In Step 1 for Medically Needy Only (MNO) individuals, the CAO will exclude the same types of income as for Nonmoney Payment (NMP) individuals plus the following types of income:
NOTE: The exclusions in this section do not apply in Step 2.
1. Property tax refunds and rent rebates
The CAO will not count property tax refunds, rent rebates, and inflation dividend payments received under the Senior Citizen Rebate and Assistance Act.
The CAO will not count money received from a public agency as a refund of taxes paid on property.
2. Support or maintenance assistance (SMA) benefits
The CAO will not count in-kind support or maintenance assistance benefits provided by private, nonprofit organizations. SMA benefits include Home Energy Assistance (HEA) payments and such things as food, clothing, temporary emergency shelter, furniture, and appliances.
The CAO will not count advance monthly EIC payments or year-end EIC refunds. The CAO will exclude a payment in the month it is received and the following month. If any money is left after that, the CAO will count it as a resource.
The CAO will not count interest income if (1) it is received only once in a calendar quarter and (2) the combined total of the interest plus any other infrequent or irregular unearned income is $20 or less for the month it was received.
NOTE: See Section 450.241 for additional information about the treatment of interest income.
5. Unearned income of $20 or less
The CAO will not count unearned income of $20 or less monthly unless it comes (1) on a regular basis or (2) more than once in a calendar quarter.
Example: Abby wins the following amounts in the lottery: $18.50 on February 10, $21 on March 15, and $19.30 on May 20. The CAO excludes the February winnings, because the payment was less than $20. The CAO counts the March winnings, because Abby received a payment more than once in a quarter. The CAO excludes the May winnings, because they were less than $20 and in a separate calendar quarter.
6. Earned income less than $10
The CAO will not count earned income of $10 or less monthly unless it comes (1) from more than one place, (2) more than once in a calendar quarter, and (3) on a regular basis.
Example: Brenda makes crafts during activities at the LTC facility. On November 20, Brenda sells an item for $6. On December 22, Brenda sells another item for $11. The CAO excludes the $6 received in November but counts the $11 received in December, because it was more than $10.
The CAO will not count, for 18 months, money received because of an event that was declared a major disaster by the President under the Disaster Relief Act of 1974 or another federal law. However, all of the following conditions must be met:
The individual was living in his or her own home at the time of the event but was forced to leave because of it.
The individual began to receive the money within 30 days after the last day of the event.
The individual received the money while living in any residential facility, including a private household maintained by another individual.
The income exclusion must begin on the date the money is received and end on the last day of the 18th full month after that.
The CAO will:
Verify the amount of the money and the date it was received.
Exclude any money received for 18 full calendar months after the month the first payment was received.
Create an alert for the 17th month to review the case.
If any money is left from the disaster relief in the 19th month, the CAO will count it as unearned income. If any money is left in the 20th month, the CAO will count it as a resource.
8. Interest on disaster relief assistance
The CAO will not count interest earned on disaster relief assistance from the date the money was received through the last day of the ninth full month after that.
If the individual does not repair or replace the damaged property within nine months, the CAO will extend the exclusion period for an additional nine months. The CAO will create an alert for the 17th month to review the case.
NOTE: To get an extension, the individual must show proof from at least two contractors that the individual made a reasonable effort to get the repair work done. The CAO must add the proof to the individual’s case record. The individual must also say that the individual still plans to make the repairs or replacement. If a lot of repair work is needed in the area, the CAO may contact area contractors to find out how long it will take to complete the work. The CAO must write down any spoken information and add it to the individual’s case record.
If the individual changes his or her mind about making the repairs or replacement during the extended period, the CAO will count any money left as income in the current month. If any money, including interest, is left after the 19th month, the CAO will count the cash as a resource.
9. Payments by a state based solely on residence
The CAO will not count periodic payments made by a state based solely on length of residence and being 65 or older under a program established before July 1, 1973.
10. Relocation assistance and real property acquisitions
The CAO will not count money received under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
11. Rehabilitation Act payments
The CAO will not count money received by an individual for wages, allowances, or reimbursement for transportation and attendant care costs under Title VI of the Rehabilitation Act, except on a case-by-case basis. The individual must be employed in a project under Title VI of the Rehabilitation Act of 1973.
12. Retroactive SSI and RSDI payments
The CAO will not count retroactive SSI or RSDI benefits for nine calendar months after the month in which they are received. 55 Pa. Code.
NOTE: After the nine-month exclusion period, the CAO will count any money left as a resource.
13. Interest on irrevocable burial reserves
The CAO will not count interest earned on an irrevocable burial reserve that has been excluded as a resource if the interest is kept in the reserve. See Chapter 440, Resources.
