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Step 1: $148,000 Step 2: $163,050 (amount of resources in his name) The amount in STEP 1 < amount in STEP 2. Deduct $148,000 from the excess resources ($161,050 – 148,000= $13,050). Mr. Magenta must reduce resources in order to be eligible. Example 2: Mr. Salt, a 70 year old married man, purchases a qualified Long Term Care Partnership policy in Virginia in 2009 with a lifetime maximum of $250,000. He enters a nursing home in North Carolina a year later. His wife applies for LTC on May 3, 2014. The policy has paid out $248,500 as of this date. Total countable resources (before CSRA) are $297,060. All property is jointly owned by Mr. Salt and Mrs. Pepper. Countable resources after CSRA are $187,500 – 2,000 = 185,500 excess resources. STEP 1: $248,000. STEP 2: $297,060 /2 = $148,530 (his share of resources jointly owned). The amount in STEP 1 > amount in STEP 2. Deduct $148,530 from excess resources. ($185,500 – 148,530 = $36,970). Mr. Salt must reduce or rebut excess resources in order to be eligible. 5. Reporting the amount of resources protected at estate recovery: Send to the DMA- Estate Recovery Administrator the name of the insured and the name and address of the insurance company. Include the amount protected from estate recovery due to the client having a Long Term Care Partnership policy and attach a copy of the policy, if one is available. Retain a copy of this information in the case file. 6. Non-Participating policy A non-participating whole life policy does not pay dividends. Verify the original face value and current CSV. E. Annuities An annuity guarantees the annuitant (person who receives benefit from the annuity) periodic payments of a fixed amount for a specified term of years, for life, or until some specified event takes place in exchange for the payment of a fixed sum. 1. An annuity is usually purchased with a single premium or payment. 2. An annuity is a resource if one of the following criteria are met: An annuity which is revocable or which can be sold or assigned is a countable resource. Contact the issuer via the DMA-5111, Annuity Verification Form, to determine the annuity’s status. 90