Article 10, Section 3 Exempt Income

 

Table of Contents

TITLE

MPG CITE

Income Exemptions

10.3.1

Property Tax Refunds

10.3.2

Public Assistance and General Relief Grants

10.3.3

Federal Housing Assistance

10.3.4

Title XX Social Service Payments

10.3.5

Assistance Based on Need

10.3.6

Foster Care Payments

10.3.7

Work Incentive Program Earnings

10.3.8

Training Expense Allowance

10.3.9

Loans, Grants, Scholarships and Fellowships

10.3.10

Earnings of Children Under Age 14

10.3.11

Student Earnings Exemption

10.3.12

Job Training Partnership Act (JTPA) Payments

10.3.13

Veterans Educational Assistance Program (VEAP)

10.3.14

Payments to Victims of Crimes

10.3.15

Relocation Assistance Benefits

10.3.16

Holocaust Restitution Payments

10.3.17

Federal Payments to Indians and Alaskan Natives

10.3.18

VISTA Payments

10.3.19

Executive Volunteer Programs

10.3.20

Senior Citizens Volunteer Programs

10.3.21

Irregular or Infrequent Income

10.3.22

Fair Hearing Decision Penalty Payments

10.3.23

Veterans Aid and Attendance/Unusual Medical Expense Payments

10.3.24

$90 VA Payment to LTC Veterans or Surviving Spouse

10.3.25

Japanese-American and Aleutian Restitution Payments

10.3.26

Disaster Assistance Funds

10.3.27

Austrian Social Insurance Payments

10.3.28

Susan Walker v. Bayer Corporation Payments

10.3.29

CalWORKs Restricted Accounts Interest

10.3.30

National Defense Authorization Act of 1997 Payments

10.3.31

CalWORKs Diversion Payments

10.3.32

Ricky Ray Hemophilia Relief Fund Act Payments

10.3.33

Radiation Exposure Compensation Trust Fund Payments

10.3.34

Interest and Dividends Received From Property Included in the Property Reserve (ABD and Medicare Savings Programs Only)

10.3.35

IHSS Plus Waiver Income

10.3.36

In-Home Caregiver Wages

10.3.37

In-Home Care Services Payments

10.3.38

Clinical Trial Income

10.3.39

Apportionment of Income Exemptions

10.3.40

Post 9/11 GI Bill     

10.3.41

Gifts to Children with Life-Threatening Conditions

10.3.42

 


10.03.01 Income Exemptions

 

A.
Overview

Certain items of available earned and unearned income are exempt and are not counted to compute the share of cost. The income that remains after applying the exemptions detailed in this Article is not exempt.

 

Income detailed in the sections below is exempt and not counted to compute the share of cost. These exemptions apply to all applicants/beneficiaries, unless otherwise specified.

MEM

50519

 


10.03.02 Property Tax Refunds

 

A.
Refunds or Rebates

Refunds or rebates of taxes on real property are exempt.

 

MEM

50523

 

B.
Senior Citizen Rent Assistance

The Senior Citizens Rent Assistance rebate is exempt from consideration as income in the month received.

 

NOTE:  If not utilized in the month received, the rebate is considered property beginning with the first day of the month following the month of receipt.

MEPM

10D

 


10.03.03 Public Assistance and General Relief Grants

 

A.
Treatment

Assistance from the following programs is exempt:

 

·   AFDC

·   SSI/SSP

·   General Relief

·   Cash Assistance Program for Immigrants (CAPI)

·   Indochinese refugee or Cuban refugee program.

MEM

50525

 


10.03.04 Federal Housing Assistance

 

A.
Treatment

Federal housing assistance in the form of rent subsidies, loans, or partial house payments are exempt if issued under the following acts:

 

·   U.S. Housing Act of 1937

·   National Housing Act

·   Title V of the Housing Act of 1949

·   Housing and Development Act of 1965.

MEM

50529

 


10.03.05 Title XX Social Service Payments

 

A.
Treatment

Payments received to pay for social services provided in accordance with Title XX of the Social Security Act are exempt. This income is exempt whether in-kind or as a direct payment to the client to pay for services. Such services will have been approved by a social worker and include, but are not limited to:

 

·   In-Home Supportive Services

·   Child care; e.g., money received for child care expenses which is approved by a social worker in accordance with Title XX of the Social Security Act.

·   Training and rehabilitation services, including payment for training expenses.

 

NOTE:  In-Home Supportive Services (IHSS) payments received by a disabled person to pay for IHSS services received are exempt. If the spouse of the disabled person receives the payment for care of the IHSS recipient, the payment is income to the MFBU. See MPG Article 10, Section 6, for deduction information when a client pays for IHSS services from his/her own income.

