An official State of Texas website.
F-7110 Persons Impacted by Post-Deficit Reduction Act (DRA) Annuity Policy
Revision 09-4; Effective December 1, 2009
Post-DRA annuity policy impacts any person who applies for Medicaid in an institutional setting on or after Oct. 1, 2006. Post-DRA annuity policy would also impact any person who is Medicaid eligible in the community and requests a program transfer to a Medicaid program in an institutional setting on or after Oct. 1, 2006. This includes:
- Applicants — For applications filed on or after Oct. 1, 2006, consider both pre-DRA and post-DRA annuity policies.
- Program transfer requests — For program transfer requests from any Medicaid program to an institutional program or waiver services requested on or after Oct. 1, 2006, consider both pre-DRA and post-DRA annuity policies.
- Redeterminations — For redeterminations of institutional or waiver services worked on or after Oct. 1, 2006, consider both pre-DRA and post-DRA annuity policies.
- Reported changes — For reported changes in annuities worked on or after Oct. 1, 2006, consider both pre-DRA and post-DRA annuity policies. This includes all annuities, regardless of purchase date.
Note: Neither pre-DRA or post-DRA transfer of asset policies regarding annuities apply to a person who has had continuous Medicaid coverage before March 1, 1981. This includes any person who is Medicaid eligible in the community and requests a program transfer to an institutional program or waiver services and who has had continuous Medicaid coverage before March 1, 1981.
F-7120 Application File Date or Program Transfer Request Date
Revision 21-4; Effective December 1, 2021
If the application file date or program transfer request date is:
- before Oct. 1, 2006, use pre-DRA annuity policy;
- on or after Oct. 1, 2006 and the annuity was purchased or the last annuity transaction date was before Feb. 8, 2006, use pre-DRA annuity policy; or
- on or after Oct. 1, 2006 and the annuity was purchased or the last annuity transaction date was on or after Feb. 8, 2006, use post-DRA annuity policy.
The application file date is the date the Texas Health and Human Services Commission (HHSC) receives an application form containing the applicant’s name, address and appropriate signature.
The program transfer request date is:
- the date a Medicaid recipient is admitted to a long-term care facility; or
- he date a request (Form H1746-A) is received to test a Medicaid recipient for waiver Medicaid.
F-7130 Annuity Transaction
Revision 09-4; Effective December 1, 2009
Transactions other than purchases that would make an annuity subject to the DRA policy include any action taken by the person that changes the course of payment from the annuity or that changes the treatment of the income or principal of the annuity. These transactions include additions of principal, elective withdrawals, requests to change the distribution of the annuity, elections to annuitize the contract and similar actions.
F-7140 Annuity Purchase or Transaction Date
Revision 09-4; Effective December 1, 2009
If the annuity purchase or transaction date is:
- before Feb. 8, 2006, use pre-DRA annuity policy regardless of the application file date/program transfer request date or the date of the case manager action for an existing case; or
- on or after Feb. 8, 2006, use pre-DRA and post-DRA policy in determining annuity treatment based on the application file date or program transfer request date or the date of the case manager action for an existing case.