005.01
EARNED INCOME DISREGARDS. Specific portions of earned income are
disregarded in determining eligibility. The amounts below are only disregarded
from the earned income received by the client or a financially responsible
relative and do not apply to unearned income.
005.01(A)
AMERICORPS INCOME.
Income earned by participants in the AmeriCorps program is
disregarded.
005.01(B)
INCOME FROM EMPLOYMENT. Earned income from employment is
disregarded according to the category of eligibility.
005.01(B)(i)
AGED, BLIND, AND
DISABLED (ABD) CLIENTS. For categories of eligibility where age,
blindness, or disability are an eligibility factor, earned income receives the
following disregards:
(1) Aged or disabled
clients deduct $65 from the gross amount of earned income. The remainder is
divided by two to arrive at the countable amount used to determine eligibility;
or
(2) Blind or blind-aged clients
deduct $85 from the gross amount of earned income. The remainder is divided by
two to arrive at the countable amount used to determine eligibility.
005.01(B)(ii)
MEDICALLY NEEDY FAMILIES AND CHILDREN. Medically needy families
and children categories of eligibility are allowed the following disregards
from earned income to determine the countable amount used to determine
eligibility:
(1) One-hundred dollars ($100)
is deducted from the gross amount of earned income of each employed individual
whose income is used to determine eligibility;
(2) Child care expenses as billed or paid are
deducted if the parent whose income is used to determine eligibility requires
child care in order to participate in education, training, or employment;
and
(3) Any earned income of a
child is disregarded.
005.01(C)
EARNED INCOME TAX
CREDITS (EIC). The amount of an individual's earned income tax
credits (EIC) are not counted as income. This includes any advanced earned
income tax credits (AEIC).
005.01(D)
JURY PAY.
Income received from serving on a jury is disregarded.
005.01(E)
INCOME FROM THE
NATIONAL COMMUNITY SERVICE TRUST ACT. Income earned from programs
funded by the National Community Service Trust Act of 1993 are not counted as
income for eligibility. This includes the following programs:
(i) Volunteers in Service to America (VISTA
or AmeriCorps VISTA);
(ii)
University Year for Action;
(iii)
Special and Demonstration Volunteer Programs;
(iv) Retired Senior Volunteer Program
(RSVP);
(v) Foster Grandparent
Program; and
(vi) Senior Companion
Program.
005.02
UNEARNED INCOME
DISREGARDS. The following amounts are deducted from unearned
income in determining eligibility. When a source of income is only disregarded
for a specific category of eligibility, it is noted. These disregards do not
apply to earned income.
005.02(A)
ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNT
DISTRIBUTION. A distribution from a qualified Achieving a Better
Live Experience (ABLE) account is not counted as income if the distribution is
for a qualified disability expense. It is presumed that any distribution is for
a qualified disability expense unless the client reports otherwise or other
information becomes known to the agency.
005.02(B)
BONA FIDE LOANS.
A bona fide, enforceable loan is treated as follows:
005.02(B)(i)
CLIENT AS BORROWER.
When a client has borrowed money which must be repaid, the money
received by the client is not counted as income.
005.02(B)(ii)
CLIENT AS
LENDER. When a client has loaned money to another party, and the
loan is countable as a resource, then the principal portion of the payment is
not considered income. If the loan made to another party would not be
considered a countable resource, then the full amount of the payment is
countable as unearned income. A loan made to a third party where the purpose of
the loan is to make the client eligible for Medicaid is not considered a bona
fide loan, and is countable as a resource. It is the client's responsibility to
show that a loan was not made for the purpose of becoming eligible for
Medicaid.
005.02(C)
CHILD SUPPORT PAYMENTS. One third of the amount of a
child support payment received on behalf of a child eligible due to blindness
or disability is disregarded from the income of the blind or disabled
child.
005.02(D)
COMPENSATION PAYMENTS. Payments that a client receives as
compensation due to various circumstances are treated according to the
provisions below.
005.02(D)(i)
AGENT ORANGE. Payments made from the fund created by
manufacturers of Agent Orange due to product liability are disregarded as
income.