MEM

50527

 


10.03.06 Assistance Based on Need

 

A.
Assistance Paid By the State or Any Political Jurisdiction of the State

Assistance based on need that is paid by the state or any political jurisdiction of the state as detailed in MPG 10.03.6b, is exempt, if the payment is all of the following:

 

·   Made on a regular basis (at least once every three months), to a specific group or class of people in similar circumstances or situations;

·   Made in cash, which may be currency or any negotiable instrument; and

·   Issued in an amount based on the need of the individual.

MEM

50528

 

B.
Assistance Based on Need

Assistance based on need includes payments from following and similar sources:

 

·   Short-Doyle (for mental health services).

·   Regional Centers for the developmentally disabled.

·   Probation departments.

MEM

50528

 

C.
Public Law Payments

Payments made as a result of public law, when the law specifically exempts the payment from eligibility and share of cost determinations, are considered assistance based on need and, therefore, exempt.

 

Public law payments that are exempt include, but are not limited to the following:

 

·   Home Energy Assistance - Public Law (PL) 94-385 and PL 97-35

 

PL 94-385 provides for a Low Income Weatherization Assistance Program (LIWAP) through the Department of Energy. This law also provides for a Low Income Energy Assistance Program (LIEAP) through the Department of Health and Human Services. LIEAP is composed of the Energy Crisis Intervention Program (ECIP) and the Home Energy Assistance Program (HEAP).

 

These programs provide payments either to the recipient or to vendors on behalf of the recipient for the purpose of home energy assistance (e.g., heating, cooling, weatherization, blankets, storm doors, etc.).  These payments are exempt as income or resources.

 

·   Payments Distributed Under the Main Indians Claims Settlement Act of 1980 – PL 94-420

 

Entitlement to or receipt of payment by an individual in accordance with the Maine Implementing Act and the Maine Indians Claims Settlement Fund are exempt.

MEPM

10C

 

D.
Adoption Assistance

Adoptive Assistance payments are exempt income when determining the Medi-Cal share of cost for the adoptive family.

ACWDL 92.83

 


10.03.07 Foster Care Payments

 

A.
Treatment

Payments for the care of a foster child, received by a licensed foster parent, from any source are exempt, with the following exceptions:

 

·   Payments made to a foster parent when a foster child is temporarily absent from the foster home for one month or more are not exempt.

·   Payments made to ensure availability of a room or rooms for foster child are not exempt.

 

NOTE: If the County specifically designates a portion of the foster care payment for care and supervision, that portion is not exempt.

MEM

50531

 


10.03.08 Work Incentive Program (WIN)

 

A.
Treatment

Earnings from public service employment under the Work Incentive Program (WIN) program are exempt.

MEM

50526

 


10.03.09 Training Expense Allowance

 

A.
Treatment

The allowance for training expenses paid by the Department of Rehabilitation to persons participating in that department’s training program is exempt.

MEM

50530

 


10.03.10 Loans, Grants, Scholarships and Fellowships

 

A.
Title IV Student Assistance Payments

Student assistance payments made to graduate or under-graduate students under Title IV are exempt. The exemption is allowed only to the Title IV assistance that is actually paid to the student. The following steps shall be taken to receive the exemption:

 

Step

Action

1

The student must submit a financial assistance award letter or student financial assistance verification form from a college, school, or financial aid office.

2

The worker will confirm that the award letter includes:

·   the amount of Title IV assistance the student qualifies for

·   the amount that will be paid to the student

 

These loans/grants/ scholarships include, but are not limited to:

 

·   PELL Grants (formerly Basic Educational Opportunity Grants (BEOG))

·   Federal Supplemental Educational Opportunity Grants (SEOG)

·   Cal Grants (A, B and C)

·   College Work Study

·   Federal Parent Loan for Undergraduate Students (PLUS) Loans

·   Federal Supplemental Loans for Students

·   Bureau of Indian Affairs Educational Assistance

·   National Student Savings Demonstration Program

·   Federal Consolidation Loans

·   Special Child Care for Disadvantaged

·   Upward Bound

ACWDL 94-06

 

B.
Federally Insured

Any loan or grant to an undergraduate student that is made or insured by the Federal Secretary of Education is exempt from consideration as income.

MEM

50533

 

C.
Based on Need

Educational loans or grants to undergraduate students awarded on the basis of the student’s need are exempt. These include but are not limited to:

 

·   Extended Opportunity Program loan and grants.

MEM

50533

 

D.
Special Funds for ABD Persons

Funds for readers or educational scholarships which meet all of the following conditions are exempt:

 

·   Provided to an ABD person enrolled in a California public school or an institution of higher learning

·   Awarded by an educational institution

·   Not available to meet basic needs

 

 

E.
Limited Use

Other loans, grants, scholarships or fellowships made to undergraduates or graduate students are exempt if:

 

·   The loan, grant, scholarship or fellowship document specifically limits the use of the funds for purposes other than current living expenses; and

·   The loan, grant, scholarship or fellowship would not be available if used for any purpose other than the one specified.

