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Title 8: Medicaid Page 42 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Types of Non-MAGI-Related Income Revised April 11, 2025 Retroactive SSI Payments Retroactive SSI Payments (Cont.) When a lump sum of retroactive SSI benefits is received on an ongoing Medicaid case, see Lump-Sum Income for treatment of income and see 8-D, Retroactive SSI and Social Security Lump-Sum Payments, for treatment as a resource. Sheltered Workshop Earnings 20 CFR 416.1110 Count the income a handicapped person earns at a sheltered workshop as earned income. Sick Pay 20 CFR 416.1110 Sick pay is payment made to an employee by an employer or third party for sickness or accident disability. (Payments to an employee under a workers’ compensation law are not sick pay.)

Verify the period of time that sick pay has been paid.

Count sick pay as earned income in the first six months of receipt unless the employer considers the income as unearned income. Contact the employer to determine how to consider sick pay. After six months, count sick pay as unearned income. Social Security Payments Count the gross amount of Social Security as unearned income. If the person is paying for Medicare Part B, the gross amount of the Social Security payment has been adjusted to allow for an even dollar net amount.

For eligibility, count the gross amount of the Social Security that will be received when Medicare buy-in takes place. Round up to the next dollar amount only when buy-in would affect eligibility for a program.

For client participation, Medically Needy spenddown calculation, and MEPD premium calculations, count the gross amount of the Social Security as verified by the Social Security Administration. (Do not round.)