Conditions 1 and 2

Annuities and MA-LTC

Reporting and Verification

Annuity Transactions

MA-LTC Annuity Requirements

Designating DHS as the PRB

Requirement Conditions

Designation Process

Designation Activity

Transfer Evaluation

Requirement Conditions

Evaluation Method

Actuarially Sound Determination

Transfer Evaluation Activity

Conditions 1 and 2

The first two conditions that must be met in order to apply the annuity transfer evaluation process are:

The applicant and/or their spouse purchased (owns) the annuity.

The applicant must meet all basic MA and MA-LTC eligibility requirements (meaning the applicant is otherwise eligible for MA-LTC).

A transfer penalty cannot be applied until the applicant is otherwise eligible for MA-LTC.

Justin, a current MA enrollee, is requesting MA-LTC today. He owns an annuity. He meets all other MA-LTC requirements, including designating DHS as the preferred remainder beneficiary of the annuity.

Determine that conditions 1 and 2 are met. As a current MA enrollee Justin meets all MA eligibility requirements and he has met all MA-LTC eligibility requirements.

Kate is requesting MA and MA-LTC today. Her husband, William, owns an annuity. Kate has been determined eligible for MA and has met all other MA-LTC requirements. William was not required to designate DHS as a preferred remainder beneficiary because the annuity contract did not allow for someone other than the surviving spouse to be designated as a beneficiary.

Determine that conditions 1 and 2 are met. Kate meets all eligibility requirements for both MA and MA-LTC.

Eloise is requesting MA and MA-LTC today. She owns an annuity. Her home equity exceeds the Home Equity Limit. She meets all basic MA and all other MA-LTC eligibility requirements.

Determine that condition 1 is met but that condition 2 is not met. Eloise is not otherwise eligible for MA-LTC because she did not meet the Home Equity Limit requirement. She is eligible for basic MA but is not eligible for MA-LTC. Do not complete a transfer evaluation of her annuity because it will not be possible to apply a transfer penalty, because Eloise is not otherwise eligible for MA-LTC.

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Transfer Evaluation - Requirement Conditions

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Updated December 22, 2022.
Copyright © 2011 Health Care Eligibility and Access (HCEA).