To amend title XIX of the Social Security Act to count portions of income from annuities of a community spouse as income available to institutionalized spouses for purposes of eligibility for medical assistance, and for other purposes.

“(E) Annuity income

“(i) In general—In the case of payment of income from a qualifying annuity—

“(I) if payment of income is made solely in the name of the community spouse, one-half of the income shall be considered available to the institutionalized spouse and one-half to the community spouse;

“(II) if payment of income is made in the names of the institutionalized spouse and the community spouse, one-half of the income shall be considered available to the institutionalized spouse and one-half to the community spouse; and

“(III) if payment of income is made in the names of the community spouse and another person or persons, one-half of the proportion of the community spouse’s interest in such income shall be considered available to the institutionalized spouse.

“(ii) Qualifying annuity—In this subparagraph, the term “qualifying annuity” means an annuity that—

“(I) is purchased after the date that is 60 months before the date specified in subparagraph (B)(ii) of section 1917(c)(1) for an amount that is equal to or greater than fair market value; and

“(II) is not described in clause (i) of subparagraph (G) of such section.

“(iii) Inapplicability of other rules—The rules of subparagraphs (A) and (B) shall not apply with respect to income from a qualifying annuity.”