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1147 Chapter 7:Worker guides • Section 7: OSIPM worker guides (07/2026) 12 years. The individual’s non-disabled adult child is the first remainder beneficiary. The individual does not have any other children. How would this annuity be treated? Answer: First determine whether the annuity meets all of the criteria of 461-145-0020 (4)(b)(C). The annuity is irrevocable and was purchased from a business. The individual’s life expectancy is 12.11 years and the annuity will pay out in equal installments over 12 years, so the annuity meets the first 3 criteria. However, the annuity does not meet the 4th criterion because a child under age 21 or child any age with a disability or ODHS|OHA is not named as the first remainder beneficiary. If the individual agrees to change the first remainder beneficiary to ODHS|OHA (up to the amount of medical benefits provided), count the $584 per month income only; the $62,000 resource is excluded. If the individual does not agree to change the first remainder beneficiary, the annuity counts as a resource. The resource exceeds the $2000 limit so Medicaid eligibility must be denied. Example 2 A female community spouse who is 69 years old purchased a $100,000 irrevocable annuity from an insurance company on March 15, 2006. The annuity will pay out $725 per month for 17 years. The community spouse’s non-disabled adult child is the first remainder beneficiary. The community spouse does not have a child under age 21 or a child any age with a disability. The individual applies for Medicaid for April 2006. How would this annuity be treated? Answer: First determine whether the annuity meets all of the criteria of 461-145-0020 (4)(b)(C). The annuity is irrevocable and was purchased from a business. The community spouse’s life expectancy is 17.08 years and the annuity will pay out in equal installments over 17 years, so the annuity meets the first 3 criteria. However, the annuity does not meet the 4th criterion because a child under age 21 or child any age with a disability or the individual/ODHS|OHA is not named as the first remainder beneficiary. If the community spouse agrees to change the first remainder beneficiary to the individual, and ODHS|OHA (up to the amount of medical benefits provided) should the individual not survive the community spouse, count the $725 per month as the community spouse’s income only; the $100,000 resource is excluded. Both the individual and ODHS|OHA as a contingency must be named as remainder beneficiaries, in that order. If the community spouse does not agree to change the first remainder beneficiary, the annuity counts as a resource. Determine the value of the resource per 461-145-0020 (3) and include it in the couple’s resource assessment. Annuities purchased by individuals (or their spouses) in non-standard living arrangements on or after July 1, 2006 Individuals in nonstandard living arrangements must agree by signing the application that ODHS|OHA will be a preferred remainder beneficiary on all annuities purchased on or after July 1, 2006. The individual must verify that the remainder beneficiary designation meets the requirements of 461-145-0022 before determined eligible. A notice should be sent to the annuity issuer advising them that ODHS|OHA is a remainder beneficiary. Use form SDS 0545 to notify the insurance company. Upload the notice into the electronic file and add a case note that the notice was sent. Annuities must meet the criteria of 461-145-0022(10) in order to count the monthly annuity payments as unearned income. If the criteria are not met, count the annuity as a resource. If the individual is eligible even counting the