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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |19 Effective Month: July 2025 • Cash payments from policies that restrict payments to periods of hospital confinement are a third-party resource, not income. • Cash payments from specialized policies, such as cancer or dismemberment polices, are reimbursements not counted as income and not a third-party resource. • Cash payments from any insurance policy intended for income supplementation for lost income due to a disability are considered income. This includes weekly disability payments without regard to hospital confinement. • Long term care insurance policies may be paid directly to the individual or to the nursing facility. If payments are made directly to the individual, consider them countable unearned income. If paid directly to the nursing facility, consider them a third-party resource. 200A.03.08 BILLS PAID BY A THIRD PARTY When someone other than the eligible individual or couple makes a payment directly to a vendor, the payment is not income to the Medicaid recipient because the individual does not receive the payment itself. However, a third-party vendor payment is a means by which an individual may receive unearned in-kind income if shelter is received. 200A.03.09 REPLACEMENT OF INCOME ALREADY RECEIVED If an individual's income is lost, stolen or destroyed and the individual receives a replacement, the replacement is not income. This is because once a payment has been issued and treated as income in determining an individual's eligibility, the reissuance of that same payment is not counted as income 200A.03.10 RETURN OF ERRONEOUS PAYMENTS A payment is not income when the individual is aware that he is not due the money and returns the check uncashed or otherwise refunds all of the erroneously received money in the month of receipt or the following month. When the return is timely, accept the client’s statement the money was returned and do not count it as income.