Policy Changes Due to the Achieving a Better Life Experience (ABLE) Act, OPS170701 (Published July 10, 2017)
The CAO will exclude certain resources when deciding whether an individual is eligible for MA.
The following resources are excluded for GA-related categories:
Agent Orange Settlement Payments.
55 Pa. Code §§ & 178.83 178.161(a)(16)
The CAO will not count payments made from the Agent Orange Settlement Fund or any other fund set up under Agent Orange product liability lawsuits.
Burial spaces.
55 Pa. Code §§ 178.70 178.161(a)(9)
The CAO will not count certain burial spaces. (See Section 340.71, Burial Spaces.)
Earned income tax credit.
OBRA 1990 (Public Law 101-508)
The CAO will not count the advance monthly earned income tax credit (EITC) payment and the year-end EITC payment given as part of a federal income tax refund. The CAO will not count the payment in the month when it is received and the following month. Any amount left after that is counted as a resource. EITC payments include the following:
Supplemental Young Child Credit. This is available at the end of the year to a family with an infant who does not qualify for the dependent care credit. It is refunded in addition to the EITC payment.
Child Health Insurance Tax Credit. This is a refund of the amount paid by an employee for health insurance premiums if the coverage is for at least one child who is getting TANF-related MA. It is refunded in addition to the EITC payment.
Educational assistance.
The CAO will not count educational assistance in the form of loans, grants, scholarships and work study income.
Educational savings accounts.
The CAO will not count an educational savings account at a bank or other financial institution. This educational savings account must be in an account that gets interest. Any tuition account or college savings bonds purchased under the Tuition Account Program and college savings bonds are also exempt.
The account must be set up only to pay for tuition, books, and any other related expenses at an approved postsecondary or vocational school, community college, college, or university. The money must be held in a separate account and must be clearly identified “for educational purposes.”
Any funds deposited in the account and any interest earned by the account is not counted as long as the money stays in the account.
Any funds deposited in the account must be from earned income only.
Any amount (including interest) withdrawn from the account and used for educational expenses must not be counted.
The amount and dates of deposits and withdrawals must be proven by bank or financial institution statements or by papers from the educational institution showing that the funds are being saved and spent on educational activities.
Any funds that are withdrawn and spent for things other than education are considered a resource for the month in which they were withdrawn and used.
Home energy assistance benefits.
55 Pa. Code §§ 178.79 178.161(a)(6)
The CAO will not count home energy assistance (HEA) benefits. HEA benefits include, but are not limited to, payments for heating and cooling, storm doors, weatherization service, and blankets.
Household goods and personal effects.
55 Pa. Code §§ 178.66 178.161(a)(1)
The CAO will not count the value of household goods and personal items such as the following:
Furniture, major appliances, and other items used to keep a home.
Personal items of limited value, including clothing, jewelry, children's toys, family heirlooms, items of individual care, musical instruments, and hobby items.
Any items needed because of an individual's physical condition, including prosthetic devices, dialysis machines, motorized wheelchairs, hospital beds, and similar items.
Farm animals for domestic use, pets, and farm equipment and animals needed for employment.
Equipment needed for employment, rehabilitation, or self-care.
Irrevocable burial reserves.
55 Pa. Code §§ 178.72 178.161(a)(11)
The CAO will not count an irrevocable burial reserve.
Japanese-American and Aleut restitution payments.
55 Pa. Code §§ 178.61 55 Pa. Code §§ 178.161
The CAO will not count payments made under P.L. 100-383, Title I - Civil Liberties Act of 1988 and Title II - The Aleutian and Pribilof Island Act, enacted 8/10/88. This exclusion includes payments to the survivors of Japanese-Americans.
The exclusion continues as long as the payments are kept separate and can be identified as those payments. If the payment is used to purchase real or personal property, the CAO will count the new resource unless it can be excluded. Interest on the payment is counted unless it is excluded for another reason.
Life insurance.
