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ABD: Earned vs. Unearned Vendor/In-Kind Income Earned: Vendor/In-kind benefits (food or shelter) provided to an employee who has the option of either receiving in-kind benefits or increased wages. Unearned: Vendor/In-kind benefits (food or shelter) provided to an employee on the employer’s premises as a condition of employment and/or for the employer’s convenience.

ABD Vendor/In-kind Benefit Value When vendor/in-kind benefits are received in the form of food and/or shelter, the value is determined as follows:

One-third value reduction provision (all food and shelter): Consider unearned vendor/in-kind income equal to 1/3 the individual or couple categorically needy income standard when an individual/couple receives all food and shelter from:

1. Other household members while living in another person’s household throughout a month; or 2. Others outside their household while living in their own home.

Presumed Maximum Value (PMV) rule (food or shelter): Vendor/in-kind benefits for food OR shelter are valued using the PMV rule. Apply the PMV rule to situations such as, but not limited to an individual/couple:

1. Lives rent-free in a residence separate from other households; 2. Receives food; 3. Receives any other food or shelter from a third party.

The PMV is the lesser of:

1. One-third the individual or couple (as appropriate) categorically needy income standard amount (see ABD 008 Table of Standards-Categorically Needy Income) plus $20, or 2. The actual value of the food or shelter contributed (if proof is provided).

ABD and Family Medically Needy: Vendor/in-kind income is not included in any deeming process. Example: Ken works at the Q&C ranch. He is required to live on the ranch property; the rental value is $350. Ken is applying for ABD Medicaid for his wife. The PMV or rent value is entered as Ken’s unearned income. If Ken has the option of living on the ranch or renting in town (at his employer’s expense), the rental value is countable earned income. Exclude unearned vendor payments for goods and services other than food and shelter when made with funds not owed to the household (e.g., grandmother buys clothes for her grandchildren).