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prior to the Medicaid application.

a) The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides that federal tax refunds received from January 1, 2010, through December 31, 2012, are not counted income or as a resource to the recipient or any person to whom the funds are given for a period of 12 months following receipt.

1) Through December 31, 2012, any of these funds which are transferred are not subject to penalty.

2) If placed in a trust, the funds are not subject to Medicaid trust provisions.

6. Credit Life and Credit Disability Insurance Payments. These payments 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.

a) Both types of insurance may be administered under group or individual policies.

b) 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.

c) These payments made on behalf of an individual under credit life or credit disability policies are not income.

7. 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:

a) 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.

b) 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.

c) Cash payments from policies that restrict payments to periods of hospital confinement are a third party resource, not income.

d) Cash payments from specialized policies, such as cancer or dismemberment polices, are reimbursements, not a third party resource.

e) Cash payments from any insurance policy intended for income supplementation for lost income due to a disability are considered income. This includes weekly disability