2-009.07A6c(2)(b) Deprivation of Resources for Annuity Transactions

469 NAC 2-009.07A6c(2)(b)

For long term care services (see 469 NAC 2-009.10B), an annuity transaction after February 8, 2006, is treated as a disposal of an asset for less than fair market value unless the State of Nebraska is named as the remainder beneficiary in the first position for at least the total amount of Medicaid expenditures paid, or is named as the remainder beneficiary in the second position after the community spouse and/or minor or disabled child. An annuity is also treated as a disposal of assets for less than fair market value unless it is irrevocable and non-assignable, actuarially sound, and provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments. This provision also applies to a community spouse.

Transaction is defined as purchase of an annuity changing the beneficiary or authorizing the commencement of the pay out period (annuitizing).

See 469 NAC 2-009.10B for long term care services that are subject to deprivation of resources provisions.

The issuer of an annuity must notify the Department when there is a change in the amount of income or principal withdrawn from the annuity.

Individuals receiving Medicaid are notified on the application and redetermination forms of the remainder beneficiary requirement. The annuity verification form notifies the company of the remainder beneficiary requirement.

{2/14/09}