MEM

50533

 

F.
Non-Exempt Student Loans, Grants, Scholarships and Fellowships

The following are non-exempt student loans, grants, scholarships, and fellowships:

 

·   Student loans and grants made to undergraduate students not made or insured by the Federal Secretary of Education.

·   Other grants or fellowships not requiring repayment.

·   Loans, grants or scholarships to graduate students except those meeting the criteria detailed in MPG 10.03.10d or 10.03.10e above.

 

NOTE:  Student loans requiring repayment that are not exempt, as detailed in this section, are considered property in the month received rather than income.

MEPM

9D

 

MEM

50533

 


10.03.11 Earnings of Children Under Age 14

 

A.
Treatment

Earnings of children under 14 years of age are exempt.

 

MEM

50544

 


10.03.12 Student Earnings Exemption

 

A.
Treatment

The earnings of an AFDC MN or MI child in the MFBU, including earnings from the Job Training Partnership Act (JTPA) after the six months exemption (see MPG 10.03.13), are exempt when the child meets the student exemption criteria.

 

NOTE: The term “child” includes a parent under 21 who is a child in his or her parent’s Medi-Cal case.  This exemption also applies to an AFDC-MN parent, who meets the definition of child per MPG Article 1, Section 1.

MEM

50543

 

B.
Exemption Criteria

The earnings of a child are exempt when:

 

·   The child is a full-time student (i.e., a student who has a school schedule equal to a full-time curriculum, as defined by the school attended); or

·   The child has a school schedule that is equal to at least half of a full-time curriculum and is not employed full-time. For purposes of this regulation, full-time employment is defined as working 173 hours or more per month.

 

NOTE: School attendance means enrollment and attendance in a school, college, university, or in a course of vocational or technical training designed to fit the child for gainful employment, and includes participation in the Job Corps program under the Economic Opportunity Act.

MEM

50543

 

C.
Duration of Exemption

This exemption is allowed on earnings received during the school term, between terms, or during vacations if the child plans to return to school following the vacation period.

MEM

50543

 

D.
Documentation

Student status will be verified and documented on Form CSF 37. Verification will be obtained at intake or granted

MEM

50543

 


10.03.13 Job Training Partnership Act (JTPA) Payments

 

A.
JTPA Payments Received by a Child

JTPA payments received by a child will be handled as follows:

 

Payment

Treatment

JTPA Payment

Always exempt from income.

Earnings of a child received for participating in JTPA programs.

Exempt for up to six months per calendar year.

 

NOTE: Children under 14 do not receive JTPA earnings payments; thus, regulations regarding exempt earnings of a child under age 14 do not apply.

MEM

50539

 

B.
JTPA Payments Received by an Adult

JTPA payments received by an adult will be handled as follows:

 

Payment

Treatment

JTPA Payment, other than earnings which reimburse adults for actual training, transportation or child care expenses

Always exempt from income.

Amounts exceeding the actual training, transportation or child care expenses.

Not exempt.

MEM

50539

 


10.03.14 Veteran Educational Assistance Program (VEAP)

 

N.
Veterans Educational Assistance Program (VEAP)

VEAP payments will be handled as follows:

 

VA Contribution

Treatment

One-third

Is exempt as income.

Two-thirds

Id income for educational purposes.

 

NOTE:  The veteran may elect to withdraw his/her contribution, but forfeits entitlement to matching funds from the VA. When a veteran voluntarily withdraws his/her own contribution, the entire amount is exempt from consideration as income. (See MPG Article 9 for treatment as property.)

 

VEAP is not the same as the GI Bill. None of the GI Bill is exempt, and is considered unearned income for educational purposes. See MPG Article 10, Section 2, for further details regarding these programs.

MEPM

10P

 


10.03.15 Payments to Victim of Crime

 

A.
Treatment

Payments made under the California Victims of Crimes program are exempt.

MEM

50534

 


10.03.16 Relocation Assistance Benefits

 

A.
Treatment

Housing Relocation Assistance Benefits are exempt if paid by a public agency to a person who has been relocated as a result of a program of:

 

·   area redevelopment

·   urban renewal

·   freeway construction

·   any other public development involving demolition or condemnation of existing housing

 

NOTE: Payments are exempt if received as a one-time, lump-sum payment or as a monthly allotment.

MEM

50535

 


10.03.17 Holocaust Restitution Payments

 

A.
Treatment

The following Holocaust restitution payments are exempt.  Payments received as a result of persecution by Nazi Germany, any other Axis regime, any other Nazi controlled or Nazi-allied country on the basis of:

 

·   race

·   religion

·   physical disability

·   mental disability

·   sexual orientation

 

NOTE:  This exemption includes any interest which is included as part of the payment. It also includes any payments made to an individual’s heirs or estate.

