IM-60 June 16, 2023; IM-58 May 30, 2017; IM-26 March 15, 2012; Email Memo IM-44 November 2, 2010; IM-106 November 8, 2007; IM-73 December 20, 1995
All annuity contracts, including the application page, are to be sent as an attachment with the Request for Interpretation of Policy (IM-14) through proper supervisory channels for Income Maintenance programs to the Policy and Procedure Collaboration Portal. Only supervisors or managers may submit new case specific IM-14. Program and Policy staff will review all annuities to determine whether the annuity can be excluded as a resource and no transfer penalty imposed. Field staff do not determine how to count an annuity.
An annuity must be evaluated to determine the effect on MO HealthNet eligibility. An annuity may be an available resource, a source of income, or a transfer of property. Program and Policy will make this determination and will provide necessary direction via the IM-14 response. Once the annuity is determined to be a resource, an income stream, both, or a transfer of property, it does not need to be submitted to Program and Policy for reconsideration unless there has been a change in the circumstances of the annuity. Many annuities are intended as retirement or investment plans, purchased without intent to gain eligibility for MO HealthNet benefits. In other circumstances, some or all of the funds used to purchase an annuity must be considered a transfer of property without fair and valuable consideration (refer to 1040.020.35 Annuities Resulting in a Transfer of Property). Annuities may be:
- a source of income (Income Type: UI UNEARNED INCOME, Income Source: AN ANNUITIES)
- an available resource (Resource Class: LR LIQUID RESOURCE, Resource Type: AN ANNUITY)
- a transfer of property (to be entered in FAMIS from the Select MA Transfer of Assets (FMWP) screen)
- a source of income and an available resource
- a source of income, an available resource, and a transfer of property
Prior to August 28, 2005, the income stream of an annuity is an excluded asset.
NOTE: The income stream is an excluded asset but any payments made from the annuity to the participant are counted as unearned income.
For annuities that were purchased and began making payments on or after August 28, 2005, but prior to August 28, 2007, apply the provisions of Senate Bill 539 (2005) (outlined in 1030.030.20.15 Annuities That Were Purchased and Began Making Payments on or After August 28, 2005, but Prior to August 28, 2007).
For annuities that were purchased and began making payments on or after August 28, 2007, apply the provisions of Senate Bill 577 (2007) (outlined in 1030.030.20.10 Annuities That Were Purchased and Began Making Payments on or After August 28, 2007).
EXCEPTION: Do not apply these provisions to annuities purchased for a community spouse or institutionalized spouse when determining eligibility for MHABD vendor or HCB benefits for annuities that were purchased or began making payments on or after April 20, 2010.
Apply the policy in 1030.030.10 Determining Eligibility for MHABD Vendor or Home and Community Waiver Services for Annuities That Were Purchased and Began Making Payments on or After April 20, 2010 When There Is a Community Spouse for annuities that were purchased or began making payments.