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15.3 Exempt/Disregarded Income

15.3.1 Adoption Assistance

15.3.2 Agent Orange Settlement Fund

15.3.3 Combat Pay

15.3.4 Crime Victim Restitution Program

15.3.5 Disaster and Emergency Assistance

15.3.6 Dottie Moore Payments

15.3.7 Foster Care

15.3.8 General Income Disregard

15.3.9 IDA Payments

15.3.10 Inconsequential

15.3.11 Kinship Care

15.3.12 Life Insurance

15.3.13 Nutrition Benefits

15.3.14 Payments to Native Americans

15.3.15 Payments to Nazi Victims

15.3.16 Radiation Exposure Compensation Act

15.3.17 Refugee "Reception and Placement" (R&P) payments

15.3.18 Refugee Cash Assistance (RCA)

15.3.19 Reimbursements

15.3.20 Relocation Payments

15.3.21 Repayments

15.3.22 Special Programs

15.3.23 Spina Bifida Child

15.3.24 Susan Walker Payments

15.3.25 Travel Tickets

15.3.26 VA Allowances

15.3.26.1 Residents of the State Veterans Home

15.3.27 Wartime Relocation of Citizens

15.3.28 W2 Payments

15.3.29 The American Recovery and Reinvestment Act (ARRA) of 2009

15.3.30 Subsidized Guardianship Payments.

 

 " Disregard ” and "exempt" in this instance means "do not count.”  When you are calculating the total amount of income a person has received, disregard the following kinds of income:

15.3.1 Adoption Assistance

Disregard adoption assistance payments.

15.3.2 Agent Orange Settlement Fund

Disregard payments received from the Agent Orange Settlement Fund or any other fund established in settling "In Re: Agent Orange product liability Settlement Fund litigation, M.D.L. No. 381 ( E.D.N.Y. )".

 

Apply this disregard retroactively to January 1, 1989 and continue to disregard these payments for as long as they are identified separately.

15.3.3 Combat Pay

Disregard combat zone pay that goes to the household that is in excess of the military person's pre-deployment pay.  The exclusion lasts while the military person is deployed to the combat area.

  

If the amount of military pay from the deployed absent family member is equal to or less than the amount the household was receiving prior to deployment, count all of the income to the household.  Any portion of the military pay that exceeds the amount the household was receiving prior to deployment to a designated combat zone should be excluded when determining the household’s income.

 

Example 1: John's wife Bonnie and their daughter have an open Medicaid case.  John is in the military stationed overseas, his monthly income is $1,000.  John sends his wife $1,000 every month.  

 

When John is deployed to a combat zone his pay is increased to $1,300 a month, which is deposited into a joint account.  Because the $300 is combat zone pay, it is exempt income and not counted in the determination.  The pre-combat pay of $1,000 is budgeted as unearned income for Medicaid.

15.3.4 Crime Victim Restitution Program

Disregard any payments received from a state established fund to aid victims of a crime.   

15.3.5 Disaster and Emergency Assistance

Disregard major disaster and emergency assistance payments made by federal, state, county, and local agencies, and other disaster assistance organizations.

15.3.6 Dottie Moore Payments

Disregard any penalty payment paid as a result of the Dottie Moore lawsuit.

 

These court-ordered $50-$200 penalty payments can be imposed when the IM Agency or Child Support Agency ( CSA ) does not correctly process child support refunds.

15.3.7 Foster Care

Disregard foster care payments.  Foster care payments are considered to be the income of the child or adult who is receiving foster care and these payments are exempt income for the foster care recipient.  However in some situations the foster care recipient uses these payments to pay the foster parent for their room and board expenses.  The room and board payments that are received by the foster parent are not disregarded and should be counted as non-exempt earned income (See 15.5.15) for the foster parent's Medicaid eligibility determination.  

 

15.3.8 General Income Disregard

Disregard $20 from the EBD fiscal test group's net income.

15.3.9 Individual Development Account (IDA) Payments

Disregard Individual Development Account (IDA) payments that are made in the form of matching funds to buy a home, start a business, or to complete post-secondary education.  

15.3.10 Inconsequential

Disregard income which is infrequent, irregular, and has no appreciable effect on ongoing need.

 

Infrequent income is defined as income that an individual receives only once during a calendar quarter from a single source, and which the individual did not receive in the month immediately preceding that month or in the month immediately subsequent to that month, regardless of whether or not those payments occur in different calendar quarters.

 

Income is considered to be received irregularly if an individual cannot reasonably expect to receive it.

 

Exclude the following amount of income which is received either infrequently or irregularly:

15.3.11 Kinship Care

Disregard kinship care payments.