MEM

50536

 

ACWDL

03-50

 

B.
Verification

Holocaust restitution payments may be verified with any of the following:

 

·   grant award letter

·   copy of the check

 

The verification provided must shows that this payment is made due to persecution by Nazi Germany, any other Axis regime, any other Nazi controlled or Nazi-allied country on the basis of:

 

·   race

·   religion

·   physical disability

·   mental disability

·   sexual orientation

 


10.03.18 Federal Payments to Indians and Alaskan Natives

 

A.
Treatment

This Section provides a list several federal payments made to Indians and Alaskan natives and the treatment of these payments for Medi-Cal purposes.

MEM

50537

 

B.
Public Law 90-507

Payments made to Indians under Public Law 90-507 are considered personal property (as detailed in MPG Article 9, Section 6) rather than income.

 

C.
Public Law 87-775 and 92-254

Payments made to Indians under Section 6 of Public Law 87-775 and Public Law 92-254 are exempt.

 

D.
Indian Claims Commission or Court of Claims Judgments

Payments made as a result of any judgment of the Indian Claims Commission or the Court of Claims in favor of any Indian tribe are exempt.

 

 

E.
Native Claims Settlement Act

Payments made to Alaskan Natives under the Alaskan Native Claims Settlement Act are exempt. Income received from stock investments under this Act is not exempt.

 

F.
Restricted Land or Other Property Held in Trust Payments

Payments of up to $2000 per year to an individual member of any Indian tribe from restricted lands or other property held in trust by the federal government or an agency of the federal government, under Section 13736 of Public Law 103-66 are exempt.

 

The beneficiary/recipient must provide documentation from the Bureau of Indian Affairs that the income is from restricted lands held in trust by the federal government or is received under Public Law 103-66.

ACWDL

94-73

 

G.
Payments Obtained from Lands Held in Trust and Distributed by Federal Government

Payments obtained from lands held in trust and distributed by the federal government to members of the following Indian tribes are exempt.

-  Bad River Bank of the Lake Superior Tribe of Chippewa Indians of Wisconsin.

-  Blackfeet Tribe, Blackfeet, Montana.

-  Cherokee Nation of Oklahoma, Oklahoma.

-  Cheyenne River Sioux Tribe, Cheyenne River, South Dakota.

-  Crow Creek Sioux Tribe, Crow Creek, South Dakota.

-  Lower Brule Sioux Tribe, Lower Brule, South Dakota.

-  Devil’s Lake Sioux Tribe, Fort Totten, North Dakota.

-  Fort Belknap Indian Community, Fort Belknap, Montana.

-  Assinboine and Sioux Tribes, Fort Peck, Montana.

-  La Courte Oreilles Band of Lake Superior Chippewa Indians, Lac Courte and Oreilles, Wisconsin.

-  Keweenaw Bay Indian Community, L’Anse, Michigan.

-  Minnesota Chippewa Tribe, White Earth, Minnesota.

-  Oglala Sioux Tribe, Pine Ridge, South Dakota.

-  Rosebud Sioux Tribe, Rosebud, South Dakota.

-  Shoshone-Bannock Tribe, Fort Hall, Idaho.

-  Standing Rock Sioux Tribe, Standing Rock, North and South Dakota.

-  Seminole Indians, Florida.

-  Pueblos of Zia and Jemez, New Mexico.

-  Stockbridge Munsee Indian Community, Wisconsin.

-  Burns Indian Colony, Oregon.

 


10.03.19 VISTA Payments

 

A.
Treatment

Payments made under the Domestic Volunteer Services Act of 1973 to VISTA volunteers are exempt.

MEM

50538

 


10.03.20 Executive Volunteer Program

 

A.
Treatment

Payments for supportive services or reimbursement of out-of-pocket expenses made to persons serving in the Service Corps of Retired Executives (SCORE) and the Active Corps of Executives (ACE) pursuant to Section 418 of Public Law 93-113 are exempt.

MEM

50540

 


10.03.21 Senior Citizens Volunteer Programs

 

A.
Treatment

The following compensation received by beneficiaries who are 60 years of age, or older is exempt:

 

·   volunteer services performed under the Retired Senior Volunteer program

·   Foster Grandparents program

·   Older Americans Community Service program of the National Older Americans Act

MEM

50541

 


10.03.22 Irregular or Infrequent Income

 

A.
Casual or Inconsequential Income

The first $60 of casual or inconsequential unearned income per calendar quarter shall be exempt if either of the following conditions are met:

 

·   The income is received not more than twice per quarter; or

·   The income cannot be reasonably anticipated.

MEM

50542

 

B.
Earned Income

Earned income not exceeding $30 per calendar quarter is exempt if either of the following conditions are met:

 

·   The income is received not more than twice per quarter.

·   The income cannot be reasonably anticipated.

