Page 99

MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |99 Effective Month: July 2025 UNEARNED INCOME EXCLUSION Unspent victims’ compensation assistance payments are excluded from resources for 9 months following the month or receipt. Interest earned on unspent victims' compensation payments is not excluded from income or resources. 200A.09 SOURCES AND TREATMENT OF EARNED INCOME The following sections list different sources of earned income and how they are treated in the eligibility process. 200A.09.01 SICK PAY Sick pay is a payment made to or on behalf of an employee by an employer or a private third party (such as a union or insurance company) for sickness or accident disability. Sick pay is either wages or unearned income. NOTE: Payments under a Workers’ Compensation law are neither wages nor sick pay. Annual and sick leave payments are considered a continuation of salary. Treatment - The following chart shows how to treat sick pay: When sick pay is received Attributable to the Employee’s Own Contribution? Type of Income Within 6 months after stopping work No Wages Yes Unearned More than 6 months after stopping work NA Unearned When sick pay is alleged within 6 full calendar months after stopping work, it must be determined whether or not the employee contributed by payroll deduction toward a sick pay plan. Any portion of sick pay received by an employee within 6 full calendar months after stopping work, which according to the employer, is attributable to the employee’s own contribution is not wages, but rather is treated as unearned income.