55 Pa. Code §§ 178.70 178.161(a)(12) & (14)
The CAO will not count term insurance or other life insurance that does not build up a cash value. (See Section 340.4, Life Insurance.)
The CAO must not count life insurance with a face value (the amount printed on the policy) up to $1,500 for each insured individual. (See Section 340.4, Life Insurance.)
Low Income Home Energy Assistance Program (LIHEAP) benefits.
55 Pa. Code §§ 178.80 178.161(a)(8)
The CAO will not count LIHEAP payments for home energy assistance.
Motor vehicles.
55 Pa. Code § 178.67 178.161(a)(2)
The CAO will not count one motor vehicle. (See Section 340.5, Motor Vehicles.)
Pennsylvania Uniform Gifts To Minors Act (PUGMA) benefits.
55 Pa. Code §§ 178.78 178.161(a)13) GA
The CAO will not count a gift made to an individual under age 21 under PUGMA until the individual reaches age 21. The gift may be made under the following conditions:
The donor must be at least age 18.
The gift cannot be taken back.
The gift and any earnings from the gift must be under the control of an adult who looks after it.
The control cannot be transferred to the minor until he or she reaches age 21.
The CAO will count any amounts of money given to the beneficiary as income in the month it is given. If any money is left in the next month, the CAO will count the remaining amount as a resource unless the individual is under age 21.
When an individual reaches age 21, any funds left from a gift made before that birthday under PUGMA are counted as a resource.
Personal property of an SSI or SBP recipient.
The CAO will not count the personal property of an SSI or SBP recipient even if the SSI or SBP recipient is a legally responsible relative of a member of the applicant/recipient group.
Real property owned by an SSI or SBP recipient.
The CAO will not count real property owned by an SSI or SBP recipient even if the SSI or SBP recipient is a legally responsible relative of a member of the applicant/recipient group.
Real property used as a main home.
The CAO will not count resident property owned by an applicant or recipient. (See Section 340.62, Resident Property.)
Retroactive assistance payments.
The CAO will not count any retroactive assistance payments gotten as a result of a pre-hearing conference, a fair hearing decision, or a court order.
NOTE: A retroactive payment can be excluded only for the month that it is received and the following month. Any money left after the second month must be added to the other resources. The individual must provide proof of how and when the money was used.
Revocable burial reserves.
55 Pa. Code §§ 178.73 178.161(a)(10)
The CAO will not count a revocable burial reserve up to $1,500 in value. (See Section 340.722, Revocable Burial Reserves.)
Supplemental Nutrition Assistance Program (SNAP) benefits.
55 Pa. Code §§ 178.61(d) 178.161(a)(4)
The CAO will not count the value of SNAP that an individual gets.
Support or maintenance assistance benefits.
55 Pa. Code §§ 178.79 178.161(a)(7)
The CAO must not count in-kind support or maintenance assistance (SMA) benefits provided by a private, nonprofit organization. SMA benefits include in-kind provisions of food, clothing, temporary emergency shelter, furniture, appliances, and the like.
These resources are excluded:
Disaster relief assistance.
55 Pa. Code § 178.74 42 U.S.C. 5155(d) 62 P.S. 432.12 (a)
Any money and interest received as a result of a catastrophe declared as a major disaster by the President under the Disaster Relief Act of 1974 or another Federal law is not counted for nine months. The nine month period begins on the date the individual received the disaster assistance and ends on the last day of the ninth full month after the month the cash was received. The CAO will verify the receipt date and amount.
This initial nine month period may be extended to 18 full months if the individual shows good cause for not repairing or replacing the property for which the disaster relief was given. It is proof of good cause when circumstances beyond the individual’s control prevent repair or replacement within the nine month period.
NOTE: The individual must present proof from at least two contractors. Proof must show that the individual made a reasonable effort have the damaged property repaired or replaced within the initial period. If the disaster has resulted in a large volume of work needed in the area, the CAO may contact area contractors to determine the minimum time needed to complete the work. The CAO may give an extension if the individual shows that he still intends to make the repairs.
