Page 18

Chapter: 1800 Income Program: MSSI, SFP 14 1840.0119.02 Medicare Part B Premiums (MSSI, SFP) Premium payments for supplementary medical insurance under Title XVIII (Medicare) are not included as income when the payment is made by a third party insurer. 1840.0119.03 Representative Payee Income (MSSI, SFP) When an individual acts as a legal representative (for example, representative payee, agent, guardian, conservator) to receive and spend money on behalf of another, the money received is not available income to the individual acting as legal representative. However, if the legal representative receives a fee, commission or contribution, that amount must be considered as unearned income. The representative payee's income received from the individual's funds must be verified. 1840.0119.04 OSS and HCDA Subsidies (MSSI, SFP) Optional State Supplementation (OSS) and Home Care for the Disabled Adult (HCDA) Program payments made to help cover the expenses of the individual that are recognized in the DCF subsidy payment are considered income based on need.

These payments are not to be considered as income to the individual receiving services or to the individual providing services when determining his eligibility for Medicaid or State Funded Programs. 1840.0123 Verification of Income (MSSI, SFP) Income must be verified and documented by the source.

A verbal statement from a suitable source as to the amount of income, amount and types of any deductions, frequency of receipt, and date of anticipated increases can be accepted when documentation is not available. Examination of a check or bank deposit is not sufficient for verification, because these do not necessarily include deductions.

For SSI recipients, SDX serves as acceptable verification of both Title II and SSI benefit amounts. Verification for the SSI recipient must still be obtained. Any loss or reduction of income must be properly verified or documented and an adequate explanation concerning the loss or reduction recorded. 1840.0200 EARNED INCOME (MSSI, SFP) Earned income includes all gross (before taxes or other deductions) wages and salaries from performance of work (including wages deferred that are beyond the individual's control). Wages are included as income at the time they are received rather than when earned.

Wages are considered earned income even when withheld at the request of the employee or provided as an income advance on income expected to be earned at a future date. Advances are different from loans since they are paid in exchange for anticipated services or labor.

An individual is considered employed when engaged in a business, occupation or service for cash paid by another person, group of persons or company. Wages or paid salaries received after employment has ended are considered earned income). Examples include severance pay and payment for accrued vacation time.

Employer-provided sick pay is earned income as long as the individual plans to return to work after recovering and is still considered an employee. Sick pay is a continuation of salary with normal payroll deductions and is not to be confused with benefits, such as Workers' Compensation, that are considered unearned rather than earned income.