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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 6 5. Annuities Funded by a Pension or Retirement Fund Annuities that are funded by a pension or retirement fund held by an employer or union should not be counted as a resource while the individual is employed, if termination of employment would be necessary to access the funds. If the annuity contains a special provision that allows the individual to access a portion of the funds or the funds in entirety under certain circumstances such as a medical emergency, the dollar amount available to the individual is a countable resource. Federal law requires individuals to take all necessary steps to obtain any annuity to which they are entitled, unless they can show good cause for not doing so. 6. Annuities Owned or Purchased by LTSS Applicants Annuities owned or purchased by individuals applying for Long-Term Services and Supports (LTSS) are subject to additional requirements and should be reviewed according to transfer of assets policy. See the Transfer of Assets and Penalty Periods policy. a. Disclosure Requirements of Interest in an Annuity at Application Individuals applying for LTSS must disclose information regarding any interest that the individual or his spouse may have in an annuity. This disclosure requirement applies regardless of whether the annuity is counted or excluded as a resource. If the individual or his spouse refuses to disclose information related to an annuity, the individual will be denied Medicaid eligibility based on the individual’s failure to cooperate.