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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL
INCOME TYPE DESCRIPTION
E-30024 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual
17 Jul 01 MTL 04/17 LOANS
1. Unearned
2. Excluded in Financial
3. Excluded in Patient Liability
4. Non-Taxable Money a person borrows or money received as repayment of the principal of a loan is not counted.
If a loan is NOT bona fide (not legally valid and made in good faith), the proceeds are counted in the month received. Interest received is also counted the month received.
Verification: (not all inclusive)
- Client’s statement is acceptable - Form 2506 LONG TERM CARE INSURANCE
1. Unearned
2. Counted in Financial
(conditional)
3. Counted in Patient Liability
(conditional)
4. Taxable (Conditional) Long Term Care policies that pay directly to the facility should be considered a third party payment and not counted in financial eligibility or patient liability.
Long Term Care policies that pay directly to the recipient without restriction on use of funds are counted as income in financial eligibility and patient liability.
Long Term Care policies that pay directly to the recipient for reimbursement of care already paid for are considered third party payments and not counted in financial eligibility. These payments are counted in patient liability.
MAGI: Long Term Care payments received by individuals are excluded from MAGI budgeting only if the premiums for the insurance were paid for with after-tax dollars. If the insurance premiums are paid with pre-tax dollars or the insurance is provided by the employer, any payments received from this insurance becomes countable on MAGI.
Verification: (not all inclusive)
- Insurance policy - Form 2015 from insurance company - Written statement from insurance company