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MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL MEDICAL

INCOME TYPE DESCRIPTION

E-30042 Division of Welfare and Supportive Services TYPES OF EARNED AND UNEARNED INCOME Medical Assistance Manual

14 Mar 01 MTL 14/01 VACATION PAY

1. Earned

2. Counted in Financial

3. Counted in Patient Liability

4. Taxable Income from employer for vacation time off.

Verification: (not all inclusive)

- Copy of check - Statement from employer, Form 2074 VENDOR PAYMENTS

1. Unearned

2. Excluded in Financial

3. Excluded in Patient Liability

4. Non-Taxable Payments made to business/organization on behalf of the client.

Verification: (not all inclusive)

- Statement from person making payment VETERAN’S BENEFITS

1. Unearned

Veteran’s benefits include the following types: (Benefit increases usually occur effective December, reflected on January checks.)

a. Counted in Financial & Patient Liability

b. Non-Taxable

VA Compensation for Service Connected Disability, DIC or VA Survivor benefits

a. Exclude UME first then count in Financial & Patient Liability

b. Taxable-excluding UME allowance

VA Pension – Pension to wartime veterans, a non- service-connected disability benefit, or a benefit to survivors of wartime veterans. Evaluate for UME using Form 2039 and the VA award letter which indicates medical expenses were used to determine benefit amounts.

a. Exclude in Financial & Patient Liability

b. Non-Taxable

Aid and Attendance or Housebound benefits are paid to certain veterans and/or widows(ers) of veterans when these persons are unable to fully care for themselves physically. The $90 reduced pension is considered Aid and Attendance benefits.

A reimbursement of Unusual Medical Expenses (UME) is paid to veterans and/or widow(ers) of veterans when they show their medical expenses exceeded 5% of the maximum annual VA payment rate. This payment could be made as a lump sum payment or be prorated over the next year and be a part of the regular monthly VA check.