14. Unearned income reduced to pay back an overpayment
If unearned income is reduced to pay back an overpayment, the CAO will count the net income if the overpaid amount was counted in determining eligibility for cash or MA when the overpayment occurred.
The CAO will:
Verify the monthly amount of the overpayment and the date or dates it was paid.
Verify the amount being deducted as repayment.
Add up the overpayments.
Divide the total overpayment by the amount of the monthly reduction in benefits to find the number of months it can be excluded.
Create an alert to count the full benefit, including the reduction, when the overpayment is paid back.
15. Advance payments against expenses of obtaining income.
16. State and local relocation assistance
The CAO will not count money paid by a state or local government to help the person move. For nine months after that, the CAO must also exclude the money as a resource.
20 CFR 416.1124(c)(18)
17. Radiation Exposure Compensation Trust Fund (RECTF) payments
The CAO will not count a one-time lump sum payment made to a person who was exposed to doses of radiation during specific periods of time and under specific circumstances and who contracted certain diseases after the exposure.
The CAO will not count money paid by a public or private placement or child-care agency for providing foster care for a child through Title IV-E of the Social Security Act or Article VII of the Public Welfare Code.
19. Grants/loans to undergraduate students
See the Medical Assistance Eligibility Handbook, Chapter 314, Students.
20. Agent Orange settlement payments
The CAO will not count payments made from the Agent Orange Settlement Fund or any other fund that is used to settle Agent Orange Product Liability Litigation.
The CAO will not count tax exempt payments received under Section 21(A) of the Alaska Native Claims Settlement Act.
The CAO will not count money received under a program established before July 1, 1973, that provides payments based on length of residence in Alaska and being 65 or older. The Alaska Longevity Bonus is excluded under Section 1612(B)(2)(B) of the Social Security Act.
23. Payments to victims of Nazi persecution
Enacted August 1, 1994, the Nazi Persecution Victims Eligibility Act (P.L. 103-286) excludes from income and resources any payments made to persons because of their status as victims of Nazi persecution.
24. Japanese-American and Aleut restitution payments
The CAO will not count payments made under Title I of the Civil Liberties Act of 1988 and Title II of the Aleutian and Pribilof Island Act, enacted August 10, 1988. This includes payments to the survivors of Japanese-Americans who were interned or relocated during WW II. This exclusion continues as long as the payments are kept separate and identifiable.
If the payment is used to purchase real or personal property, the CAO will count the new resource unless it is excluded in another way. Interest on the payment is counted unless it is excluded in another way.
25. Payments to Indian tribes under federal public laws (Pub.L.)
The CAO will not count the following:
Payments to the Blackfeet and Gros Ventre tribes under the Act of 3/19/72 (Pub.L. 92-254)
Payments to the Grand River Band of Ottawa Indians under the Act of 10/18/76 (Pub.L. 94-540)
Payments to the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation under Section 2 of the Act of 10/10/78 (Pub.L. 95-433)
Payments to those tribes or groups under Section 7 of the Act of 10/9/73 (Pub.L. 93-134)
The CAO will not count the value surplus food donated by the U.S. Department of Agriculture.
The CAO will not count money from the Energy Crisis Assistance Program or the Emergency Energy Conservation Services Program.
The CAO will not count money paid under the Low Income Home Energy Assistance Act of 1981 (LIHEAP).
The CAO will not count money paid under the United States Housing Act of 1937.
30. Payments made to volunteers
The CAO will not count money paid to volunteers in the Foster Grandparent Program and other similar programs.
See the Medical Assistance Eligibility Handbook, Chapter 314, Students.
The CAO will not count the value of food grown by the individual and eaten by the individual or individuals in the individual’s household.
33. Corporation for National and Community Services (CNCS, formerly ACTION) programs
The CAO will not count money paid by volunteer service programs, such as Volunteers In Service To America (VISTA) (now Americorps*/VISTA), University Year for Action, special and demonstration volunteer programs, Retired Senior Volunteer Program (RSVP), Foster Grandparent Program, and Senior Companion Program.
34. Department of Defense (DOD) payments to individuals captured and interned by North Vietnam during the Vietnam Conflict
35. Victims compensation payments
The CAO will not count money paid by a state-administered victim’s compensation fund to cover expenses losses that resulted from a crime. If any money is left from a payment, the CAO will not count it as a resource for nine months.
NOTE: If any interest is earned on a payment, the CAO will count it as income or resources.
The CAO will not count payments made from any one of the uniformed services under 37 U.S.C. 310.
Updated February 3, 2022, Replacing April 11, 2017