The CAO will keep the proof in the record, note any verbal evidence from individual contact and create an alert to review the situation before the end of the exclusion period.
The CAO will count as a resource any remaining cash and interest not used to repair or replace destroyed property beginning with the month after the nine month or 18 month period expires.
The CAO will determine if there is an overpayment due to excess resources if the money is spent for something other than the intended purpose.
Earned income tax credit.
20 CFR §§ 416.1210(o) 416.1235
The CAO will not count the advance monthly EIC payment and the year-end EIC payment refunded as part of Federal income taxes. The CAO will exclude the payment in the month it is received and the next month. Any part of the EIC remaining after the exclusion period is counted as a resource. This includes EIC payments received for:
Supplemental Young Child Credit - Available at the end of the year to a family with an infant who does not qualify for the dependent care credit. It is refunded in addition to the EIC payment.
Child Health Insurance Tax Credit - A refund of the amount paid by an employee for health insurance premiums if the coverage is for at least one child who is receiving TANF related MA. It is a refund in addition to the EIC payment.
Household goods and individual effects.
The CAO will not count the value of these resources:
Household goods including furnishings and equipment commonly found in or around a home and used in connection with the operation, maintenance and occupancy of the home.
Personal effects including, but not limited to, clothing, jewelry, items of individual care, recreation equipment, musical instruments and hobby items.
Any items required because of an individual’s physical condition, such as, but not limited to, prosthetic devices, dialysis machines, motorized wheelchairs, hospital beds and similar items regardless of value.
Housing assistance.
The CAO will not count Section 8 housing or utility subsidies, rehabilitation grants, or other Federal housing subsidies paid under:
United States Housing Act of 1937.
National Housing Act, Section 101 of the Housing and Urban Development Act of 1965.
Title V of the Housing Act of 1949, as provided by Section 2(h) of the Housing Authorization Act of 1976.
Income producing property.
The CAO will not count real or personal property used in a trade or business that is essential to self-support. See Section 340.633, Exclusion of Income Producing Property.
Irrevocable Burial Reserve.
The CAO may not count an irrevocable burial reserve if the irrevocable reserve is within the allowable limits. See Section 340.721, Irrevocable Burial Reserve.
Life insurance.
55 Pa. Code §§ 178.70 & 178.69
The CAO will not count term insurance or other life insurance that does not accumulate a cash value. See Section 340.42, Life Insurance.
The CAO will not count life insurance policies that have a total face value of $1,500 for each insured individual. Any cash value accumulated on these excluded life insurance policies is also excluded. See Section 340.42, Life Insurance.
Motor vehicle.
The CAO will not count one motor vehicle. See Section 340.5, Motor Vehicles.
Non-business property essential to self-support.
The CAO will not count tools, equipment, uniforms, and similar items required by an employer.
The CAO will not count non-business property needed for self-support including produce items for home consumption. See Section 340.632, Exclusion of Property Essential to Self-Support.
Payments/benefits provided by Federal statutes.
20 CFR §§ 416.1201, 416.1210(j) 416.1236(b)
The CAO will not count payments or benefits provided under a Federal statute other than Title XVI of the Social Security Act where Federal statute requires exclusion from resources.
Pennsylvania Uniform Gifts to Minors Act (PUGMA).
The CAO will not count a PUGMA gift made to an individual under age 21. The exclusion applies until the individual reaches age 21. The gift is made under these conditions:
The donor must be at least age 18.
The gift is irrevocable.
The gift and any earnings from the gift must be under the control of a custodian who manages, invests and dispenses the funds.
In most cases, control transfers to the minor when the minor reaches age 21.
The CAO will count any disbursements by the custodian to the beneficiary as income in the month disbursed. If any of the disbursed funds remain in the next month, the CAO will count the remaining amount as a resource.
When an individual reaches age 21, he CAO counts as a resource any funds remaining from a gift made previously under PUGMA.
Pension funds of the ineligible spouse.
