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Aged, Blind and Disabled Manual Section: Financial Eligibility Requirements Policy Manual Number: 110.030 Chapter: ABD Unearned Income

March 18, 2019 Division of TennCare 9

received, if they are not from an excluded source.

Long Term Care (LTC) Insurance Payout Long-Term Care (LTC) insurance policies are treated as Third Party Liability. The LTC policy must be assigned to the nursing home, the HCBS provider, or the Managed Care Organization (MCO). If the LTC policy is not assignable, the individual must provide any payments received to the nursing home, the HCBS provider, or the MCO. Payments made to the nursing home, HCBS provider, or the MCO are not treated as income.

If an individual receives an LTC Insurance payout, and does not use the benefit to pay the nursing facility, the HCBS provider, or the MCO, the payout will be counted as unearned income in the month received.

Military Allowances Countable.

Military allowances are cash benefits that compensate the service member, at least in part, for the expenses of housing, food, clothing, and special situations during periods of active duty service.

Military allowances paid to service members and their families are generally counted as earned income. See the ABD Earned Income policy.

The basic allowance for housing (BAH) is a cash allowance that service members receive during periods of active duty military service to pay for housing.

The BAH is treated as earned income when the payment is made to military personnel living in private housing. The BAH counts as unearned income in the form of in-kind support and maintenance (ISM) subject to the Presumed Maximum Value (PMV) rule when paid to service members and their families living in on-base housing or privatized military housing.

See the In-Kind Support and Maintenance policy to determine the value of ISM.

Pension Countable.