Current through August 30, 2024
(a) For purposes of determining whether to
impose, under
7 AAC 100.510, a transfer-of-asset penalty, the
department will consider the purchase of an annuity to be a transfer of an
asset for less than fair market value unless the annuity
(1) is an annuity described in
26 U.S.C.
408(b) or (q);
(2) is irrevocable and
nonassignable;
(3) is actuarially
sound in accordance with (b) of this section;
(4) provides for equal monthly payments
during the term of the annuity, with no deferral or balloon payments;
(5) is purchased commercially;
(6) names the Medicaid recipient as the
primary beneficiary, or the recipient's spouse if part of a transfer under
7 AAC 100.506; and
(7) names the state as remainder beneficiary
(A) in the first position for at least the
total amount of medical assistance paid by the department on behalf of the
annuitant; or
(B) in the second
position, after the recipient's community spouse, minor child, or disabled
child named in the first position, if the community spouse or child disposes of
any remainder for less than fair market value.
(b) If the amount that is expected to be paid
out during a beneficiary's lifetime is equal to or greater than the purchase
price of the annuity, the annuity is actuarially sound for the purpose of
(a)(3) of this section. The department will determine whether an annuity is
actuarially sound by
(1) computing the number
of years the beneficiary is expected to live based on the beneficiary's sex and
age at the time the annuity is purchased, using the United States Social
Security Administration, Office of the Chief Actuary's Period Life
Table 2002, revised as of June 27, 2006, and adopted by
reference;
(2) multiplying the
beneficiary's life expectancy by the annual amount the annuity is scheduled to
pay out and rounding the product down to the nearest dollar; the resulting
figure is the amount that the annuity is expected to pay out over the life of
the beneficiary; and
(3) comparing
the amount determined under (2) of this subsection to the purchase price of the
annuity.
The Period Life Table, 2002, adopted by reference in
7 AAC 100.514(b) is available on the
Internet at
http://www.ssa.gov/OACT/STATS/table4c60.html.
Authority:AS
47.05.010
AS 47.07.020
AS
47.07.040