15.3.12 Life Insurance

Disregard life insurance policy dividends.

15.3.13 Nutrition Benefits

Disregard benefits received from the following:

  1. Emergency Food and Shelter National Board.

  2. Federal Emergency Management Assistance  (FEMA).

  3. FoodShare coupon allotment.

  4. Home produce for household consumption.

  5. National School Lunch Act.

  6. Supplemental food assistance under the Child Nutrition Act of 1966.

  7. Title VII Nutrition Program for the Elderly , Older Americans Act of 1965.

  8. USDA Child Care Food Program.

  9. USDA donated food and other emergency food.

  10. WIC - the supplemental food program for women, infants, and children.

15.3.14 Payments to Native Americans

Disregard the following payments to Native Americans:

  1. Menominee Indian Bond interest payments.

  2. All judgment payments to tribes through the Indian Claims Commission or Court of Claims.

  3. Payments under the Alaskan Native Claims Settlement Act.

  4. Payments under the Maine Indian Claims Settlement Fund.

  5. Payments under PL 93-124 to the Sisseton-Wahpeton Sioux Tribe, except individual shares over $2,000.

  6. Payments under PL 93-134 to the Maricopa Ak-Chin Indian Community, Navajo Tribe, Coast Indian Community of the Resighini Rancheria, Stillaguamish Tribe, Pueblo of Taos Tribe, Walker River Paiute Tribe, and White Earth Band of the Minnesota Chippewa Tribe, except individual shares over $2,000.

  7. Payments under PL 94-114 to the Bad River Band and Lac Courte Oreilles Band of Chippewa Indians and the Stockbridge Munsee Indian Community of Mohicans.

  8. Payments under PL 96-318 to the Delaware Tribe of Kansas and of Idaho.

  9. Payments under PL 96-420 to the Houlton Band of Muliseet Indians, the Passamoquoddy, and Penobscot.

  10. For EBD Medicaid cases, under PL 98-64, disregard all Indian judgment funds held in trust by the Secretary of the Interior for an Indian tribe and distributed on an individual basis to members of the tribe.  Also disregard interest and investment income from these funds.

  11. Payments under PL 99-346, Saginaw Chippewa Indian Tribe of Michigan.

  12. Payments under PL 99-377 to the Mille Lacs, Leech Lake, and White Earth, MN, reservations.

  13. Payments under PL 101-41, Puyallup Tribe of Indians Settlement Act of 1989.

  14. Payments under the Distribution of Judgment Funds Act of 1987 to the Cow Creek Band, Umpqua Tribe.

  15. Payments under the Distribution of Indian Judgment to the Crow Creek and Lower Brule Sioux except individual shares over $2,000.

  16. Disregard Tribal Per Capita payments from gaming revenue up to the first $500 of the monthly payment per individual. If the payments are received less than monthly, prorate the gross payment amount over the months it is intended to cover and disregard $500 from the monthly amount.

 

This applies to eligibility determinations for BadgerCare Plus and all Medicaid subprograms for elderly, blind, or disabled persons except:

 

Senior Care and Long Term Care programs such Institutional Medicaid, Family Care (FC) and Home and Community Based Waivers (HCBW) including Partnership and Pace.  For these subprograms, count all income from Tribal Per Capita payments from gaming revenue as unearned income.

 

  1. Per capita payments from a tribe that come from natural resources, usage rights, leases or royalties.

  2. Payment from natural resources, farming, ranching, fishing, leases or royalties from land designated as Indian trust land by the Department of Interior (including reservations and former reservations).

  3. Money from selling things that have cultural significance.

15.3.15 Payments to Nazi Victims

Disregard payments made under PL 103-286 to victims of Nazi persecution.

15.3.16 Radiation Exposure Compensation Act

Disregard payments from any program under the Radiation Exposure Act (PL 101-426) paid to persons to compensate injury or death due to exposure to radiation from nuclear testing ($50,000) and uranium mining ($100,000).  The federal Department of Justice reviews the claims and makes the payments.  If the affected person is dead, payments are made to his/her surviving spouse , children, parents, or grandparents.

 

Apply this disregard retroactively to October 15, 1990 and continue to disregard these payments for as long as they are identified separately.

15.3.17 Refugee Cash Assistance (RCA)

Disregard cash payments from the Refugee Cash Assistance (RCA) program.  RCA is administered by Wisconsin Works agencies and is made available for refugees who do not qualify for Wisconsin Works.  

15.3.18  Refugee "Reception and Placement" (R&P) payments

Disregard federally funded "Reception and Placement" (R &P) payments made to refugees during the first 30 days after their arrival in the U.S.  R & P payments are made by voluntary resettlement agencies and may be a direct payment to the refugee individual/family or to a vendor.

