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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL

INCOME TYPE DESCRIPTION

E-3004 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual

16 Nov 01 MTL 05/16 AWARDS

1. Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

4. Taxable An award is usually something received as the result of a decision by a court, board of arbitration, or the like.

Subtract essential expenses incurred in obtaining the payment, such as legal and medical expenses. Deduct from the first and any subsequent amounts of related income until all expenses have been eliminated. Deduct even those verified expenses which the recipient has previously paid, as long as the expenses are essential. If an expense has been incurred but not paid, assume the individual will pay the expense unless you have reason to question the situation.

Verification: (not all inclusive)

-Copy of bills or receipts BANK ACCOUNTS Checking, Savings, Time Certificates, Money Markets Certificates of Deposit (CD)

1. Earned/Unearned

2. Counted/excluded in Financial or Patient Liability-Varies by income type

3. Taxable

Refer to Individual Development Account (IDA) section for consideration of funds deposited and interest earned on funds in an IDA savings account.

Money deposited to a bank account is considered income in the month it is deposited. (Then considered a resource beginning with the month following the month it is deposited.)

Exception: In determining patient liability for spousal impoverishment cases only, income the payor designates as the client’s is budgeted. Income of the other joint holder(s) (i.e., the spouse or anyone else) deposited into the account is not considered the client’s income.

A. Sole Ownership

The client is designated as owner of the account, ALL the deposits are the client’s income.

Deposits made for another individual for the intent purpose of disbursing those funds on behalf of the individual are not considered income.

The client must provide proof deposits are made and used on behalf of another individual.