 


10.03.23 Fair Hearing Decision Penalty Payments

 

A.
Treatment

Ball v. Swoap penalty payments of $100, paid by DHS to beneficiaries whose Fair Hearing decisions are not timely, are exempt from consideration as income.

ACWDL

87-28

 


10.03.24 Veterans Aid and Attendance (AA) and Unusual Medical Expense (UME) Payments

 

A.
Overview

AA payments provide money to eligible individuals residing in the home or in a medical institution who cannot feed or dress themselves, care for their needs, or remain out of bed. For purposes of determining eligibility to AA, an individual residing in the home is any individual who is not residing in a medical institution on a permanent basis. Medical institutions include nursing homes, acute care facilities, and the State-operated veterans homes located in Yountville and Barstow.

MEM

50507

50772

 

B.
AA Payment Treatment

AA Payments will be treated as follows:

 

AA Payments Received by…

Are considered…

an individual residing in the home

exempt

an individual residing in a medical facility with a community spouse or minor child

exempt when determining the individual’s share of cost

 

C.
AA Payments Received by an Institutionalized Individual

Under Spousal Impoverishment rules AA payments:

 

·   Must be excluded from the institutionalized individual’s income prior to determining how much income is available to allocate to the community spouse.

·   When determining the community spouse’s Medi-Cal eligibility, the portion of an institutionalized individual’s AA payment, which is given to the community spouse is countable income to the community spouse in calculating his/her unmet needs when determining spousal allocation.

·   Received by an individual residing in a medical facility without a community spouse or minor child, the first $90 is exempt.

 

NOTE: AA exemption criteria in MPG 10.03.24b and 10.03.24c apply to both veterans and their widows or widowers who may receive a portion of the deceased veteran’s AA payment.

 

D.
Unusual Medical Expenses (UME)

Pursuant to an injunction from the Sherman v. Griepentrog UME lawsuit, workers must disregard that portion of needs-based VA pension or needs-based compensation that is the direct result of an UME when determining a beneficiary’s share-of-cost. This exemption applies regardless of the living situation, or place of residence, of the individual receiving the UME payment.

ACWDL

93-51

MEM

50507

50772

 

E.
Verification

Payments will be verified by viewing the VA award letter or by following the CW5 referral process detailed in MPG Article 4, Section 12.  AA and UME payments will be verified when the applicant/beneficiary states receipt or if not sure of receipt of AA and/or UME payments at:

 

·   Intake

·   Redetermination

·   Whenever a veteran enters a nursing home or other medical facility

·    Veteran’s dependent enters a nursing home or other medical facility

 

NOTE: Granting will not be delayed pending verification of AA or UME payments. Instead, the amount of the VA check, which is not otherwise exempt, will be counted as income when determining the share-of-cost. When Form CW5 is returned indicating the amount paid for AA and/or UME, the worker will readjust the share-of-cost for previous months following procedures detailed in MPG Article 12.

 


10.03.25 $90 VA Payment to LTC Veterans

 

A.
VA Payments Received by an Individual in LTC

The first $90 of Veterans Administration (VA) payments received by an individual in LTC is exempt. VA payments in excess of $90 are included in the individual’s SOC by counting the over-$90 portion of VA income.

 

MEM

50507

50772

 

B.
VA Payments Received by a Veteran’s Surviving Spouse in LTC

A veteran’s surviving spouse residing in LTC with no children and receiving a portion of the deceased veteran’s pension will be treated in the same manner as veterans in LTC who do not have a spouse or child. The surviving spouse’s VA payments in excess of $90 are included in the individual’s SOC.

 


10.03.26 Japanese American Aleutian Restitution Payments

 

A.
Treatment

The following Japanese American Aleutian restitution payments are exempt. Restitution payments made by the U.S. federal government or, effective January 1, 2000 from the Canadian government, made to:

 

·   Japanese-Americans (or if deceased, to their survivors)

·   Aleuts who were interned or relocated during World War II

 

NOTE: All interest earned on exempt restitution payments is unearned income and is used to compute the share-of-cost. See MPG 9-6 for property treatment.

ACWDL

00-14

 


10.03.27 Disaster Assistance Funds

 

A.
Treatment

Disaster Assistance funds from federal, state, or local government agencies, or disaster assistance organizations are permanently exempt and shall not be counted as income or property.

 

NOTE: Interest earned on funds exempt under this provision is exempt from income and from property. If the exempt funds have been commingled with nonexempt funds, interest accruing on the accounts must be prorated.

ACWDL

92-08

 


10.03.28 Austrian Social Insurance Payments

 

A.
Treatment

Payments which were based in whole or in part, on wage credits pursuant to Paragraphs 500-506 of the Austrian General Social Insurance Act (GSIA) and granted to individuals who suffered a loss, presumably due to unemployment, resulting from the individual’s imprisonment, flight from Austria, or other reasons relating to political, religious or ethnic persecution, during the period from March 1933 through May 1945, are exempt from income consideration. This includes any interest that is included in the payment. This exemption does not cover interest accruing from retained GSIA payments, although such interest may qualify for the irregular or infrequent income exemption under Section 3, item 2U.

