Condition 3: Annuity Transaction

Condition 3: Annuity Transaction

The third condition is that at least one MA-LTC annuity transaction has occurred.

An MA-LTC annuity transaction occurs when:

A qualified action is taken on the annuity (purchase, certain changes, etc.).
The qualified action took place during the lookback period or while the person was an MA-LTC enrollee.

You must first check the annuity contract and other annuity information you have received to determine if an annuity transaction has occurred. If you cannot make this determination you must send the applicant the Required Annuity Information (DHS-5143) form to determine if an annuity transaction has occurred. Do not require the applicant or their spouse to designate DHS as the PRB if an annuity transaction has not occurred during the lookback period.

Sadie Example:

Sadie is requesting MA-LTC today and meets all the MA eligibility criteria. She owns an annuity. The contract lists her niece as the beneficiary of her annuity contract. Sadie purchased the annuity six months ago.

Action:

Condition 1: Consider the first condition to be met.

Condition 2: Consider the second condition to be met.

Condition 3: Consider the third condition to be met because the purchase of the annuity is a qualified action taken during Sadie’s lookback period.

David Example:

David is requesting MA-LTC today and meets all the MA eligibility criteria. He is the payee of an annuity owned by his wife. A beneficiary is not listed on the annuity contract. David’s wife purchased and annuitized the annuity twelve years ago. A completed and returned DHS-5143 indicates no other transactions have occurred since that time.

Action:

Condition 1: Consider the first condition to be met.

Condition 2: Consider the second condition to be met.

Condition 3: Do not consider condition 3 to be met, because an annuity transaction did not occur. No further evaluation of the PRB annuity requirement is needed at this time. If an annuity transaction occurs in the future, the annuity will need to be evaluated to determine whether DHS must be named a preferred remainder beneficiary.

Page 6

Designating DHS as the PRB - Requirement Conditions

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