55 Pa. Code § 178.91(e) 20 CFR § 416.1202
The CAO may exclude pension funds owned by the ineligible spouse. Pension funds are funds held in an Individual Retirement Account (IRA), as described by the Internal Revenue Code, or in a work-related pension plan including such plans for self-employed individuals, sometimes referred to as Keogh plans.
Proceeds from the sale of an excluded home.
The CAO will not count proceeds used or obligated to buy another excluded home. The individual must buy the new excluded home within three months.
Real property used as a principal place of residence.
Under certain conditions, the CAO will not count resident property the individual owns. See Section 340.62, Resident Property.
Replacement assistance.
The CAO will not count in-kind replacement assistance received for the purpose of repairing or replacing an excluded resource.
The CAO will not count assistance received to replace an excluded resource that is lost, damaged, or stolen.
The CAO will not count the cash and interest earned on the cash received for repair or replacement for the nine calendar months after the date the individual received the cash. The initial nine month period may be extended for up to an additional nine months if the individual has good cause for not replacing or repairing the resource.
NOTE: The CAO will count as a resource any remaining cash and interest beginning with the month after the end of the nine calendar month period. If the initial nine month period is extended, the CAO will count any remaining cash and interest beginning with the month after the good cause extension period ends.
If the good cause period is extended and the individual decides not to repair or replace the excluded resource, the CAO will count the funds as a resource, beginning the month he reports the change in intent.
Retroactive SSI or RSDI payments/benefits.
55 Pa. Code § 178.76 20 CFR § 416.1233
The CAO will not count retroactive SSI or RSDI benefits for the month the individual received retroactive benefits. The retroactive benefits are excluded for nine calendar months after the month the individual received the retroactive payment. The funds do not need to be in a separate account.
NOTE: The money, if put with other funds, must be identifiable using items such as individual records or institutional accounts.
Example: Ms. K. received a retroactive SSI payment on January 16. The payment is excluded for nine months, beginning on February 1st.
Under this provision, the CAO will not exclude a resource bought with the money unless that resource is excluded. If part of the payment remains after the end of the nine month period, the CAO counts it as a resource.
Revocable Burial Reserve.
The CAO will not count a revocable burial reserve with a value of $1,500 or less. The amount of this exclusion depends on whether there is life insurance and/or an irrevocable burial reserve. See Section 340.722, Revocable Burial Reserve. See Appendix B of this Chapter for worksheet to compute the countable part of the revocable Burial Reserve.
State and local relocation assistance.
20 CFR §§ 416.1210(q) 416.1239
The CAO will not count relocation assistance from a state or local government. The payment is excluded for nine calendar months beginning with the month after the receipt month.
Victims’ compensation payments.
20 CFR §§ 416.1210(p) 416.1229
The CAO will not count payments received as compensation for expenses incurred or losses suffered as a result of a crime. The payment is excluded for nine calendar months beginning with the month after the receipt month.
The individual or spouse must give proof that the amount received was compensation for expenses incurred or losses suffered as the result of a crime.
The CAO will not exclude interest earned on unspent victim's compensation payments from income or resources.
The CAO will not count the value of these resources as long as the resource is kept separate and identifiable:
Agent Orange settlement payments.
The CAO will not count payments made from the Agent Orange Settlement Fund or any other fund established due to the settlement of the Agent Orange Product Liability litigation.
Austrian reparation payments. OBRA 1990(P.L. 101-508)
The CAO will not count payments made under Section 500-506 of the Austrian General Social Insurance Act. These payments are made to individuals who suffered imprisonment or unemployment or were forced to flee Austria during the period March 1933 to May 1945 for political, religious, or ethnic reasons. The CAO will count the interest as income.
Corporation for National and Community Services (CNCS) (formerly Action programs).
The CAO will not count these payments made to individuals who have or are actively participating in volunteer service programs including:
Volunteers In Service To America (VISTA) (Now Americorps*VISTA).
University Year for Action.
Special and Demonstration Volunteer Programs.
Retired Senior Volunteer Programs (RSVP).
