(Revised 11/1/10 ML #3238)
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Income is the gain or benefit, earned or unearned, derived from labor, business, capital or property that is received or is available to the individual.
Earned income is defined as income earned through the receipt of wages, salaries, commissions, or profit from activities in which an individual is engaged through employment or self-employment. Earned income must entail personal involvement and effort on the part of the applicant or recipient. The household must verify all income.
Unearned income is income not gained by current labor, service, or skill. The types of unearned income include but are not limited to Social Security benefits (Social Security Income (SSI), Social Security Disability benefits, Social Security Survivors benefits), Veterans benefits, private pensions, Workman’s Compensation, rental income, and dividends and interest income except IIM interest income.
All income under the Basic Care Assistance program must be counted, including interest income from checking or savings accounts. Based on verification of interest income received at the time of application and redetermination from checking or savings account interest income may be annualized or averaged over a 12-month time period.
NOTE: This policy differs from Medicaid which states, “The following types of income must be disregarded in determining Medicaid eligibility: Interest or dividend income from liquid assets;” Refer to Medicaid policy – 510-05-85-30, Disregarded Income.
Deemed income actually received is considered countable unearned income.
Basic Care counts Individual Indian Monies (IIM) income the same as Medicaid and disregards.
When there is an SSA or SSI overpayment deducted from the SSI or SSA benefit, follow Medicaid policy Section 510-05-85-05 Income Considerations, “Income that is withheld because of garnishment or to pay a debt or other legal obligation is still considered available. Title II and SSI overpayments being deducted from Title II benefits are normally considered to be available because the applicant or recipient can pursue a waiver of the overpayment. Only if the waiver has been denied after a good faith effort, can the Title II or SSI overpayment deductions be considered unavailable. Occasionally other delinquent debts owed to the federal government may be collected from an individual’s Title II benefits. These other reductions of Title II benefits are NOT allowed to reduce the countable benefit amount. The award amount of the Title II benefit is counted as available.”
VA – Aid and Attendance payment follows Medicaid policy, Section Unearned Income 510-05-85-15, “Veteran's Administration aid and attendance, Veteran's Administration reimbursements for unusual medical expenses, and Veteran’s Administration homebound benefits intended for medical expenses, must be considered as income in the month received and assets thereafter.”
VA – Improved Pension, Medicaid allows the individual to keep $90. Basic Care Assistance, the Improved Pension is counted as income but the resident can only retain the maximum of $85 for personal needs per state law.
