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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |34 Effective Month: July 2025 Deducting Allowable Expenses Use the following criteria when deducting expenses essential to obtaining the unearned income: • Expenses are deducted from the first and any subsequent amount(s) of related income until the expense is completely offset. • Excludable expenses can be offset against the income when it is actually or constructively received. • Allow any verified expenses which were paid by the recipient prior to the receipt of the income (e.g., a partial payment to an attorney made from an individual’s savings account) as long as they are essential to obtaining the income. • Proof of having incurred the expense (bills, canceled checks, money orders, etc.) is required. If an expense has been incurred, but not paid, assume the individual will pay the expense. The remainder is unearned income subject to the general rules pertaining to income and income exclusions. 200A.06.04 OVERPAYMENT RECOVERY Unearned income includes that part of a benefit that has been withheld to recover a previous overpayment. However, the amount withheld to reduce a prior overpayment is not included as income if double counting would result. Double counting (counting the unearned income twice) would result if: • The individual received both SSI and the other benefit (or deemed income using the other benefit) at the time the overpayment of the other benefit occurred; and • The overpaid amount was included in figuring the SSI payment (and resulting Medicaid eligibility) at the time. This policy applies to the following types of benefits: • Annuities and pensions • Retirement or disability benefits (including veteran’s pensions and compensation) • Workers’ Compensation • Social Security benefits • Railroad Retirement benefits • Unemployment benefits • Black Lung benefits