1 Tex. Admin. Code § 358.335 - Treatment of Annuities with a Purchase or Transaction Date on or after February 8, 2006
(a) This section
describes the Texas Health and Human Services Commission's (HHSC's) treatment
of nonemployment-related annuities purchased or having a transaction date on or
after February 8, 2006. In this section, a nonemployment-related annuity means
a revocable or irrevocable annuity a person may purchase to provide
income.
(b) A nonemployment-related
annuity is not a countable resource if the annuity:
(1) is irrevocable;
(2) is nonassignable;
(3) provides for payments in equal amounts
during the term of the annuity, with no deferral and no balloon payments
made;
(4) is guaranteed to return
within the person's life expectancy at least the person's principal investment
(that is, it is actuarially sound, as determined in accordance with actuarial
publications of the Office of the Chief Actuary of the United States Department
of Health and Human Services); and
(5) names the state of Texas as the remainder
beneficiary in the first position for at least the total amount of Medicaid
paid on behalf of a person in an institutionalized setting.
(c) If a person in an
institutionalized setting is married and the spousal impoverishment provisions
of §
358.413 of this subchapter
(relating to Spousal Impoverishment Treatment of Income and Resources) apply, a
nonemployment-related annuity is not a countable resource if the annuity meets
the requirements of subsection (b)(1) - (4) of this section and the annuity:
(1) names the state of Texas as the remainder
beneficiary in the first position for at least the total amount of Medicaid
paid on behalf of the person in an institutional setting; or
(2) names the state of Texas in the second
position if the community spouse or a minor or disabled child is named in the
first position.
(d) A
nonemployment-related annuity that is revocable is a countable resource. For a
revocable nonemployment-related annuity, HHSC:
(1) uses fair market value to determine the
value of the resource; and
(2)
applies transfer-of-assets provisions in Division 4 of this subchapter
(relating to Transfer of Assets) based on the amount already paid out of the
annuity.
(e) A
nonemployment-related annuity that is irrevocable is not a countable resource.
For an irrevocable nonemployment-related annuity, HHSC:
(1) applies transfer-of-assets provisions in
Division 4 of this subchapter to the purchase price of the annuity;
and
(2) for a transaction involving
an existing annuity, applies transfer-of-assets provisions to the remaining
payout value at the time of the transaction.
Notes
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