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8. Home maintenance allowance (only when institutionalized individual is not married). INCURRED MEDICAL EXPENSES: Some of the institutionalized individual’s medical expenses can be deducted from their income when determining their cost of care liability. Medical expenses incurred during an asset transfer penalty month are not allowed. Life insurance premiums are not medical expenses and are not deductible. Incurred medical expense deductions are limited to: 1. Medical expenses incurred in the three months immediately preceding the institutional care Medicaid application or coverage request; or 2. Current payments on expenses incurred more than three months prior to application/coverage request. 3. Incurred medical expenses must also meet ALL of the following to be allowed: a. Unpaid at time of institutional Medicaid application/coverage request; AND b. Medical services, supplies or equipment recognized and regulated by State law; AND c. Not payable by a third party; AND d. Not previously used to meet/reduce a spend down or offset the client’s cost of care liability in a previous month. Allowable medical expenses must be reported and verified within the application/request processing period, or within three months of coverage request date, whichever is later. See CMA 702-1 Medical Expense Option for more information. 1. Health insurance premiums (including Medicare); 2. Medical expenses incurred while institutionalized that are: a. prescribed by a physician; b. not Medicaid-covered services; c. not payable by a third party; and d. subject to the limitations outlined in CMA 702-1 Medical Expense Option Items included in the Medicaid payment to a nursing facility as part of Medicaid- covered services cannot be separately billed to the nursing home resident and cannot be deducted if the family purchases them elsewhere and brings them to the facility. These include, but are not limited to eye drops, wipes, procedure gloves, etc. Medicaid-covered services received from a non-participating provider are not allowable. Providers have up to a year to enroll in Medicaid and bill for the services. Medical expenses incurred after application must be reported timely (within 10 days of knowledge).