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Medical Services Policy Manual, Section H

H 400 Post Eligibility

Steps for determining the amount of income to be applied to the cost of care are shown below: 1. Total Earned and Unearned Income Total all income of the recipient by type and amount with the following exceptions: • For State Human Development Centers and Arkansas Health Center residents, interest income is not counted in the monthly budget. • VA Aid and Attendance payments and VA CME/UME will not be counted as income. • Mandatory deductions and work-related expenses will be deducted from gross earnings. • Court-ordered child support and court-ordered spousal support will be deducted from earned or unearned income. • An additional amount of up to the current SSI/SPA will be deducted from the earnings of residents in ten-bed Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/IID) and State Human Development Centers. Refer to MS H-430. • LTC insurance payments, whether paid to the facility or directly to the recipient, are not considered in the eligibility process but are counted toward cost of care. 2. Income Trust Fees (if applicable) Deduct the applicable income trust fees. Refer to MS H-111 #3. • The monthly service charge for maintaining the trust bank account and • Commercially reasonable administrative fees charged by the commercial institution serving as trustee 3. Personal Needs Allowance Deduct the personal needs allowance (PNA). • Subtract a forty-dollar ($40) PNA for most facility residents. NOTE: Facility residents whose only income is SSI will be allowed to keep thirty dollars ($30) as their PNA. The PNAof an SSI recipient who also hasother income is forty dollars ($40). Refer to MS H-420. • Single veterans and spouses of veterans with no dependents whose VA pensions have been reduced to ninety dollars ($90) will be given the full ninety dollars ($90) as a personal needs allowance. An additional forty dollars ($40) will not be given. A ninety-dollar ($90) PNA will not be given to any individual whose VA pension has not been reduced to ninety dollars ($90) by the Veterans Administration (VA). If VA later reduces the pension to ninety dollars ($90), an income adjustment will be made. Individuals should contact the Veterans Administration if they believe they are entitled to a ninety-dollar ($90) reduced pension.