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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |18 Effective Month: July 2025 from which the tax was withheld or paid was received in a period prior to the Medicaid application. NOTE: The American Taxpayer Relief Act of 2012 excludes from income all federal tax refunds and advanced tax credits received on or after January 1, 2010. A federal refundable tax credit reduces the federal tax liability of certain taxpayers. It can result in a payment to the taxpayer, either as an advance from an employer or as a refund from the IRS. All federal tax refunds and advanced tax credits received after 01/01/2010 also qualify for a 12-month resource exclusion. 200A.03.06 CREDIT LIFE OR CREDIT DISABILITY INSURANCE PAYMENTS Credit life and credit disability insurance are issued to or on behalf of borrowers to cover payments on loan, mortgages, etc., in the event of the borrower’s death or disability. Both types of insurance may be administered under group or individual policies. The insurance payments are made directly to loan or mortgage companies, and are not available to the individual, either directly or by sale or conversion, for purposes of meeting his basic needs. These payments made on behalf of an individual under credit life or credit disability policies are not income. 200A.03.07 OTHER INSURANCE PAYMENTS Each insurance policy must be examined to determine the type of benefit it provides and the purposes for which is can be used. Cash payments should be treated as follows: • Cash payments from any insurance policy made directly to the provider are not income since the beneficiary does not receive the payment. Any amounts paid to a facility for purposes other than medical care may be considered income if the facility actually pays the amount to the individual. • Cash payments from any insurance policy which are restricted for purchase or reimbursement of medical services covered under the policy are a third-party resource, not income.