ACWDL

95-21

03-50

 

B.
Verification

The client must present both:

 

·   An award letter from an Austrian pension insurance agency (may be written in German) in favor of the client, which contains the language:

 

“Die Beguenstigungsvorschriften fuer geschaedigte aus politischen oder religiosen gruenden oder aus gruenden der abstammung wurden angewendet (500ff ASVG).” Translation:

 

“The regulations which give preferential treatment for persons who suffered because of political or religious reasons or reason of origin were applied (500ff ASVG).”

 

·   A check copy or stub showing an Austrian pension payor.

 

If the client does not produce...

Then he/she must make a reasonable attempt to obtain it. If still unable to obtain...

the award letter

the award letter, he/she may attest, under penalty of perjury, that he/she was imprisoned or unemployed in, or forced to flee from, Austria during the period 1933-1945 because of political or religious reasons

a check stub or copy

the check stub or copy, the client may attest, under penalty of perjury, that a particular account deposit represents such a payment

 

NOTE: The client must produce either a check copy/stub or an award letter. In the absence of both such documents, the client’s attestations do not suffice as verification for this exemption.

 


10.03.29 Susan Walker v. Bayer Corporation Payments

 

A.
Treatment

The Susan Walker v. Bayer Corporation court settlement is a result of a class action lawsuit involving individuals who received contaminated blood products in the process of medical treatment. Payments received under this settlement are exempt.

ACWDL

98-05

 


10.03.30 CalWORKs Restricted Account Interest

 

A.
Interest Earned on a Restricted Account

Interest earned on a restricted account is exempt as income as long as it is deposited directly into the restricted account by the financial institution.

ACWDL

98-50

 

B.
Interest Withdrawn from a Restricted Account

Interest withdrawn from a restricted account to meet qualifying expenses is permitted and exempt. (See MPG 9-6) for a description of qualifying expenses.] The only other allowable withdrawal of interest from a restricted account is when the account balance exceeds $5,000.

 

Excess interest withdrawn in the month it is accrued is considered nonexempt unearned income. (See MPG 9-6) for treatment of excess interest remaining in a restricted account past the month accrued.

 


10.03.31 National Defense Authorization Act of 1997 Payments

 

A.
Treatment

Payments made as a result of the National Defense Authorization Act of 1997, to persons captured and interned by North Vietnam, are exempt as income.

ACWDL

99-04

 

B.
Verification

Recipients are sent a letter from the Office of the Assistant Secretary of Defense that identifies the payment as having been made in accordance with the National Defense Authorization Act of 1997.

 


10.03.32 CalWORKs Diversion Payments

 

A.
Treatment

The CalWORKs Diversion Program provides one-time payments to families who appear eligible to CalWORKs. These payments are to enable a family member to accept a job offer, or continue in their current job, and thus avoid the need for public assistance. Payments received under this program are exempt as income.

ACWDL

00-03

 


10.03.33 Ricky Ray Hemophilia Relief Fund Act Payments

 

A.
Treatment

Payments received under the Ricky Ray Hemophilia Relief Fund are for individuals with blood-clotting disorders, who contracted human immunodeficiency virus in the process of medical treatment, due to contaminated blood products. Payments received from this fund are exempt as income.

ACWDL

01-20

 


10.03.34 Radiation Exposure Compensation Trust Fund Payments

 

A.
Treatment

The Radiation Exposure Compensation Trust Fund provides payments to individuals who were exposed to fallout emitted from nuclear testing in Nevada during the 1950’s and for a brief period in 1962. Payments received from this fund are exempt as income.

ACWDL

01-65

 


10.03.35 Interest and Dividends Received from Property Included in the Property Reserve

 

A.
Overview

Effective August 1, 2005, interest and dividends paid to an individual from his or her Medi-Cal countable property is exempt for the purpose of determining income eligibility for certain programs that use SSI/SSP income rules. This applies to programs specifically for Aged, Blind and Disabled individuals, including the following Medi-Cal and Medicare Savings programs:

 

·   Aged and Disabled Federal Poverty Level (A&D FPL) Program

·  Aged, Blind and Disabled Medically Needy (ABD MN) Program (not AFDC MN)

·   250% Working Disabled (WD) Program

·   Pickle Program

·   Disabled Adult Child (DAC) Program

·   Disabled Widow(er)s (DW) Program

·   Long Term Care (for aged or disabled individuals)

·   No Longer Disabled Adult and Child Programs

·   Tuberculosis Program

·   Qualified Medicare Beneficiary Program (QMB)

·   Specified Low-Income Medicare Beneficiary (SLMB) Program

·   Qualified Individual Program

·   Qualified Disabled Working Individual Program (QDWI)

