or minor or disabled child. iii) This provision shall not apply to annuities that are revocable and/or assignable. c. The Eligibility Site shall notify the issuer of the annuity that the Department is a preferred remainder beneficiary in the annuity for medical assistance provided to the institutionalized individual. This notice shall include a statement requiring the issuer to notify the Eligibility Site of any changes in the amount of income or principal that is being withdrawn from the annuity or any other transactions, as defined at 8.100.7.I.1., regardless of when the annuity was purchased. d. If the Department is not named on the annuity as a remainder beneficiary, then the value of funds used to purchase the annuity shall be deemed a transfer without fair consideration and shall be subject to the penalty period provisions described at 8.100.7.F. i) This provision shall not apply to annuities that are revocable and/or assignable. e. Revocable Annuities i) A revocable annuity is a countable resource. The value of the annuity is the total value of the annuity principal plus any accumulated interest. a) If the annuity includes a surrender charge or other financial penalty (other than tax withholding or a tax penalty) for withdrawing funds from the annuity, then the value of the annuity is the net amount the individual would receive upon full surrender of the annuity.