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Division of Welfare and Supportive Services F-420 Medical Assistance Manual TRANSFER OF ASSETS 23 Oct 01 MTL 04/23 ANNUITIES
c. Treatment of Annuities Purchased On or After February 8, 2006.
Application Requirements
Disclosure of interest in an annuity is required for Medicaid coverage for HCBW and long-term care services at application or redetermination. The individual is required to disclose any interest they, or their community spouse, may have in an annuity regardless if it is irrevocable or is treated as an asset.
If the individual, spouse, or representative refuses to disclose information related to any annuity, the case manager will deny or terminate eligibility for long-term care services or Home and Community Based Waiver (HCBW) services, as applicable.
Information regarding the income and/or resources related to an annuity must be collected and verified to establish Medicaid eligibility.
1. There is no option to withhold information about annuities.
2. If the individual fails to provide enough information about an annuity to allow a determination of Medicaid eligibility, the case manager will deny the application based on the individual’s failure to cooperate.
3. When an unreported annuity is discovered after eligibility has been established and after payment for long-term care services has been made, terminate eligibility for long-term care services based on the applicant’s failure to cooperate.
The state must be named as a remainder beneficiary in annuities in which the applicant or spouse is the annuitant.
The case manager will notify the issuer of any annuity disclosed of the state’s right as a preferred remainder beneficiary.
The issuer is required to notify the state of any changes in disbursement of income or principal from the annuity.
The issuer may disclose information about the state’s position as remainder beneficiary to others who have a remainder interest in the annuity.
d. Evaluation and Treatment of Certain Transactions Related to Annuities On or After February 8, 2006