Nebraska Administrative Code
Topic - HEALTH AND HUMAN SERVICES SYSTEM
Title 469 - ASSISTANCE TO THE AGED, BLIND, OR DISABLED PROGRAM
Chapter 2 - ELIGIBILITY REQUIREMENTS
Section 469-2-010 - INCOME
Universal Citation: 469 NE Admin Rules and Regs ch 2 ยง 010
Current through September 17, 2024
Need is determined by considering the amount of total net income of the Aged, Blind or Disabled or State Disability Program individual, and spouse or other essential person whose needs are included in the budget, in relation to individual requirements.
010.01 DEFINITION OF INCOME. Income is defined as gain or recurrent benefit received in money, or in-kind, from employment, business, property, investments, gifts, benefits, or annuities, at regular, or irregular, intervals of time.
010.01(A)
AVAILABILITY. All income, whether earned, or unearned,
is considered if received and currently available for the use of the
individual.
010.01(B)
TYPES OF INCOME.
010.01(B)(i)
EARNED
INCOME. Earned income is money received from wages, tips, salary,
commissions, profits from activities in which an individual is engaged as a
selfemployed person or as an employee, or items of need received at no cost in
lieu of wages.
010.01(B)(i)(1)
EMPLOYMENT-RELATED REIMBURSEMENT. Reimbursement for
employment-related expenses such as mileage, lodging, or meals is not
considered earned income.
010.01(B)(i)(2)
CONTRACTUAL
INCOME. Income paid on a contractual basis is prorated over the
number of months covered under the contract, even if the recipient is paid in
fewer months than the contract covers.
010.01(B)(i)(3)
IN-KIND
INCOME. In-kind income is the value of food, clothing, shelter, or
other items received in lieu of wages.
010.01(B)(i)(4)
DISREGARDS FOR
SELF-EMPLOYMENT. Operating expenses related to producing the goods
or services, and without which the goods or services could not be produced, are
deducted from gross income. Operating expenses may include:
(a) Cost of goods sold;
(b) Advertising;
(c) Bad debts from sales or
services;
(d) Bank service
charges;
(e) Car and truck
expenses;
(f) Commission;
(g) Employee benefit programs;
(h) Freight or shipping costs;
(i) Insurance;
(j) Interest on business
indebtedness;
(k) Laundry and
cleaning;
(l) Legal and
professional services;
(m) Office
supplies and postage;
(n) Rent on
business property;
(o) Repairs and
maintenance;
(p)
Supplies;
(q) Utilities and
telephone;
(r) Wages; and
(s) Transportation other than to and from
work and child care.
010.01(B)(i)(5)
OPERATING
EXPENSES - FARM INCOME. The following expenses related to farm
income are considered operating expenses:
(i)
Cost of goods sold;
(ii) Cost of
labor;
(iii) Repairs and
maintenance;
(iv)
Interest;
(v) Rent of farm,
pasture;
(vi) Feed
purchased;
(vii) Seeds, plants
purchased;
(viii) Fertilizers,
lime, and chemicals;
(ix) Cost of
machines leased;
(x) Supplies
purchased;
(xi) Breeding
fees;
(xii) Veterinary fees,
medicine;
(xiii) Gasoline, fuel, or
oil;
(xiv) Storage,
warehousing;
(xv)
Insurance;
(xvi)
Utilities;
(xvii) Freight,
trucking;
(xviii) Conservation
expenses;
(xix) Land clearing
expenses; and
(xx) Employee benefit
programs.
010.01(B)(i)(5)(a)
OPERATING EXPENSES NOT ALLOWED. The following expenses
are not allowed as operating expenses:
(i)
Depreciation;
(ii) Personal
business expenses such as subscriptions, dues to professional organizations and
unions, training courses;
(iii)
Personal transportation;
(iv)
Purchase of capital equipment;
(v)
Payments on the principal of loans; and
(vi) Business-related entertainment
expenses.
010.01(B)(i)(5)(b)
1040 TAX
DOCUMENT VERIFICATION. If the 1040 tax document is used to verify
income, do not allow depreciation as a cost of operation and do not count
capital gains and other gains from lines 13, 14, and 15 of Form 1040 as
income.
