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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 451 Assets Disregarded as Income

September 1st.) Any interest accruing to the unspent funds is countable unearned income in the month accrued. 11. Section 4735 of the Balanced Budget Act of 1997 (Public Law 105-33) states that payments made from any fund established as a result of a class settlement in the case of Susan Walker vs. Bayer Corporation are not considered income in determining Medicaid eligibility. This case involved hemophiliacs who contracted the HIV virus from contaminated blood products. Also, payments made pursuant to a release of all claims in a case that is entered into in lieu of the Walker vs. Bayer class settlement and that is signed by all affected parties on or before the later of December 31, 1997, or 270 days after the date on which the release is first sent to the persons to whom the payment is to be made are not income in determining Medicaid eligibility.  NOTE: Any interest earned by these funds is countable unearned income in the month in which it is added to the account. 12. Federal tax refunds and advance payments