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UPDATED: JULY 2008

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INCOME UNEARNED

LUMP SUM PAYMENTS

Interpretation: After allowable deductions, countable lump sum payments are considered income in the month received. The lump sum is combined with any other countable income. Allowable disregards are subtracted. The remaining income is compared to the appropriate income level. (See REFERENCE MEDICALLY NEEDY INCOME AND FEDERAL POVERTY LEVELS) Any excess income is considered available to meet the cost of medical care and services.

When to Verify: When the A/R indicates that s/he recently received a benefit award, bonus, year-end profit share, retroactive pay increase, or other lump sum.

When the A/R indicates that s/he is anticipating a lump sum payment.

When the record indicates that the A/R has applied for a benefit and may be eligible for a retroactive payment.

When the Resource File Integration (RFI) report indicates that the A/R has income.

Verification/ Documentation: Sufficient to establish an audit trail:

• Lump sum payments are verified. State computer matches are reviewed to determine the source of income.

• The amount, date and source of all lump sums are documented. The preferred forms of verification/documenta- tion are checks, check stubs, award letters, or other written statements from the payer of the lump sum.

(MRG)