005.02(D)(ii)
CERTAIN CHILDREN OF VETERANS. Veterans' Affairs (VA) payments made
to the children of veterans who served in Vietnam and Korea who were born with
spina bifida and children born to women veterans who served in Vietnam who have
certain birth defects are disregarded as unearned income.
005.02(D)(iii)
CERTAIN
HEMOPHILIA PATIENTS. Payments made to hemophilia patients from
any fund established by the Susan Walker v. Bayer Corporation et al. who are
infected with human immunodeficiency virus (HIV) are disregarded as unearned
income.
005.02(D)(iv)
RADIATION EXPOSURE COMPENSATION FUND. Payments made to victims
under the Radiation Exposure Compensation Fund are disregarded as unearned
income.
005.02(D)(v)
VICTIMS OF CRIME. Payments made by a state or local government to
compensate crime victims are disregarded as unearned income.
005.02(D)(vi)
VICTIMS OF NAZI
PERSECUTION. Payments made to victims of Nazi persecution made by
any country are disregarded as unearned income.
005.02(E)
EDUCATIONAL
ASSISTANCE. Assistance paid to clients for higher education is
treated according to the provisions below.
005.02(E)(i)
GRANTS,
SCHOLARSHIPS, FELLOWSHIPS, AND GIFTS. Any portion of a grant,
scholarship, fellowship, or gift used to pay for tuition, fees, or other
necessary educational expenses is disregarded from income. Any portion used to
pay for other expenses is counted as unearned income.
005.02(E)(ii)
ASSISTANCE UNDER
THE HIGHER EDUCATION ACT OR BUREAU OF INDIAN AFFAIRS. All
assistance received from the Bureau of Indian Affairs (BIA) or paid under the
Higher Education Act of 1965 is disregarded as unearned income. Programs under
the Higher Education Act of 1965 include:
(1)
Pell grants;
(2) State student
incentives;
(3) Academic
achievement incentive scholarships;
(4) Byrd Scholars;
(5) Federal supplemental educational
opportunities grants;
(6) Federal
educational loans;
(7) Upward
Bound;
(8) Gaining early awareness
and readiness for undergraduate programs (GEARUP);
(9) Leveraging educational assistance
partnership (LEAP);
(10) Special
leveraging educational assistance partnership (SLEAP); or
(11) Work-study programs.
005.02(E)(iii)
VETERANS AFFAIRS EDUCATION BENEFITS.
The Department of Veterans' Affairs (VA) has several types of
education assistance programs available for veterans, spouses, or the children
of veterans. Regardless of the type of educational program paying benefits, any
portion of a payment which is used to pay for tuition, fees, or other necessary
educational expenses is disregarded as unearned income. Any portion of the
payment not used for such expenses is countable as unearned income.
005.02(E)(iv)
MEDICALLY NEEDY FAMILIES AND CHILDREN. For medically needy family
and children programs, the full amount of any grant, scholarship, or fellowship
is disregarded as income.
005.02(F)
INTEREST INCOME.
Interest earned on excluded accounts, investments, and burial funds is not
counted as income. Any countable interest earned has $10 per month per source
disregarded in determining eligibility.
005.02(G)
MEDICAL SERVICES.
Medical services received at no cost to the client are not
considered income. Medical services include diagnostic, preventative,
therapeutic, or palliative care proved at no cost; prescription drugs;
eyeglasses; prosthetics; durable medical equipment; service animals and
supplies; or vehicle modifications.
005.02(H)
NEEDS BASED
ASSISTANCE. Assistance received by a client which is wholly funded
by a state or local government or provides basic food and shelter and is
determined by financial need is not counted in determining eligibility. This
includes the following:
(i) General
assistance;
(ii) Supplemental
Nutritional Assistance Program (SNAP) benefits;
(iii) Housing assistance;
(iv) Energy assistance including Low Income
Home Energy Assistance Program (LIHEAP);
(v) Crisis assistance payments; or
(vi) Home modification or
weatherization.
005.02(I)
OLDER AMERICANS ACT
PAYMENTS. Payments or services received pursuant to the Older
Americans Act are not considered income. These may include nutrition services,
legal assistance, or health services. Income paid as wages or salaries for a
program under the Older Americans Act is considered earned income and
counted.
005.02(J)
RELOCATION ASSISTANCE. Relocation costs paid by an employer as an
inducement to an employee are countable as income. Relocation costs paid by a
local, state, or federal government as assistance are not counted as income.
