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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |112 Effective Month: July 2025 Do not deduct expenses of obtaining income from royalties/honoraria that are earned income. Such expenses are deductible from royalties/honoraria that are unearned income. 200A.09.11 UNIFORMED SERVICES – PAY AND ALLOWANCES Military personnel rarely apply for Medicaid; however, spouses and children may apply, and the military pay, and allowances would be subject to deeming. Compensation to members of the Uniformed Services takes several forms, chiefly: • Basic or Base Pay • Special and Incentive Pay • Cash Allowances Effective September 1, 2008, the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act) changed how certain cash payments to members of the Uniformed Services are treated. Cash payments, other than for on-base or privatized military housing and hostile fire/imminent danger pay, paid for service as a member of the uniformed service are treated as earned income. A service member’s Leave and Earnings Statement (LES) will identify the type of cash payment and the amount for each. Basic Allowance for Housing (BAH) Service members and their families living in on-base housing or privatized military housing may receive a BAH payment or the military may direct a BAH to a housing contractor by way of payroll deduction or allotment. In each case, the BAH is not cash income. However, if service members and their families who live in private housing receive a BAH payment, it is earned income. Basic Allowance for Subsistence (BAS) A BAS payment for food is earned income. If a deduction is made from the BAS to pay for meals eaten on base (e.g., a meal card), the gross amount of BAS is still earned income.