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A. When the spouse of an applicant or recipient receives Income Based on Need (IBON), the source of the IBON may count a portion of the VA benefit as income to the spouse receiving the IBON. This amount counted by the IBON source will be deducted from the countable VA benefit verified by VA for Medicaid eligibility.

1. Example: An applicant receives a VA pension and his spouse receives SSI. SSI verifies $50 of the VA pension is the spouse’s income in the SSI computation; therefore, $50 is deducted from the client’s verified VA pension in determining countable income for Medicaid.

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

Rule 7.26: Determining the Amount of VA Payments.

A. The following must be considered in determining the amount of VA payments:

1. The type of VA payment being made and the policy in effect in the month of payment.

2. Overpayments recovered from VA benefits are included as income in determining eligibility and Medicaid Income.

3. In cases where VA “suspends” VA Improved Pension benefits for failure to verify medical expenses, the benefit in effect prior to the suspension date continues to count as income because the recipient remains entitled to the VA benefit.

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

Rule 7.27: Unemployment Insurance Benefits.

A. This type of income is defined as follows:

1. Unemployment insurance benefits, also known as unemployment compensation, means payments received under a state or federal unemployment law and additional amounts paid by unions or employers as unemployment benefits.

B. This type of income is treated as follows:

1. Unemployment compensation is unearned income.

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

Rule 7.28: Workers’ Compensation Payments.

A. This type of income is defined as follows: