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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 11

Income Not Pursued Excluded. Income not pursued includes payments for which an individual could apply on an ongoing or one-time basis and may include annuities, pensions, retirement benefits or disability benefits.

Note: This may decrease household size for other individuals in the household and the applicant may be found not eligible due to failure to apply for other benefits. Infrequent or Irregular Income Exclude up to $30 per calendar quarter of unearned income that is received either irregularly or infrequently. In order to be excluded, the income need only be irregular or infrequent.

Income is considered to be received irregularly if an individual cannot reasonably expect to receive it. Income is received infrequently if an individual receives it only once during a calendar quarter from a single source and the individual did not receive that type of income in the previous month or in the month following the month in which the money was received. Long Term Care (LTC) Insurance Payout Exclude payments from long term care insurance used for medical care. Lump Sum Lump Sum payments are excluded as income in the month of receipt if they are retained by the individual. Protective Payee Funds received by a protective payee (conservator, authorized representative or representative payee) and used for the care and maintenance of a third party beneficiary (adult or child) who may or may not be a member of the protective payee’s household are excluded as income to the protective payee. Any part of the payment that is retained by the protective payee for his own use is countable income to the protective payee. Even if the protective payee retains a fee for their services, the entire payment issued to the beneficiary is countable income to the beneficiary. Reimbursements Excluded. Applies only to expenses an employee incurs in the performance of his or her duties for items other than normal living expenses. Settlements and Restitutions The following settlements and restitution payments are excluded as unearned income:

• Agent Orange Settlement Payments (payments and interest are excluded); • Disaster Relief Assistance received under the Disaster Relief Act of 1974; • Distribution of perpetual judgment funds to Indian tribes under the following: