Annuity As Asset Transfer

Except as provided in this rule, when assets are used to purchase an annuity during the look-back period, it is an asset transfer presumed to be made for the purpose of qualifying for Medicaid. To rebut this presumption, the participant must provide proof that clearly establishes the annuity was not purchased to make the participant eligible for Medicaid or avoid recovery from the estate following death. Proof is met if the participant shows the annuity meets TABLE 837.02 - LIFE ESTATE TABLE Age Life Estate Age Life Estate Age Life Estate Age Life Estate 0 .97188 28 .96062 56 .79006 84 .36998 1 .98988 29 .95813 57 .77391 85 .35359 2 .99017 30 .95543 58 .76822 86 .33764 3 .99008 31 .95254 59 .75675 87 .32262 4 .98981 32 .94942 60 .74491 88 .30859 5 .98938 33 .94608 61 .73267 89 .29526 6 .98884 34 .94250 62 .72002 90 .28221 7 .98822 35 .93868 63 .70696 91 .26955 8 .98748 36 .93460 64 .69352 92 .25771 9 .98663 37 .93026 65 67970 93 .24692 10 .98565 38 .92567 66 .66551 94 .23728 11 .98453 39 .92083 67 .65098 95 .22887 12 .98359 40 .91571 68 .63610 96 .22181 13 .98198 41 .91030 69 .62086 97 .21550 14 .98066 42 .90457 70 .60522 98 .21000 15 .97937 43 .89855 71 .58914 99 .20486 16 .97815 44 .89221 72 .57261 100 .19975 17 .97700 45 .88558 73 .55571 101 .19532 18 .97590 46 .87863 74 .53862 102 .19054 19 .97480 47 .87137 75 .52149 103 .18437 20 .97365 48 .86374 76 .50441 104 .17856 21 .97425 49 .85578 77 .48742 105 .16962 22 .97120 50 .83743 78 .47049 106 .15488 23 .96986 51 .83674 79 .45357 107 .13409 24 .96841 52 .82969 80 .43659 108 .10068 25 .96678 53 .82028 81 .41967 109 .04545 26 .96495 54 .81054 82 .40295 27 .96290 55 .80046 83 .38642 IDAHO ADMINISTRATIVE CODE IDAPA 16.03.05 – Eligibility for Aid to Department of Health and Welfare the Aged, Blind, & Disabled (AABD) Section 839 Page 68 the requirements Subsections 838.02 through 838.05 of this rule. (7-1-24) 01. Revocable Annuity. Is an annuity that can be assigned. The surrender amount of a revocable annuity is a countable resource. (7-1-24) 02. Irrevocable Annuity. The purchase price of an irrevocable, non-assignable annuity is treated as an asset transfer, unless the requirements of Subsections 838.03 through 838.05 of this rule are met. (7-1-24) 03. Irrevocable Annuity Life Expectancy Test. The participant’s life expectancy, as shown in the Social Security Actuarial - Period Life Table (2020), must equal or exceed the term of the annuity. Using the Table, compare the face value of the annuity to the participant’s life expectancy at the purchase time. The annuity meets the life expectancy test if the participant’s life expectancy equals or exceeds the term of the annuity. If the exact age is not in the Table, use the next lower age. See https://www.ssa.gov/oact/STATS/table4c6.html. (7-1-24) 04. State Named as Beneficiary. The purchase of an annuity is treated as an asset transfer unless the State of Idaho, Medicaid Estate Recovery is named as: (7-1-24) a. The remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the institutionalized individual under this title; or (7-1-24) b. The remainder beneficiary in the second position after the community spouse or minor or disabled child and is named in the first position if the community spouse or a representative of the minor or disabled child disposes of any remainder for less than fair market value. (7-1-24) 05. Equal Payment Test. The annuity must provide for payments in equal amounts during the term of the annuity with no deferral and no balloon payments made. (7-1-24) 06. Permitted Annuity. The purchase of an annuity is not treated as an asset transfer if the annuity meets any of the descriptions in Sections 408(b), or 408(q), Internal Revenue Code; or is purchased with proceeds from an account or trust described in Sections 408(a), 408(c), or 408(p), Internal Revenue Code, or is a simplified employee pension as described in Section 408(k), Internal Revenue Code, or is a Roth IRA described in Section 408A, Internal Revenue Code. (7-1-24)