Current through Register Vol. 47, No. 6, September 18, 2024
This rule describes the treatment of income, as defined at rule
801-10.1
(35D), in the computation of member support as described at rule
801-10.14
(35D).
(1) For members who are
eligible for Title XIX medical assistance, rule
441-75.5
(249A) shall apply. For those members participating in the Title XIX medical
assistance program, the difference between the $140 personal needs allowance
and the Title XIX personal needs allowance shall be returned to the member out
of individual member participation.
(2) For members who are not eligible for
Title XIX, the following shall apply:
a. The
following types of income are exempt in the computation of member support:
(1) The earned income of the spouse or
dependents.
(2) Unearned income
restricted to the needs of the spouse or dependents (social security, DVA,
etc.).
(3) Any other income that
can be specifically identified as accruing to the spouse or
dependents.
(4) Nonrecurring gifts,
contributions or winnings, not to exceed $60 in a calendar quarter.
(5) Interest income of less than $20 per
month from any one source.
(6)
State bonus for military services.
(7) Any earnings received by a member for
that member's participation in money-raising activities administered by
veterans' organizations or auxiliaries (i.e., poppies).
(8) Any money received by a member from the
sale of items resulting from a therapeutic activity (i.e., items sold in the
IVH gift shop).
(9) The first $150
received by a member in a month for participation in the incentive therapy or
other programs as described in rule
801-10.30
(35D), for members in the domiciliary level of care. For members in the nursing
level of care, the first $75 shall be exempted.
(10) Personal loans.
(11) In-kind contributions to the
member.
(12) Title XIX
payments.
(13) Yearly DVA
compensation clothing allowance for those who qualify.
(14) Other income as specifically exempted by
statute.
(15) Any income similar in
its origin to the assets excluded in subparagraphs
10.16(2)"a"(6) and (7).
(16) Income from employment as outlined in
the IVH discharge planning policy (IVH policy #265).
b. Personal needs allowance. All members
shall have an amount exempted from their monthly income intended to cover the
purchase of clothing and incidentals.
(1) All
income up to the first $140 shall be kept as a personal needs
allowance.
(2) The personal needs
allowance shall be subtracted from the member's income prior to determination
of moneys to which the spouse may be entitled.
c. Any type of income not specifically
exempted shall be considered for the payment of member support as provided in
rule
801-10.14
(35D).
d. Determining income from
property.
(1) Nontrust property. Where there
is nontrust property, income paid in the name of one person shall be available
only to that person unless the document providing income specifies differently.
If payment of income is in the name of two persons, one-half is attributed to
each. If payment is in the name of several persons, the income shall be
considered in proportion to their ownership interest. If the member or spouse
can establish different ownership by a preponderance of evidence, the income
shall be divided in proportion to the ownership.
(2) Trust property. Where there is trust
property, the payment of income shall be considered available as provided in
the trust. In the absence of specific provisions in the trust, the income shall
be considered as stated above for nontrust property.
e. The amount of income to consider in the
computation of member support shall be as follows:
(1) Regular monthly pensions and
entitlements. The amount of income to be considered is the gross amount of the
monthly entitlement or pension received less any medical insurance premium
deductions.
(2) Investments or
nonrecurring lump sum payments. Net unearned income from investments or
nonrecurring lump sum payments shall be determined by deducting
income-producing costs from the gross unearned income. Income-producing costs
include, but are not limited to, brokerage fees, property manager's salary,
maintenance costs and attorney fees.
(3) Property sold on contract. The amount of
income to consider shall be the amount received minus any payments for
mortgage, taxes, insurance or assessments still owed on the property and
payable by the contract holder.
(4)
Earned income from a rental, sole or partnership enterprise. The amount of
income to consider shall be the net profit figure as determined for the
Internal Revenue Service on the member's income tax return.
EXCEPTION: The deductions of the previous year's state and
federal taxes and depreciation on the income tax return are not allowable
deductions for the purpose of the computation of member support. If a tax
return is not available, the member or legal representative shall provide all
information and verification needed in order to correctly compute member
support.
(5) Partnership
income. The member's share of the net profit shall be determined in the same
manner as the partnership percentage as determined for the Internal Revenue
Service's purposes.
(3) Member income diversion to dependent
spouse not living at IVH. A portion of the member's income shall be diverted to
the spouse according to the following:
a.
Spouse living in the community. One-half the income in exclusion of an amount
equal to aid and attendance and after reduction of personal needs
allowance.
b. Spouse permanently in
another nursing home. Member shall be treated as single. If the member is in
receipt of a DVA pension, the amount of income provided the spouse would be the
DVA pension dependency amount.
c.
Spouses living in a residential care facility. Spouses shall be treated under
the same rules as a spouse living in the community in accordance with paragraph
10.19(3) "a. "
d. All current court
order proceedings and guardian/conservatorship appointments regarding financial
obligations shall be honored.
(4) Income disbursements.
a. All diversions to spouse or valid court
orders shall be mailed or sent electronically as designated or on a monthly
basis.
b. All checks or electronic
payments shall be sent to the proper recipient no later than the eighth day of
any given month or, at IVH's option, five business days after the member's last
income deposit for that month.
c.
Monthly income disbursements to a community spouse may be delayed or canceled
if there is an overdue amount owed for support payments.