ACWDL

05-17

 

B.
Interest or Dividends Payments

Interest or dividend payments will be treated as follows:

 

Interest or Dividends paid to an individual from his/her property…

Will be…

which has been counted in the property reserve

exempt

or from countable property of another family member in the MFBU or Sneede Mini Budget Unit (MBU)

exempt

which is not included in the property reserve

included as income

when evaluating eligibility for non-ABD programs

included as income

 

C.
Examples

Below are examples of how exemptions are applied:

 

Example 1:

 

Suppose we have a family consisting of a married couple with two mutual children being evaluated for eligibility for the AFDC MN program. Assume the two children are deprived because the dad, who is the principal wage earner for the family, is unemployed. The family receives a monthly $9 interest payment from the couple’s countable resources each month. This monthly interest is not exempt as interest and dividend income because the interest and dividend exemption discussed in this ACWDL does not apply when there are no ABD MN individuals in the family.

 

Example 2:

 

Same as example 1 above except that the dad, instead of being unemployed, is disabled. Assume that the family is being evaluated for eligibility for the Medically Needy Program. Because the dad is disabled, interest income from any property that is subject to being counted by Medi-Cal for purposes of determining the dad’s eligibility for Medi-Cal is exempt.

 


 10.03.36 IHSS Plus Waiver Income

 

A.
Treatment

The income received under the In-Home Supportive Services (IHSS) Plus Waiver is exempt as income for Medi-Cal purposes. These exempt payments include:

 

·   Caretaker wages that are paid to a parent of an IHSS Plus Waiver minor child recipient for services provided to that child (for purposes of this exemption, a minor child is defined as a child under 21),

·   Caretaker wages that are paid to a spouse of an IHSS Plus Waiver recipient for services provided to that recipient,

·   Restaurant meal allowances supplied by IHSS, and

·   The advance payment made to IHSS Plus Recipients to pay their caregivers directly for services provided under IHSS Plus Waiver.

ACWDL

05-29

 

ACWDL

06-04

 


10.03.37 In-Home Caregiver Wages

 

A.
Treatment

Effective January 01, 2005, in-home caregiver wages received by a spouse or parent for care of a spouse or minor child in receipt of federal, state or local government in-home services program shall be exempt as income for Medi-Cal purposes. This exemption includes payments received by a parent or spouse of an IHSS Residual recipient. For the purpose of this exemption, a minor child is defined as a child under 21.

ACWDL

07-02

 


10.03.38 In-Home Care Services Payments

 

A.
Treatment

Effective January 01, 2005, payments made by California Department of Social Services (CDSS) to an in-home care recipient for the purpose of purchasing in-home care services, including restaurant meals, shall be exempt as income for Medi-Cal purposes.

 


10.03.39 Clinical Trial Income

 

A.
Treatment

Effective April 3, 2011 and expiring October 5, 2015, income and resource exclusion will apply to the first $2,000 of compensation received per year for participating in clinical trials that research treatment of a rare disease or condition. 

ACWDL

12-07

 

B.
Clinical Trial Exclusion Criteria

Clinical trials will have to meet the following  criteria in order to be excluded:

 

1

Approved by an Institutional Review Board (IRB).

2

Involve research and testing.

3

Target a rare disease or condition.

 

To determine that payments meet the criteria workers must:

 

Step

Action

1

Obtain the following:

·   the informed consent form; or

·   an official letter from the administrator of the clinical trial, with the following information:

-  name and location of the clinical trial

-  name of disease or condition

-  name, phone, and address of the clinical trial administrator

2

Use the information provided to determine if the clinical trial is IRB approved.  Make this determination by locating the clinical trial in Clinicaltrials.gov or results database.

 

If ...

Then ...

yes

go to step 3

no

the income exclusion does not apply

3

Look for the following details in the clinical trial information:

·   type of clinical trial, which is usually listed under the primary purpose, the title, or stated in the purpose summary; and

·   name of the condition.

 

Use the information collected above to determine if the clinical trial involves research and testing.

 

If ...

Then ...

yes

go to step 4

no

the income exclusion does not apply

4

Verify whether the clinical trial targets a rare disease or condition as outlined in MPG 10.03.39c.

 

If ...

Then ...

yes

the income exclusion applies

no

the income exclusion does not apply

ACWDL

12-07

 

C.

Determining Rare Disease or Condition

 

Some commonly known rare diseases are:

 

Amyotrophic Lateral Sclerosis (Lou Gehrig's disease)

Crohn's Disease

Cystic Fibrosis

Cystinosis

Duchenne Muscular Dystrophy

Huntington's Disease

Tourette Syndrome

 

If the condition listed in the summary:

·         is not part of this list, and

·         the documentation provided does not indicate the condition is a rare disease or condition.