These costs may include:
(i) Moving
expenses;
(ii) Reimbursement for
losses of property;
(iii)
Displacement allowances;
(iv)
Rental expenses due to displacement;
(v) Direct provision of housing; or
(vi) Expenses for closing costs on a
replacement dwelling.
005.02(K)
SOCIAL SECURITY
BENEFITS. In certain instances, all, or a portion of, a client's
Social Security income is not used in determining eligibility.
005.02(K)(i)
SUPPLEMENTAL
SECURITY INCOME (SSI). Supplemental Security Income (SSI)
benefits are not used in determining eligibility. A recipient of Supplemental
Security Income (SSI) benefits is considered categorically eligible to receive
Medicaid.
005.02(K)(ii)
FORMER SUPPLEMENTAL SECURITY INCOME (SSI) RECIPIENTS.
Certain former recipients of Supplemental Security Income benefits continue to
be considered receiving the Supplemental Security Income benefit for the
purposes of receiving Medicaid. An individual must meet all of the specific
criteria in order to receive the corresponding income disregard.
005.02(K)(ii)(1)
DISABLED EARLY
WIDOWS OR WIDOWERS. These individuals are also referred to as
additional reduction factor (ARF) widows or widowers. The amount or increase in
Title II benefits are not counted if all of the following are met:
(a) Have been determined disabled;
(b) Were receiving Supplemental Security
Income (SSI) in December, 1983 and lost Supplemental Security Income (SSI)
benefits in January, 1984 due to the elimination of a benefit reduction factor
for widows or widowers before the attainment of age 60;
(c) Have been continuously entitled to the
Title II widow or widowers benefit based on disability since January,
1984;
(d) Applied for benefits
under this group prior to July 1, 1988 or a later date established under the
court order in Darling v. Bowen; and
(e) Would continue to be eligible for
Supplemental Security Income (SSI) benefits, including the resource standard,
if the client had not received the increase in Title II benefits.
005.02(K)(ii)(2)
DISABLED ADULT CHILDREN (DAC). This population is also known as
childhood disability beneficiaries (CDB). The amount or increase in Title II
benefits received from a parent's claim is not counted if all of the following
are met:
(a) Lost Supplemental Security
Income (SSI) status after November 10, 1986 due to the mandatory receipt or
increase in Title II benefits on a parent's record due to the retirement,
death, or disability of the parent;
(b) Are age 18 or older;
(c) Blindness or disability began before age
22; and
(d) Would continue to be
eligible for a Supplemental Security Income (SSI) payment, including the
resource standard, if they were not receiving the Title II disabled adult child
benefit.
005.02(K)(ii)(3)
SECTION 503
GROUP. This population is commonly referred to as the Pickle
Amendment Group. Title II cost-of-living increases beginning the month before
the month in which Supplemental Security Income (SSI) benefits ended if all of
the following factors are met:
(a) Is
currently receiving Title II income;
(b) Was eligible for and receiving
Supplemental Security Income (SSI) benefits concurrently with Title II income
for at least one month after April 1, 1977; and
(c) Lost Supplemental Security Income (SSI)
benefits, but would continue to receive it, including the resource standard, if
the amount of cost-of-living increases received from Title II income after the
month in which Supplemental Security Income (SSI) benefits were lost were
deducted from the current Title II benefit. The cost-of-living increases
include the increases received by the individual, the individual's spouse, or a
financially responsible family member.
005.02(K)(ii)(4)
EARLY WIDOWS OR
WIDOWERS. This population is also known as COBRA widows or
widowers. The amount received from Title II benefits is deducted in determining
eligibility if all of the following factors are met:
(a) Lost Supplemental Security Income (SSI)
benefits due to the mandatory receipt of Title II benefits;
(b) Is not yet eligible for Medicare Part
A;
(c) Has attained age 50, but is
not yet age 65; and
(d) Would
continue to be eligible for Supplemental Security Income (SSI) if not receiving
Title II benefits.