010.01(B)(i)(5)(c)
OFFSET OF EARNINGS. If an individual has a combination
of farm or self-employment income and regular earned income, the regular
earnings may be offset with a loss from the self-employment or farm
operation.
010.01(B)(ii)
UNEARNED
INCOME. Unearned income includes but is not limited to:
(a) Retirement, Survivors, and Disability
benefits;
(b) Railroad
Retirement;
(c) Child
support;
(d) Military service
benefits;
(e) Civil service
benefits;
(f) Unemployment
compensation;
(g) Gifts;
(h) Disability insurance benefits;
(i) Disability benefits paid by an employer,
not including sick leave; and
(j)
Returns from securities or investments, such as stocks, bonds, annuities, or
savings, in which the individual is not actively engaged.
010.01(B)(ii)(1)
SUPPLEMENTAL
SECURITY INCOME BENEFITS. Supplemental Security Income benefits
are not used in computing the budgets, but the Federal Benefit Rate is used by
the system to calculate the amount of the state supplemental payment.
010.01(B)(ii)(2)
CONTRIBUTIONS. Contributions are verified payments
which are paid to or for the unit. Contributions received regularly to aid in
the support of the recipient, either in the form of money payments or items of
need, are considered unearned income.
010.01(B)(ii)(2)(a)
TEMPORARY
CRISIS ASSISTANCE. In determining initial eligibility only, a
contribution is not counted when the applicant states that:
(i) The individual has no income and has been
forced to share a living arrangement with a self-supporting individual;
or
(ii) An individual who is not in
the household is paying the applicant's shelter costs; and
(iii) The applicant plans to make other
arrangements such as move, pay all or a share of the expenses, as soon as the
applicant has income.
010.01(B)(ii)(2)(b)
NURSING
FACILITY, ASSISTED LIVING WAIVER, OR HOSPITAL CARE. Contributions
to, or for, an individual who is receiving nursing facility, Assisted Living
Waiver, or hospital care are considered unearned income in the applicant or
recipient's budget if Medicaid is or will be paying any part of the nursing
facility, Assisted Living Waiver, or hospital care.
010.01(B)(ii)(3)
LIFE INSURANCE
PREMIUMS. Payment of premiums on small protective life insurance
policies is not considered a contribution.
010.01(B)(ii)(4)
HEALTH INSURANCE
PREMIUMS. Payment of a health insurance premium by another
individual is not considered a contribution as long as the premium is paid to
the insurance company, not to the individual.
010.01(B)(ii)(5)
THIRD PARTY
MEDICAL PAYMENTS. Income received from a third party that pays the
applicant or recipient directly is:
(i)
Disregarded if it is refunded to the provider or the Department as
reimbursement for a specific service; or
(ii) Counted as unearned income if the
recipient fails or refuses to refund these payments.
010.01(B)(ii)(5)(a)
INCOME-PRODUCING POLICIES. Income received from an
insurance policy that supplements the applicant or recipient's income is
treated as unearned income. These policies provide income regardless of the
type of service being provided or the condition of the applicant or recipient.
If it is verified that the income was applied to medical bills, the income is
not counted in the applicant or recipient's budget.
010.01(B)(ii)(6)
INHERITANCE AND
GIFTS. If the applicant or recipient receives a gift or
inheritance, it is considered unearned income in the month of receipt or
report, and is used in the budget the first month possible, considering timely
notice. Any unspent remainder is considered a resource in the following
month.
010.01(B)(ii)(7)
LIFE ESTATE OR LAND CONTRACT INCOME. If an applicant
receives periodic life estate or land contract income annually, semi-annually
or quarterly, and the last periodic payment has been spent before the
application, the life estate or land contract income may be considered
unavailable and not counted in the budget. When the application is approved
notify the recipient that receipt of the next payment must be reported within
ten days and that the life estate or land contract income must then be counted
in the budget.
010.01(B)(iii)
IRREGULAR
INCOME. Irregular income is income, earned or unearned, which
varies in amount from month-to-month or which is received at irregular
intervals. This may be due to irregular employment, but even when an individual
works regularly, the income may be irregular because of factors such as
seasonal increases or decreases in employment and earnings, such as day labor,
sales work on a commission basis, or child care.
