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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 430 Sources of Unearned Income

Determination and Verification of Unearned Income MS Manual 07/01/20 The monthly amount of unearned income must be determined, verified, and included in the budget. Verification will normally be by documentary evidence obtained from the source of the income. Anothermeans of verification may be used if it clearly establishes the source and amount of the income. In addition, if the applicant or recipient is potentially eligible for any benefit, he/she will be required to apply for it and to accept the benefit if found eligible (MS D-110). Verification of his/her application for suchbenefits will be included in the case record. Once the applicant has applied for the benefit, his/her application or reevaluation may be completed, if otherwise eligible. If the applicant refuses to apply within 30 days of his application for any benefit for which he may be eligible, the application will be denied (or case closed).

Types of Unearned Income MS Manual 07/01/20 1. Social Security Benefits Social Security benefits are paid, according to Social Security rules, to a covered wage earner, their spouse or widow/er, and/or their minor children. 2. Reduction of SSA Benefits The withholding from Title II benefits by SSA for the recovery of SSI or SSA overpayments is mandatory. The money withheld will not be considered as available income for the individual’s contribution toward the cost of care in Long Term Services and Supports (LTSS) cases where there is a patient liability. 3. Railroad Retirement Benefits Railroad Retirement Benefits are paid to individuals and spouses covered under the Railroad Retirement Act. An individual may receive both Railroad Retirement and Social Security, if covered under both programs, and the spouse of a Railroad Retirement beneficiary may receive a spouse’s benefit while drawing Social Security. 4. Military Allowances or Allotments 5. Veterans Benefits Only the portion of the VA Benefit attributable to the veteran/surviving spouse will be counted as his/her income. The dependent’s portion of the VA Benefit will be counted as income to the dependent(s). It will be necessary to determine the portion of the VA Benefit that is attributable to the applicant/recipient. Veterans, widows/ers and other