Verify the disease or condition against the Office of Rare Disease Research’s database at: http://rarediseases.info.nih.gov/.

ACWDL

12-07

 

D.
Entering Clinical Trial Income in CalWIN

Case workers will follow the Steps below when entering Clinical Trial Income in CalWIN.

 

Step

Action

1

The first $2000 excluded Clinical Trial income will be entered in CalWIN as follows:

 

If case consist of...

Then the income will be...

CalWORKs

entered in Display Unearned Income Summary as net countable income for CalWORKs

CalFresh & Medi-Cal Combo

entered as in Display Unearned Income Summary as net countable income for Food Stamps

Medi-Cal Only

excluded from CalWIN entries

2

Documented case actions in Case Comments.

3

Set a CalWIN Case Alert to monitor when the beneficiary has reached the maximum $2000 exclusion for Medi-Cal.

 

When ...

Then the worker must...

the maximum $2,000 exclusion is reached

Follow Steps 4 through 6 below to begin counting Clinical Trial Income being received.

4

Add a new Net Countable Income for Medi-Cal record to enter countable income for Medi-Cal.

5

Follow QR/PB regulations for changes to this type of income for CalWORKs and CalFresh.

6

Documented case actions in Case Comments.

ACWDL

12-07

 


10.03.40 Apportionment of Income Exemptions

 

A.
Apportionment of Income Exemptions

Income exemptions will be apportioned over time using the procedures for apportioning income over time. See MPG Article 10, Section 4.

MEM

50517.1

 


10.03.41 Post 9/11 GI Bill

 

A.
General

The Post 9/11 Veterans Educational Assistance Act of 2008 expands educational benefits for military veterans who served since
September 11, 2001.  These changes took effect October 1, 2011.

 

Payment changes include a new reduced housing stipend for online (distance learning) learners and prorates housing allowance payments based on the number of enrolled units taken by the veteran.

 

There are three payments associated with the Post 9/11 GI Bill:

 

• Tuition and Fees

• Monthly Housing Allowance

• Annual Books and Supplies Stipend of $1,000.

 

MPG LTR 758 (07/12)

ACWDL 12-15

 

B.

Treatment of Post 9/11 Payments

 

The Post 9/11 payments are treated as follows:

 

Type of Payment

Treatment

Tuition and Fees

Tuition and fees are paid directly to the educational institution

These payments are not counted as income to the veteran. This treatment applies to all Medi-Cal programs.

Monthly Housing Allowance

The monthly housing allowance is paid directly to the veteran on a monthly basis.

The monthly housing allowance is treated as unearned income for all Medi-Cal programs.

Annual Books and Supplies Stipend

The annual books and supplies stipend of $1,000 is paid directly to the veteran on a proportional basis based on enrolled units.

Two different treatments apply:

·         Aid to Families with Dependent Children/Medically Needy (MN), 1931(b) and Medically Indigent (MI) treatment. The annual books stipend is excluded to the extent that the proceeds are used to meet the non-tuition educational expenses.

·         Aged Blind and Disabled/MN treatment. The annual books stipend is excluded as income.

 

Post-9/11 GI Bill payments are identified as VA-CH 33 payments. The VA award letter is acceptable evidence to be used to document type, amount, and frequency of payments.

 

The annual books and supplies stipend will be verified in accordance with MPG Article 4, Section 7 – Verification/Documentation Procedures

 

MPG LTR 758 (07/12)

ACWDL 12-15

 


 10.03.42  Gifts to Children with Life-Threatening Conditions

 

A.
Gifts to Children with Life-Threatening Conditions

Effective August 1, 1999, in-kind gifts of any amount, and cash gifts up to $2,000 in a calendar year, are exempt from income if given by a tax-exempt organization to a child under age 18 who has a life-threatening condition.  For the purpose of this exemption, a child is defined as a child who has not yet reached his/her 18th birthday.  A tax-exempt organization must be an organization as described in Section 501(c)(3) of the Internal Revenue Code (IRC) of 1996 and exempt from taxation under Section 501(c) of the IRC.  This income exemption applies to the MN Program, other programs using the MN rules, and the Section 1931(b) Program.

 

MPG LTR 761 (4/13)

ACWDL

99-31

 

B.
Verification of Life-Threatening Condition

To verify the life-threatening condition, the worker shall obtain a credible written declaration from the adult(s) legally responsible for the child that states that the child has a life-threatening condition.  The written declaration must include the general nature of the child’s condition.  If the declaration is questionable, a oral or written corroboration from a physician may be requested.

 

MPG LTR 761 (4/13)

ACWDL

99-31

C.
Verification of Tax-Exempt Status

To verify that the organization making the gift meets the requirement of a tax-exempt organization, the worker shall obtain a copy of the organization’s IRS 501(c) exemption certificate.

 

MPG LTR 761 (4/13)

ACWDL

99-31