010.01(B)(iv)
ACCUMULATED BENEFIT
PAYMENTS. Accumulated payments of Retirement, Survivors, and
Disability Insurance; Railroad Retirement; Veteran's Benefits or Pensions;
Worker's Compensation; or other benefit payments which are received in a single
sum are not considered income. Any unspent remainder is considered a resource
in the month following the month of receipt, or report, taking into account the
timely notice provision.
(1) Exception: The
unspent portion of a Retirement, Survivors, and Disability Insurance;
Supplemental Security Income; or state supplemental retroactive payment is
excluded for six months following the month of receipt.
010.01(B)(v)
COMBINED CASE WITH A
LUMP SUM. When an individual in an Aid to Dependent Children case
or an individual in an Assistance Aged, Blind, or Disabled case receives a lump
sum, the way the money is treated depends upon which individual the lump sum is
intended for. Retirement, Survivor, Disability Insurance and Supplemental
Security Income lump sums are excluded as a resource for up to six months.
010.01(B)(v)(1)
ASSISTANCE AGED,
BLIND, OR DISABLED PARENT AND AID TO DEPENDENT CHILDREN CHILD. If
the lump sum is intended for an Aged, Blind, or Disabled parent, the money is
considered for the parent. The following month the money becomes a resource and
must be divided proportionately between the cases.
010.01(B)(v)(2)
ASSISTANCE TO THE
AGED, BLIND, OR DISABLED CHILD AND AID TO DEPENDENT CHILD PARENT.
If the lump sum is intended for a Blind or Disabled child, the money is
considered for the child. As the child does not have relative responsibility
for other members of the family, the money is considered only for the child's
Blind or Disabled case.
010.01(B)(vi)
POTENTIAL
INCOME. Potential income is defined as income based on
entitlement, or need, which is usually determined by an administering agency as
a result of an application for benefits by the individual. Potential income
includes, but is not limited to, Retirement, Survivors, Disability Insurance,
categorical assistance, Railroad Retirement, Veterans or Military Service
benefits, Unemployment Compensation, Disability Insurance benefits, and
Worker's Compensation. Medicare is not considered a potential benefit.
010.01(B)(vi)(1)
NEED TO APPLY
AND COMPLY WITH REQUIREMENTS. A recipient is expected to make
grant application for, and accept benefits, immediately after the recipient is
notified of the apparent entitlement to the benefits. The recipient is notified
on a Notice of Action of the number of days left in which to apply.
010.01(B)(vi)(2)
VETERAN'S
BENEFITS. Applicants or recipients who are veterans, their
spouses, and the widows of veterans may be eligible for Aid and Attendant
services. This service may be available and should be explored if the
individual resides in a nursing home, in his or her own home, in an Adult
Foster Home or other alternate arrangement when the individual requires aid
with daily living activities.
010.01(B)(vi)(3)
SUPPLEMENTAL
SECURITY INCOME PROGRAM. If an applicant or recipient has not
applied for Supplemental Security Income Program, an application must be filed
immediately.
010.01(B)(vi)(3)(a)
SUPPLEMENTAL SECURITY INCOME REFERRAL. An applicant or
recipient must be referred to Supplemental Security Income if:
(i) The individual lives alone and has
monthly unearned income less than the referral amount for an
individual;
(ii) An eligible couple
are living together and have monthly unearned income less than the referral
amount for a couple; both must apply for Supplemental Security Income;
or
(iii) An individual is in a
nursing home and has unearned income of less than $50 per month.
010.01(B)(vii)
SCHOOL DISTRICT
PAYMENTS. If a school-aged child is receiving nursing home care,
including an Intermediate Care Facility, Intermediate Care Facility for
Developmental Disability, Skilled Nursing Facility, or chronic care, and the
school district is contracting with the facility in providing the child's
educational needs, the school district payment is disregarded as income if the
payment is designated for educational services only.
(1) If any or all of the school district
payment is for residential services, that portion must be shown as Payment on
Services.
(2) If the school-aged
child resides in a board and room or other alternative care facility, determine
if the school provides payment for the child's board and room.
