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Families and Children Manual Section: Financial Eligibility Policy Manual Number: 010.045 Chapter: Medically Needy Countable and Excluded Income

November 01, 2021 Division of TennCare 1

MEDICALLY NEEDY COUNTABLE AND EXCLUDED INCOME

Legal Authority: 26 USC 6409; 45 CFR 233.20; State Plan, Supplement 8A to Attachment 2.6-A; Tenn. Comp. R. & Regs. 1200-13-20

The Medically Needy TennCare Medicaid categories are the only TennCare categories that continue to use the AFDC financial methodology. Additional descriptions about specific income types may be found in the MAGI and ABD income chapters, but the Medically Needy treatment of income types may differ in these policies and income treatment should be guided by this document.

Countable Earned Income

Income Type Treatment Bonus Count in the month received. A bonus is a one-time payment that an individual receives in addition to her normal wages or salary. Commission Count in the month received. Commission is income received by an individual for services performed. Commission income is often paid based on a percentage of a sale or a fixed amount per sale. Contractual Income paid to an individual based on a contractual agreement. To calculate contractual income, average the full amount of income paid over the number of months covered by the contract. Differential Count payment made to an individual by an employer for a period during which he is performing service in the uniformed services while on active duty for a period of more than 30 days. Farming/Fishing

Earned income when individual materially participates in the production of income. Count in the month received. Farming or fishing income may be considered self-employment income, but should only be counted once.

1. Farming Income

Farming income is income received when an individual is in the business of farming if she cultivates, operates or manages a farm for profit, either as owner or tenant. A farm can include livestock, dairy, poultry, fish or fruit. It can also include plantations, ranches, ranges and orchards.

2. Fishing Income

Fishing income includes amounts an individual receives from catching, taking, harvesting, cultivating or farming fish, shellfish, crustaceans, sponges, seaweeds or other aquatic