Foster Grandparent Program.
Senior Companion Program.
Dedicated financial institutional accounts.
The CAO will not count an account in a financial institution established for the sole purpose to receive and maintain SSI past-due benefits. Any accrued interest or other earnings on such accounts are excluded from resources. This exclusion will apply only if the SSI benefits plus interest earned on the SSI benefit are not combined with any other funds.
Department of Defense (DOD) payments to certain individuals captured and interned by North Vietnam.
The CAO will not count DOD payments to an individual who receives a payment because he or she was captured and interned by North Vietnam during the Vietnam Conflict. If the individual who was captured and interned is deceased, payment may be made to a surviving spouse or, if there is not spouse, to surviving child(ren), including the deceased individual’s biological and adoptive child(ren). Interest earned on unspent payments is excluded.
Food Assistance.
The CAO will not count the value of supplemental food assistance from the Women's, Infants', and Children's (WIC) program or the National School Lunch Act.
Federal Loans and Grants to undergraduate students.
The CAO will not count a grant or loan to an undergraduate student made or insured under a program administered by the Commissioners of Education under Section 507 of the Higher Education Amendments of 1968.
German reparation payments.
The CAO will not count payments made to survivors of the Holocaust under the Republic of Germany's Federal Law for Compensation of National Socialist Persecution, also known as the "German Restitution Act". The payments may be made periodically or in a lump sum.
Home Energy Assistance (HEA) benefits.
The CAO will not count home energy assistance (HEA) benefits. HEA benefits include, but are not limited to, payments for heating and cooling, storm doors, weatherization service and blankets.
Incentive allowances.
The CAO will not count incentive allowances under Title 1 of the Comprehensive Employment and Training Act of 1973 (87 State 849, 29 U.S.C. 821(a)).
Japanese American and Aleut restitution payments.
The CAO will not count payments made under P.L. 100-383, Title I - Civil Liberties Act of 1988 and Title II -The Aleutian and Pribilof Island Act enacted 8/10/88. This exclusion includes payments to the survivors of Japanese Americans.
The exclusion continues as long as the payments are kept separate and identifiable. If the payment is used to buy real or personal property, the CAO will count the new resource unless it can be excluded. The CAO will count interest on the payment as income.
LIHEAP.
The CAO will not count benefits for home energy assistance received under the Low Income Home Energy Assistance Program (LIHEAP).
Netherlands WUV payments to victims of persecution.
The CAO will not count these payments to individuals who were victims of persecution during World War II because of their race, religion, belief, or homosexuality during the German and Japanese Occupation of the Netherlands and the Netherland East Indies (now the Republic of Indonesia). As a result of that persecution, the individuals are suffering from illness.
Payments from energy employees occupational illness compensation program.
The CAO will not count lump sum payments and reimbursement of medical expenses paid to employees of the Department of Energy (DOE), or of private companies under contract with DOE, who suffer from specified diseases as a result of work in the nuclear weapons industry. Interest on the unspent payment is not excluded.
Payments received as restitution for misuse of benefits by a representative payee.
The CAO will not count the unspent portion of any payment received by an individual as restitution for Title II, Title VIII or Title XVI benefits misused by a representative payee. The payment is excluded for nine calendar months beginning with the month after the receipt month. A payment is made in the amount equal to the benefits misused because of the Social Security Administration’s (SSA) negligent failure to investigate or monitor a representative payee or because an organizational or individual payee misused the benefits, regardless of whether SSA was negligent.
Payments to Indian tribes
55 Pa. Code §§ 178.61(b) 178.61(c) & 178.61(l)
The CAO will not count these payments to Indian tribes:
Judgment payments under the March 18, 1972 act and the October 18, 1976 act.
Funds distributed per capita to, or held in trust for, members of any Indian tribe under the act of October 19, 1973.
Receipts distributed to members of certain Indian tribes referred to in Section 6 of the act of October 17, 1975.