(3) If payment is being made to the facility,
the payment is disregarded as income.
010.01(B)(viii)
VERIFICATION OF
INCOME. Income must be verified every 12 months.
010.01(B)(viii)(1)
PROSPECTIVE
BUDGETING. An average of the most recent three months' actual
income is used to arrive at the gross income amount for the income period. This
figure is used to project medical eligibility for the next 12 months unless:
(i) There was a significant change in the
income of the previous three months; or
(ii) A significant change is anticipated
during the projected 12-month period.
(iii) Income is stable and only one month's
income must be used.
(iv) Income
fluctuates and an average of the three most recent consecutive months must be
used.
010.01(B)(viii)(1)(a)
CHANGE. The recipient must report the following
changes:
(i) New employment must be reported
to the Department and if receiving Supplemental Security Income to Social
Security Administration within 10 days;
(ii) Termination of employment;
(iii) Change in the amount of monthly income,
including:
(1) All changes in unearned
income, including the beginning and termination of unearned income;
and
(2) Changes in the source of
employment, in the wage rate, and in employment status, such as part-time to
full-time, or fulltime to part-time. The recipient must report new employment
within ten days of receipt of the first paycheck, and a change in wage rate or
hours within ten days of the change.
(3) Change in household composition, such as
the addition or loss of a unit member; or
(4) Change, or receipt of, a resource
including cash on hand, stocks, bonds, money in a checking or savings account,
or a motor vehicle.
010.01(B)(ix)
RETROACTIVE STATE
DISABILITY PROGRAM MEDICAL ELIGIBILITY. To determine retroactive
State Disability Medical Program eligibility, the month's actual income is
used.
010.01(B)(x)
INCOME AS IT APPLIES TO RESOURCES. Income received by
a recipient during any one month for maintenance costs may not be considered a
resource for that month. Any income not spent for maintenance is considered a
resource in the subsequent month.
010.01(B)(xi)
COMPUTATION OF
INCOME AND INCOME DISREGARDS. The following list allowable income
disregards:
010.01(B)(xi)(1)
GENERAL $20 DISREGARD. Every unit receives a $20
income disregard. A married couple who is living together and budgeted together
is considered a household unit and gets one $20 disregard. The income disregard
is applied to unearned income first; any remainder is subtracted from earned
income for:
(a) Recipients who are receiving
Assisted Living Aged and Disabled Waiver services receive the $20
disregard.
(b) Recipients who are
living in a nursing home, public institution, hospital or other medical
institution, do not receive a $20 disregard.
010.01(B)(xi)(2)
EARNED INCOME
DISREGARDS. The amount deducted from adjusted gross earned income
or the amount after deduction of the cost of operation if self-employment
income, and the remainder of the general disregard from wages or
self-employment, for each unit is as follows:
010.01(B)(xi)(2)(a)
AGED OR
DISABLED RECIPIENTS. The earned income disregards apply to:
(1) Aged or disabled individuals;
(2) The aged, blind, or disabled
recipients;
(3) Ineligible
spouse;
(4) Essential person;
or
(5) Sponsors of aliens for
deeming purposes.
010.01(B)(xi)(2)(a)(i) Disregard the first
$65 plus one-half of the remainder in determining countable income.
010.01(B)(xi)(2)(b)
BLIND OR BLIND AGED RECIPIENTS. Determine net income
for blind or blind aged recipients by disregarding the first $85 plus one-half
of the remainder.
010.01(B)(xii)
DEEMING INCOME OF
RESPONSIBLE PERSONS. Income of the following individuals is
considered in determining a recipient's eligibility when they do not receive
Supplemental Security Income:
(a) Parent for
child age 17 or younger and still considered part of the household;
and
(b) Sponsor for an alien.
010.01(B)(xii)(1)
PARENT. If the individual does not receive
Supplemental Security Income the following guidelines must be used to determine
if the parent income is deemed:
(a) If the
minor is living in the same household with parent, the parent's income must be
deemed.
(b) If the minor is
temporarily absent from the home but is still considered part of the household,
the parent's income must be deemed. Temporary absence includes, but is not
limited to, school attendance where the minor returns to the home on a regular
basis such as weekends, vacations, or summers.
