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TITLE 16 HEALTH AND SAFETY DELAWARE ADMINISTRATIVE CODE 9 A prize is generally something won in a contest, lottery or game of chance. A prize is unearned income. Do not subtract gambling losses from gambling winnings in determining countable income. 20210.11 Workers' Compensation The workers' compensation payment less any expenses incurred in getting the payment is unearned income. Any portion of an award or payment that the authorizing or paying agency designates for medical expenses or legal or other expenses attributable to obtaining the award is not income. The expenses may be past, current, or future. The payments designated for such expenses may be received in a lump sum or as a continuing payment. 20210.12 Vacation Pay Vacation pay is considered earned income even if donated to the individual by co-workers. 20210.13 Sick Pay Sick pay is either wages or unearned income. Sick pay is earned income if received within 6 months after stopping work. To determine the 6-month period after stopping work: begin with the first day of nonwork, include the remainder of the calendar month in which work stops, and include the next 6 full calendar months. For example, if an individual stops work on May 5, the 6-month period begins on May 6 and runs through November 30. Any sick payments made more than 6 months after work stops are unearned income. 20210.14 Inheritances An inheritance is cash, a right or a noncash item received as the result of someone's death. An item is not income until it has a value that can be used for food, clothing, or shelter. An inheritance is unearned income in the first month it has value and can be used. 20210.15 Indemnity Benefit Payments Indemnity Benefit Payments are a fixed amount of money payable to the insured individual when he or she becomes an inpatient of a hospital or a nursing facility. If the benefit payments are made directly to a facility, they are not income since they are not received by the individual. Amounts paid to a facility for purposes other than medical care are considered income if the money is available to the individual to use for food, clothing or shelter. An insurance payment made directly to an individual is considered income unless it is restricted to the purchase or reimbursement of medical services. Indemnity plans which are restricted to the purchase or reimbursement of medical services are a potential third party liability resource. Insurance payments which are countable income must be included in the posteligibility patient pay calculation. If the policy limits the benefits to medical care, the premium for the indemnity insurance plan may be deducted or "protected" from income in the patient pay calculation. 20210.16 Self Employment Repealed 07/01/06) 9 DE Reg. 564 (10/01/05) 10 DE Reg. 143 (07/01/06) 20240 Budgeting Income for Eligibility 20240.1 Gross Income Gross income is counted in the month it is actually received. Each applicant will have $20.00 of his available income disregarded in order to determine his/her eligibility. There is only one $20.00 disregard from total combined income for a couple. An exception is that "need" based payments (such as veteran's pensions) does not get a $20.00 disregard. 20240.2 Needs or Non-Needs Based Income It is important to distinguish between "need" based and "non-need" based income. This becomes a consideration with applicants/recipients of Veterans benefits. Disability compensation is a non-need based benefit paid to veterans injured in the Service. VA pensions are generally need based. A veteran receives a need based pension on the basis of other income and/or disability. Need based benefits are not age related. They are strictly a means of bringing a veterans income up to the minimum level set by the Veterans Administration if the veteran has a financial and/or medical need. 20240.3 Earned Income For applicants who have earned income the following disregards apply to the monthly gross earned income: deduct $20.00 deduct $65.00 then 1/2 of remainder