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a. If it is revocable determine from the issuer what amount the a/b would receive if he or she revoked the amount of the annuity. This amount is a countable resource. b. If the annuity can be sold, determine from the issuer the amount the a/b would receive for selling the annuity. This amount is a countable resource. c. Determine from the issuer if the payments from the annuity can be assigned to another person. If payments can be reassigned, then the annuity is considered assignable and is a countable resource. 3. Verification Sources a. Request a copy of the terms of the annuity from the a/b. b. Contact the issuer of the annuity. Send a DMA-5111, Annuity Verification Form, at each application and redetermination for institutional services. 4. Burial annuities pay the estate for burial costs and burial is the compensation, like an irrevocable burial trust. If they are irrevocable and attached to an irrevocable burial contract they are not a countable resource. If revocable, only exclude up to the burial exclusion. 5. For each annuity evaluated during application or redetermination, send a copy of the annuity, the a/b’s name, Medicaid ID number, case number, and short explanation identifying the annuity as a resource or asset for the a/b to: North Carolina Department of Health and Human Services Third Party Recovery Section Division Of Health Benefits 2508 Mail Service Center Raleigh, NC 27699-2508 F. Annuities Purchased Prior to November 1, 2007 If an annuity purchased prior to November 1, 2007, is a resource, its purchase is not a transfer of assets. Count the value of the annuity as a resource. If the annuity is not a resource, evaluate for transfer of assets. Refer to MA-2240, Transfer of Assets. If the annuity is actuarially sound according to the policy in effect prior to November 1, 2007, the purchase of the annuity was an allowable transfer. G. Annuities Purchased or Changed On or After November 1, 2007 If an annuity purchased or changed on or after November 1, 2007, is a resource, it does not have to meet the transfer of asset requirements to be one of the acceptable types of annuities or to be actuarially sound. Refer to MA-2240, Transfer of Assets. 91