Funds, assets or income under Section 6(b) of the Puyallup Tribe of Indians Settlement Act of 1989, P.L. 100-41 (25 U.S.C. 1773 h(c)).
Payments, funds, distributions, or income derived from them under Section 8 (b) of the Seneca Nation Settlement Act of 1990.
Payments to volunteers.
The CAO will not count payments from VISTA, Service Learning Programs and Special Volunteer Programs. These payments to volunteers are made under Section 404(g) of the Domestic Volunteer Services Act of 1973.
Payments under the Alaska Native Claims Settlement Act.
The CAO will not count tax exempt portions of payments received under Section 21(a) of the Alaska Native Claims Settlement Act.
Radiation exposure compensation trust fund payments.
The CAO will not count the one-time lump sum payment to an individual exposed to doses of radiation and determined to have contracted certain diseases after the exposure. The Federal Department of Justice makes payment to the individual or the individual’s survivors.
The CAO will not count relief payments from the Ricky Ray Hemophilia Relief Fund Act of 1998, P.L. 105-369, which provides for a single payment of $100,000 to certain individuals with a blood-clotting disorder who may have contacted an HIV infection from a blood transfusion. Payment is also for certain current and former spouses of these individuals who also contacted an HIV infection, for certain children of these individuals who also contacted an HIV infection, and for certain surviving spouses, children and parents of the above described individuals. These payments are excluded, regardless of when received:
Payments from Ricky Ray Hemophilia Fund.
Payments made from a fund established due to a class settlement in the case of Susan Walker v. Bayer. Corporation, al., 96-C-5024 (N.D.Ill).
Payments made in lieu of the class settlement.
Supplemental Nutritional Assistance Program (SNAP) benefits.
The CAO will not count the value of SNAP an individual receives.
Student financial assistance for attendance.
The CAO will not count student financial assistance for attendance costs an individual receives from a program funded in whole or in part under Title IV of the Higher Education Act of 1965, as amended, or under Bureau of Indian Affairs Student assistance programs. The assistance must be made available for tuition and fees normally required of a student carrying the same academic workload, as determined by the institution. The costs also include:
Rental or purchase of any equipment, materials, or supplies required of all students in the same course of study.
An allowance for books, supplies, transportation and miscellaneous personal expenses.
The student must be attending the institution on at least a half-time basis, under Section 14(27) of P.L. 100-50, the Higher Education Technical Amendments Act of 1987 (20 U.S.C. 108uu) or under Bureau of Indian Affairs student assistance programs.
Support or Maintenance Assistance (SMA) benefits.
The CAO will not count in-kind support or maintenance assistance (SMA) benefits given:
In-kind by a private, nonprofit organization.
As cash or in-kind assistance by a home heating oil or gas supplier.
By an entity providing home energy whose revenues are primarily derived on a rate-of-return basis and regulated by the Pennsylvania Utility Commission.
By a municipal utility providing home energy assistance.
Uniform 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.
USDA Surplus food donation.
The CAO will not count the value of surplus commodities donated by the United States Department of Agriculture.
VA benefit to Korea service veterans’ children with spina bifida.
The CAO will not count benefit payments to children of Korea service veterans who are diagnosed with spina bifida receive a benefit from the Department of Veterans Affairs (VA). These children receive one of three levels of a benefit from the VA based on the disability.
VA benefit to women Vietnam veterans’ children with certain birth defects.
20 CFR § 416.1236(a)(23) 38 U.S.C. 1812
The CAO will not count benefit payments to children of women Vietnam veterans born with certain birth defects may be eligible for monthly VA benefits. Qualification for this VA benefit depends on whether the birth defect is associated with the service of the child’s mother in Vietnam and whether this birth defect result in permanent physical or mental disability.
Vietnam veterans children with spina bifida.
20 CFR § 416.1236(a)(22) 38 U.S.C. 1802 & 38 U.S.C. 1812
The CAO will not count payment to children of Vietnam Veterans who are diagnosed with spina bifida.
Updated October 2, 2019, Replacing August 21, 2018