005.02(K)(iii)
DELAYED
COST-OF-LIVING ADJUSTMENT (COLA). In determining countable income
for aged, blind, or disabled recipients whose eligibility is determined by a
comparison to the federal poverty line (FPL), the amount of Retirement,
Survivors, or Disability Insurance (RSDI) increase received from the annual
cost-of-living adjustment is not counted until the month after the month in
which the annual revision to the federal poverty line (FPL) is published. This
applies only to the Retirement, Survivors, or Disability Insurance (RSDI)
benefits. A cost-of-living adjustment to another source of income continues to
be counted in the first month it is received.
005.02(L)
VETERANS' PAYMENTS.
The amount received by a veteran or their spouse as an Aid and
Attendance benefit while in a nursing facility is not counted as income or used
when determining the share of cost due to the facility.
005.02(M)
WINNINGS AND
DIVIDENDS. Gambling and gaming winnings and countable dividends
have $10 per month per source of the income disregarded in determining
eligibility. The winnings or dividends are considered income in the month of
receipt or report subject to adequate and timely notice requirements.
005.03
GENERAL INCOME
DISREGARDS. General income disregards are not specific to earned
or unearned income. Such disregards may apply to either earned, unearned, or
both, as appropriate.
005.03(A)
$20 GENERAL DISREGARD. The first $20 of income is not counted in
determining eligibility. The disregard is applied first to any unearned income.
Any remaining amount is applied to earned income. This disregard is only used
once in the assistance unit, regardless of the number of individuals in the
unit.
005.03(B)
MEDICAL INSURANCE PREMIUMS. The amount paid for private health
insurance premiums is deducted from countable income in determining
eligibility. The client or a financially responsible relative must be
responsible for payment of the premium. The insurance policy must be a health
insurance policy which pays for medical services or treatments, and the amount
of income producing policies does not receive this income deduction. This
deduction is not used for Medicare premiums. This disregard does not apply to
individuals eligible as medically needy. For medically needy individuals, the
amount of health insurance premiums is deducted from any share of cost
due.
005.03(C)
NATIVE
AMERICAN INCOME. Certain types of income received by Native
Americans are disregarded, in whole or in part, when determining Medicaid
eligibility. Multiple statutes exclude this income from Medicaid eligibility.
In some cases, an income type may be specific to a certain tribe or activity.
If an income source is identified or alleged which is not listed below, then
submit the income for review to determine whether an exclusion exists.
005.03(C)(i)
INDIAN JUDGMENT
FUNDS DISTRIBUTION ACT. Per capita distribution payments made to
tribal members who are due judgment funds after October 19, 1973 according to a
plan of the Secretary of the Interior are excluded.
005.03(C)(ii)
DISTRIBUTION OF
JUDGMENT FUNDS. Distributions after January 12, 1983 of judgment
funds held in trust or distributed per capita are excluded from income. This
includes any interest or investment income accrued while the funds were held in
trust.
005.03(C)(iii)
PER CAPITA ACT. Any funds held in trust distributed after August
2, 1983 by the Secretary of the Interior to tribal members are excluded from
income.
005.03(C)(iv)
ALASKA NATIVE CLAIMS SETTLEMENT ACT. Stock, a partnership
interest, an interest in land, or an interest in a settlement trust for Alaskan
Natives are excluded. Up to $2,000 received in income from a native corporation
is excluded.
005.03(C)(v)
INCOME FROM RESTRICTED LANDS. Up to $2,000 per year
is excluded from income from individual interests or trust interests if the
income is derived from restricted lands.
005.03(D)
PLAN TO ACHIEVE
SELF-SUPPORT (PASS). Income used to meet a goal for the Plan to
Achieve Self-Support (PASS) program is disregarded in determining Medicaid
eligibility. This may be earned or unearned income. The Plan to Achieve
Self-Support (PASS) program is administered by the Social Security
Administration (SSA). The amount of income to be disregarded due to
participation in this program will need to be verified with the Social Security
Administration (SSA) when determining Medicaid eligibility.
005.03(E)
TAX RETURNS.
The amount received by an individual as a tax return is not
counted as income.
005.04
LONG-TERM CARE EXCEPTION.
When a client resides in a medical facility, any income
disregarded in determining eligibility is used in determining the amount of the
share of cost due. Medical facilities include nursing facilities, skilled
nursing facilities, intermediate care facilities for the developmentally
disabled, or hospitals.