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5. Effective September 8, 2006, if an individual begins receiving a recurring payment (like a Social Security check) in the third month of a quarter, the payment does not meet the definition of infrequent because it will be received in the following month, even though the following month is in another quarter. The same would be true if the recurring payment ended in the first month of a quarter, but had been received in the prior month in another quarter.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 4.4: Plan for Achieving Self-Support (PASS) Exclusion.

A. The Social Security Act permits the exclusion of income and resources of a person who is blind or disabled if the person needs such income to fulfill a Plan for Achieving Self-Support under an approved plan.

1. This exclusion applies to a blind or disabled individual under age 65, or age 65 or older if the individual was receiving SSI, disability or blind payments, for the month before he became age 65.

B. The income of a blind or disabled recipient, whether earned or unearned, may be excluded under an approved PASS when the income is set aside for a planned expenditure determined necessary to achieve the individual’s occupational objective.

1. To be eligible for this income exclusion for Medicaid, the individual plan must be submitted to state office for approval. The plan submitted must:

a) Include the objective and time period for achieving it;

b) Include the amount of money involved; and

c) Be currently in use by the individual.

C. With the implementation of the Working Disabled Program with higher income and resource limits, PASS income and resource exclusions are rare.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Part 104 Chapter 5: Earned Income Exclusions

Rule 5.1: Applying the Exclusions.

A. While the source and amount of all earned income must be determined, not all earned income counts when determining Medicaid eligibility.

1. First, any earned income excluded by federal law must be disregarded.

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Official source

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Rule 4.4: Plan for Achieving Self-Support (PASS) Exclusion.

1. This exclusion applies to a blind or disabled individual under age 65, or age 65 or older if the individual was receiving SSI, disability or blind payments, for the month before he became age 65.

1. To be eligible for this income exclusion for Medicaid, the individual plan must be submitted to state office for approval. The plan submitted must:

a) Include the objective and time period for achieving it;

b) Include the amount of money involved; and

c) Be currently in use by the individual.

C. With the implementation of the Working Disabled Program with higher income and resource limits, PASS income and resource exclusions are rare.

Source: Social Security Act §1902 (r)(2); 42 CFR § 435.601(b) (Rev 1994).

Part 104 Chapter 5: Earned Income Exclusions

Rule 5.1: Applying the Exclusions.

A. While the source and amount of all earned income must be determined, not all earned income counts when determining Medicaid eligibility.

1. First, any earned income excluded by federal law must be disregarded.