(c) If the minor is permanently out of the
home and no longer considered part of the household, the parent's income must
not be deemed. This includes facilities for persons with developmental
disabilities or mental illness.
010.01(B)(xii)(2)
EXCEPTIONS TO
THE DEEMING REGULATIONS. If a child age 17 or younger leaves a
nursing facility or hospital where that child was receiving an institutional
personal needs amount payment from Supplemental Security Income, then goes home
under a waiver, the Social Security Administration must be notified of the
waiver eligibility. Even though income and resources of the parent may make the
child ineligible for State Supplemental Income, if the child is
waiver-eligible, Supplemental Security Income continues the institutional
personal needs payment amount without deeming income and resources of the
parent.
010.01(B)(xii)(3)
DEEMING OF INCOME OF SPONSORS OF ALIENS. One-hundred
percent of the income and resources of a sponsor, and sponsor's spouse if they
are living together, must be considered when determining the eligibility of an
eligible alien who applies for Assistance to the Aged, Blind, or Disabled
payment or State Disability Program if the sponsor has signed an affidavit of
support under Section 213A of the Immigration and Nationality Act. The
sponsor's income and resources will be considered available to the alien until
the alien:
(1) Becomes a U.S.
citizen;
(2) Has worked 40
qualifying quarters of coverage as defined under Title II of the Social
Security Act or can be credited with the qualifying quarters as provided under
Section 435 and the alien did not receive any federal means tested public
benefit during that time period.
010.01(B)(xii)(3)(a)
DEFINITION
OF A SPONSOR. A sponsor is an individual who:
(i) Is a citizen or national of the United
States or an alien who is lawfully admitted to the United States for permanent
residence;
(ii) Is 18 years of age
or older;
(iii) Lives in any of the
50 states or the District of Columbia; and
(iv) Is the person petitioning for the
admission of the alien under Section 204 of the Immigration and Nationality
Act.
(v) An organization is not
considered a sponsor.
010.01(B)(xii)(3)(b)
ALIEN
DUTIES. As an eligibility requirement, the alien is responsible
for:
(i) Providing income and resource
information from the sponsor; and
(ii) Obtaining the necessary cooperation from
the sponsor.
(iii) If the alien
does not provide the necessary information, they are not eligible for
assistance.
010.01(B)(xii)(3)(c)
SPONSOR OF
MORE THAN ONE ALIEN. When an individual is a sponsor for two or
more aliens who are living in the same home, the amount of deemed income and
resources of the sponsor, and the sponsor's spouse if living with the sponsor,
is divided equally among the aliens.
(i) When
an individual sponsors several aliens but not all apply for assistance, the
sponsor's total deemable income and resources are applied to the needs of the
aliens who apply for assistance.
010.01(B)(xii)(3)(d)
DEEMING
EXCEPTION. If a sponsored immigrant demonstrates that they or
their children have been battered or subjected to extreme cruelty by a spouse
or a parent or by a member of the spouse's or parent's family who is residing
in the same household as the alien, deeming may be waived if a judge,
administrative law judge, or Immigration and Naturalization recognize the
battery or cruelty.
010.01(B)(xiii)
COMPUTATION OF
NET INCOME.
010.01(B)(xiii)(1)
INCOME DISREGARDED. Income disregarded for the
Assistance to the Aged, Blind, or Disabled Payment or State Disability Program
recipient is not considered in determining the eligibility of or the amount of
assistance for the recipient or any other individual. Savings from disregarded
income are considered the same as assets accumulated from any other
source.
010.01(B)(xiii)(2)
INCOME TAXES PAID. Income taxes that are paid on
unearned income are not deducted from the income for budgeting
purposes.
010.01(B)(xiii)(3)
GARNISHMENTS AND OVERPAYMENTS. If income, earned or
unearned, is being garnished, the garnishment is not deducted from income in
the budgeting process. If unearned income is being reduced because of a
previous overpayment, the amount of the benefit before the deduction of the
overpayment is considered as income.
010.01(B)(xiii)(4)
OFFSET OF
EARNINGS. If a recipient has a combination of farm,
self-employment, and regular earned income, a loss from one source of income
may be used to offset a gain from another source.
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