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UPDATED: NOVEMBER 2007 150

INCOME UNEARNED

IN-KIND INCOME

Description: In-kind income is received in goods or services rather than in cash. It can either be earned or unearned.

Policy: The value of goods and services is considered in determining eligibility for Medicaid only when they are provided by a legally responsible relative living outside the household or in return for services rendered.

NOTE: Clothing received by an SSI-related A/R from a legally responsible relative is not countable as in-kind income. If the clothing is received from an employer instead of cash, the value of the clothing is counted as in-kind earned income.

When persons other than legally responsible relatives provide goods or services to the A/R and the A/R has not provided any services in return for these goods or services, the in-kind income is not considered in determining eligibility for Medicaid.

References: SSL Sect.

366.2

Dept. Reg.

352.17 360-4.3 (e)

ADMs

84 ADM-21

GIS

05 MA/029

Interpretation: To evaluate if in-kind income is countable, local districts determine the relationship of the A/R to the person providing the goods or services and whether or not the A/R performs any services to earn the in-kind income.

In-kind income might include free lodging, meals, groceries or farm produce. In-kind income may be received by itself or together with income in cash as in the case of certain employed persons (e.g., dishwasher who receives wages and meals in compensation for his/her services).

The value of in-kind income is based upon the fair market value of the goods or maintenance received by the A/R. The fair market value is the dollar amount that an individual would receive if the goods or maintenance were sold on the open market in the A/R's local area.

(MRG)