Sec. 5.
(a) Income is
all money received by the household members in the month of hospitalization
subject to subsection (b).
(b)
Income received on a quarterly, semiannual, or annual basis shall be divided by
the appropriate number of months to establish monthly income.
(c) Countable income is gross monthly income
less the following exclusions:
(1)
Supplemental security income of the patient is excluded.
(2) Fifteen dollars and fifty cents ($15.50)
is deducted from the income of the patient.
(3) Funds from a grant, scholarship, or
fellowship, which are designated for tuition and mandatory books and fees at an
educational institution or for vocational rehabilitation or technical training
purposes, shall be deducted from the total of such funds.
(4) All of the earned income of a child under
fourteen (14) years of age is excluded.
(5) Home energy assistance is
excluded.
(6) The deductions
allowed by the Internal Revenue Service are excluded from gross self-employment
income.
(7) The deductions allowed
by the Internal Revenue Service are excluded from gross rental income, with the
following exceptions:
(A)
Depreciation.
(B) Payments on the
mortgage principal.
(C) Personal
expenses of the owner.
(D)
Insurance to pay off the mortgage in the event of death or
disability.
(E) Capital
expenditures.
(8) Tax
refunds are excluded as income and shall be considered personal property under
section 6 of this rule.
(9) Net
earned income is determined by deducting sixty-five dollars ($65) plus one-half
(1/2) of the remainder from gross earned income. Any part of the
exclusion allowed in subdivision (2), which has not been deducted from unearned
income, shall be deducted from gross earned income prior to the determination
of net earned income.
(10) A loan
shall not be considered as income in the month of receipt if the written or
verbal loan agreement is legally binding under state law and includes the
following:
(A) The borrower's acknowledgment
of an obligation to repay.
(B) A
timetable and plan for repayment.
(C) The borrower's expressed intent to repay
either by pledging real or personal property or anticipated income.
(d) If the countable
income, as determined in subsection (c), of the household members exceeds the
monthly income standard as set forth in this subsection, the patient is
ineligible for hospital care for the indigent.
| Household Size | Maximum Monthly Income |
| 1 | $544 |
| 2 | $747 |
| 3 | $939 |
| 4 | $1,132 |
| Each additional household member | $193 |
(e)
The income standards specified in subsection (d) shall be adjusted on a
biennial basis beginning in the year 2004, effective for hospitalizations that
begin on and after October 1, 2004. Every two (2) years thereafter, the income
standards shall be adjusted effective October 1. The standards shall be in an
amount equal to seventy-five percent (75%) of the Federal Poverty Income
Guidelines as published in the Federal Register.
