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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 4
Individuals who are homeless, transient (i.e., without a fixed place of residence) or living in an institution do not live in a household.
5. When ISM is Counted ISM counts as income in the month that the individual has use of the shelter item, except when the ISM is from a third-party vendor payment. When a shelter item is obtained through a vendor extending credit to an individual and a third party later makes a payment directly to the vendor for the item as a gift, the third-party vendor payment is income in the month the payment is made.
6. Exceptions to Charging ISM Shelter does not count as ISM if the shelter is not considered to be income or is excluded from income under federal statute. This includes shelter that:
a. Has no CMV; b. Is provided under the terms of a bona fide loan agreement; c. Can be excluded as infrequent or irregular income; d. Is provided by someone in the household whose income may be deemed to the individual; e. Is specifically excluded by Federal law; f. Is provided under a governmental medical or social service program; g. Is assistance based on need from a state or political subdivision; h. Is received during a temporary absence; i. Is received during medical confinement in an institution; j. Replaces lost, damaged or stolen resources; or k. Is received because of payments made under the terms of credit life or credit disability insurance.
7. ISM from an Employer Shelter provided by an employer to the following people, or under the following conditions, is considered ISM, including payments:
a. To certain agricultural employees; b. To domestic employees; c. For service not in the course of the employer’s trade or business; d. For service by certain home workers; e. For members of the Uniformed Services; and f. Provided on the employer’s business premises, for the employer’s convenience, and in the case of shelter received, its acceptance by the employee is a condition of employment.