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which does not fall under one of the above provisions is unearned income to the member even if turned over to the order.

d) Any income or resources turned over by the member to the order are considered to be in fulfillment of the vow of poverty and are not considered contributions for food, clothing, or shelter received from the order.

e) Unearned income received by a member from any source other than the order (such as a Title II or VA benefits) is income to the member even if the member turns it over to the order.

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

Part 104 Chapter 10: Income Computations and Deeming

Rule 10.1: Income Computations.

A. Countable income is defined as follows:

1. Countable income is what remains after:

a) Eliminating all amounts that are not income; and

2. Applying all appropriate exclusions.

B. Countable income is the sum of a month’s countable earned and unearned income, which is subtracted from the appropriate need standard to determine if an individual or couple is eligible for Medicaid.

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

Rule 10.2: Need Standards.

A. The appropriate need standard used to test income depends on the coverage group for which the client is applying.

B. Medicaid need standards are based on the following:

1. SSI Federal Benefit Rates (FBR) set by SSI policy and subject to increase in January of each year. SSI FBRs are used for SSI-related cases.

a) Countable income cannot equal or exceed the appropriate FBR for Medicaid eligibility.

2. Federal Poverty Levels (FPL) set by the federal government and subject to change each year, usually in February or March. FPLs are used at varying rates (100%, 120%, 135%,