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d) The Disaster Relief Act of 1974;

e) General Assistance programs of the Bureau of Indian Affairs;

f) State or local government assistance programs based on need; and

g) VA benefits based on need.

2. In the deeming computation, the PIM payment and any income counted in determining the PIM payment are excluded when received by an ineligible spouse or parent.

a) Assume all of the income of the person who received the PIM payment was used (counted or excluded) in determining the payment.

b) There is no deeming allocation given for ineligible spouses, parents or children who receive PIM payments.

c) Resources continue to be deemed (or combined) from the spouse or parent receiving Income Based on Need.

d) If the spouse or parent who receives the PIM payments wishes to apply for Medicaid, the PIM payment is counted according to the income rules regarding the specific payment.

e) As a result of these exclusions from the deeming process, there may be situations advantageous to a couple if the potentially eligible spouse who has non-deemable income does not file.

1) Example: One spouse has a VA pension of $500. The pension (and any income used to determine the pension payment) is not deemable. The other applicant spouse has no income and would be treated as an individual with zero income. If the spouse who has the pension also files, the $500 would result in a dollar for dollar reduction in the couple FBR or FPL since income based on need is considered income to an eligible individual.

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

Rule 10.4: In-Kind Income.

A. In-kind income is defined as follows:

1. In-kind income is any income other than cash income.

a) To meet the definition of income, the in-kind item received by the individual must be: