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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 451 Assets Disregarded as Income

1. Credit disability insurance payments made on home or automobile loans. 2. Personal services performed for the individual (mowing grass, house cleaning, etc.). 3. Funds received from any source for the repair or replacement of lost, damaged or stolen goods (Refer to MS E-530 #4 for resource consideration). 4. The sale of a resource (proceeds continue to be a resource) does not constitute income, but does represent a change in form of a resource. 5. Benefits received under other federal programs (Disaster Relief Program, Child Nutrition Act, etc.). 6. Dividends from insurance policies are not counted as income in determining eligibility, but are counted in determining net income for LTSS patient liability. 7. VA Aid and Attendance payments in the full amount (i.e., not reduced to $90) are excluded in making initial eligibility determinations and are also excluded as income to be applied to the vendor payment in a nursing or ICF/IID facility. 8. VA pension benefits reduced to $90 monthly and paid to single veterans with no dependents, or surviving spouses of veterans with no dependents, who are certified Medicaid eligibles in Medicaid facilities. The $90 payment is considered Aid and Attendance for eligibility purposes, and the full $90 is allowed as a personal needs allowance in facility cases. Individuals receiving VA compensation are not subject to the $90 reduction and they will not be given a $90 Personal Needs Allowance (PNA). 9. VA reimbursements for continuing medical expenses (CME) resulting in an increased monthly pension or for unusual medical expenses (UME) resulting in lump sum payments. These payments are not income in the initial eligibility determination and individuals are not required to apply these payments toward the vendor payment. 10. Any payments, including gifts and inheritances, made to an applicant/recipient due to the death of another person may be excluded from unearned income to the extent that the payments are spent on the deceased person’s last illness and burial. If an applicant/ recipient is unable to make payment of last expenses in the month that the funds are received, the funds will notbe considered a countable resource until after one calendar month following the month of receipt (e.g., Funds received on July 15th may be excluded during July and August. If not spent, the funds will be a countable resource