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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL

INCOME TYPE DESCRIPTION

Division of Welfare and Supportive Services E-30025 Medical Assistance Manual TYPES OF EARNED AND UNEARNED INCOME 14 Mar 01 MTL 14/01 LUMP SUM PAYMENTS

1. Unearned

2. Counted in Financial

3. Counted in Patient Liability

(not to exceed actual cost of

care)

4. Taxable Lump sum payments are considered income in the month received. Exception: SSI lump sum payments.

For retroactive Social Security Disability benefits which must be paid in installments due to the Drug Alcohol Addiction (DA&A) law, count the entire lump sum entitlement (sum of all installment payments) amount in the first month an installment payment is made.

Verification: (not all inclusive)

- Copy of check or money order - Legal documentation - Client’s sworn and dated statement - Documents from public agencies (SSA, SIIS, VA, etc.)

MEDICAL INSURANCE CASH PAYMENTS

1. Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

4. Non-Taxable REIMBURSEMENT for medical costs paid by the client and medical insurance cash payments the client proves were applied toward medical bills.

Verification: (not all inclusive)

- Explanation of Benefits (EOB) from the insurance company - Receipts for medical payments

MEDICARE PREMIUM REIMBURSEMENTS

1. Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

4. Non-Taxable Medicare reimbursements are exempt ONLY if the client paid the premium.

Verification: (not all inclusive)

- Copy of the check or award letter