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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |113 Effective Month: July 2025 Clothing Allowance A cash payment to purchase clothing is earned income. UNIFORMED SERVICES – PAY AND ALLOWANCES Special and Incentive Pay Special and incentive pay is compensation to specific groups of uniformed people for inconveniences or hazard or provides incentives for those with skills in high demand to join or remain in the service. Special pay includes enlistment and reenlistment bonuses, flight pay, sea pay and more than thirty additional types of pay. Special and incentive pay is earned income. Hostile Fire/Imminent Danger Pay Hostile fire pay and imminent danger pay (sometimes referred to as “combat pay”) are types of special pay to a service member who is subject to hostile fire or explosion of hostile mines or on duty in an area in which he/she is in imminent danger of being exposed to hostile fire or explosion of hostile mines and while on duty in that area, other service members in the same area are subject to, killed, injured or wounded by hostile fire, explosion of a hostile mine or any other hostile action. Hostile fire and imminent danger pay is excluded income. If retained, unspent funds are a resource the following month if not otherwise excluded. Advance Pay Advance pay is a cash loan to be repaid in cash installments, usually by payroll deduction, rather than by future work. Advance pay is not income. Additional Pay Additional pay is an extra increment in pay, other than an increase in basic pay. Other than the on-base housing or privatized military housing allowance and hostile fire/imminent danger pay, additional pay is charged as earned income if the income was received after August 31, 2008, and the deemor was not serving in a combat zone when the additional pay was received. if additional pay is not treated as earned income, it is in-kind support and maintenance.