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Aged, Blind and Disabled Manual Policy Manual Number: 110.032 Section: Financial Eligibility Requirements Chapter: ABD In-Kind Support and Maintenance

January 5, 2026 Division of TennCare 3

and Mrs. Johnson’s pro rata share is $400 a month ($1400/7 = $200 x 2 = $400). The Johnsons pay their daughter $300 a month toward shelter expenses. Because the couple’s contribution is less than the couple’s pro rata share, they are receiving ISM. The actual value of the ISM that the couple receives is $100. Since the actual value is less than the PMV, the AV is used.

Example 2: Harriet lives alone rent-free in a house owned by her uncle, Stanley. The house would rent for $1200 a month if it was rented on the open market. The rent-free house is ISM. The actual value of the rent-free shelter that she receives is $1200 a month. Since the actual value is more than the PMV, the PMV is used.

4. Living Arrangement The living arrangement of an individual determines whether ISM is valued under the PMV or the VTR rule. The living arrangement of an individual is where the individual lives. It also includes the type of household the individual lives in and who pays for the individual’s food and shelter.

a. Living in the Household of Another An individual lives in another person’s household if:

i. The individual does not live in his own household; and ii. The person who supplies the individual’s food and shelter lives in the same household and is not the individual’s spouse, a minor child, or someone whose income may be deemed to him.

b. Living in Own Household An individual lives in her own household if:

i. She (or someone whose income may be deemed to her) has an ownership interest or a life estate interest in the home; ii. She (or someone whose income may be deemed to her) is liable to the landlord for payment of any part of the rental charges; iii. She lives in a noninstitutional care situation (e.g., foster or family care); iv. She pays at least a pro rata share of the household operating expenses; or v. She lives in a household in which all household members, including the individual, receive public-income maintenance payments. See public-income maintenance payments defined in the ABD Deeming of Income and Resources policy.

Note: An individual who lives in a household in which all members receive public-income maintenance payments does not receive ISM from other members inside the household.