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payments without regard to hospital confinement.

f) Long term care insurance policies may be paid directly to the individual or to the nursing facility.

1) If payments are made directly to the individual, consider them countable unearned income.

2) If paid directly to the nursing facility, consider them a third party resource.

8. 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.

a) However, a third party vendor payment is a means by which an individual may receive unearned in-kind income if food or shelter is received.

9. 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

10. Return of Erroneous Payments. A payment is not income when the individual is aware the 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.

a) When the return is timely, accept the client’s statement the money was returned and do not count it as income.

b) However, if there is a delay in return of the erroneous payment beyond the month following the month of receipt, verify return of the full payment and document the reason for the delay and any other relevant facts.

11. Weatherization Assistance. This type of assistance (insulation, storm doors, windows, etc.) is not income.

12. Receipt of Certain Non-Cash Items. The value of any noncash items (other than an item of food or shelter) is not income if the item would become a partially or totally excluded nonliquid resource if retained into the month after the month of receipt.

a) Such non-income items may include, but are not limited to, specially equipped vehicles, automobiles, household goods, and property essential to self-support.

b) Consider these non-income items solely under resource rules.

13. Wage-Related Payments. The following payments by an employer are not income unless