Page 43

43

C. However, if an ineligible spouse or parent receives a VA payment that is solely attributed to UME or A & A, the receipt of such payment will result in deeming the remaining income of the ineligible to the eligible.

D. Example: If an ineligible spouse receives Social Security and VA that is attributed solely to UME, the ineligible’s Social Security would be deemable to the eligible. However, if the ineligible receives a VA needs-based pension or needs-based compensation payment in addition to payment for UME, all income of the ineligible, including the Social Security payment, is non-deemable to the eligible person.

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

Rule 7.21: Treatment of Institutional Cases involving UME or A & A.

A. If the institutional client (IS) with a community spouse (CS) receives non-countable income from UME or A&A, the CS will be allowed to receive the IS’ payment attributable to UME or A&A in addition to the CS allocation amount computed in the Medicaid Income computation.

1. If the CS is not entitled to Medicaid, the extra income will have no impact.

2. However, if the CS is Medicaid-eligible at home, the income that represents the UME (or A&A) payable to the IS is income to the CS.

a) UME (and A&A) is disregarded as income only to the one entitled to the payment.

b) When it becomes income available to the CS, it is income to the CS.

1) If the income is given to anyone else, the possibility of a transfer of resources exists.

B. If the CS does not receive the income attributed to UME (or A&A), the possibility of excess resources building up for the IS exists. In this case, resources must be monitored closely.

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

Rule 7.22: Treatment of VA Income in Income Trust Cases.

A. Only basic VA benefits (as verified by VA) are counted as an Income Trust client’s total income available to fund the Income Trust.

1. Any UME (or A&A), which is not counted as income, can be retained by the client and/or spouse, as discussed in the above rule.

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