15.3.19 Reimbursements

A reimbursement is a payment which a person receives for out-of-pocket expenses.  Disregard reimbursements for expenses an assistance group member has incurred or paid.  Do not disregard reimbursements for normal household living expenses (rent, clothing, or food eaten at home).

 

Here are some examples of reimbursements you should disregard:

  1. For job or training related expenses.  The expenses may be for travel, food, uniforms, and transportation to and from the job or training site.  This includes travel expenses of migrant workers.

  2. For volunteers' out-of-pocket expenses incurred during their work.

  3. Medical or dependent care reimbursements.

  4. Reimbursement from the Indianhead Community Action Agency (Ladysmith) under its JUMP Start Program for start-up costs to set up an in-home child care business in the person's home.

  5. Reimbursements received from the Social Services Block Grant Program for expenses in purchasing Social Services Block Grant services, for example, transportation, chore services, and child care services.

 

The reimbursement payment should not be more than the person’s actual out-of-pocket expenses.  If it is more, count the excess amount as unearned income.

 15.3.20 Relocation Payments

Under s. 32.19, Wis. Stats., relocation payments are available to displaced persons.  The following are examples of costs which the relocation payments are intended to cover: moving expenses, replacement housing and property transfer expenses. Disregard the amounts paid by any governmental agency or organization listed in s. 32.02, Wis. Stats.  Disregard Title II, Uniform Relocation Assistance and Real Property Acquisition Policies Act payments.  Its purpose is to treat persons displaced by federal and federally aided programs fairly so that they do not suffer disproportionate injuries as a result of programs designed for the public's benefit.

 

Disregard Experimental Housing Allowance Program (EHAP) payments.  Its purpose is to study housing supply.  Test areas, which include Brown County, were selected throughout the United States, and contracts were entered into prior to January 1, 1975.  A sample of families was selected to receive monthly housing allowance payments.

 

For Medicaid applicants/members, disregard housing assistance payments received under the following Acts:

  1. United States Housing Act of 1937.

  2. The National Housing Act.

  3. Section 101 of the Housing and Urban Development Act of 1965.

  4. Title V of the Housing Act of 1949.

  5. Section 202(h) of the Housing Act of 1959.

15.3.21 Repayments

A repayment is money the member has received from an income maintenance program and must give back because of a program error or violation.  Since s/he is not entitled to the money, s/he must repay it.  Therefore it should not be counted as income to the member.

 

Disregard the following repayments:

  1. Money withheld from an economic assistance check due to a prior overpayment.

  2. Money from a particular income source that is voluntarily or involuntarily paid to repay a prior overpayment received from that same source of income.

 

If money from a particular income source is mixed with money from other types of income, disregard only an amount up to the amount of the current payment from the particular source.

 

Example 2: Richard receives $50 a month from the Veterans Administration ( VA ) and $250 from Social Security.  The income from the two sources is mixed together in one lump of $300.  If the VA overpays Richard by $200, he can pay back to the VA only the $50 a month he receives from the VA.  If he repays more, for instance, $75 a month, disregard only $50.

 

  1. Social Security income used to repay an overpayment previously received from the Social Security Administration, whether SSA or SSI .

15.3.22 Special Programs

Disregard income from all of the following:

  1. Active Corp. of Executives ( ACE )

  2. All wages paid by the Census Bureau for temporary employment related to Census 2010

  3. Emergency Fuel Assistance

  4. Foster Grandparents Program

  5. Governmental rent or housing subsidy, including reimbursements due to federal regulatory changes in computing HUD housing rent

  6. Homestead Tax Credit

  7. Low Income Energy Assistance Program

  8. Programs funded under Title V of the Older Americans Act of 1965 (15.5.14 Title V - Older Americans Act of 1965), except wages or salaries, which are counted as earned income.

  9. Retired Senior Volunteer Program (RSVP)

  10. Service Corp. of Retired Executives (SCORE)

  11. University Year for Action Program (UYA)

  12. Volunteers in Service to America ( VISTA )

  13. Wisconsin's Family Support Program (s. 46.985, WI Stats.)  This program funds the unique needs of severely disabled children.  They may be a vendor or a money payment

  14. Senior Companion Program

  15. AmeriCorps State and National, and AmeriCorps NCCC

15.3.23 Spina Bifida Child

Disregard payments made under PL 104-204 to any child of a Vietnam veteran for any disability resulting from the child's spina bifida.

15.3.24 Susan Walker Payments

Disregard payments received from the class action settlement of Susan Walker vs. Bayer Corporation.  These payments are to hemophiliacs who contracted the HIV virus from contaminated blood products.

15.3.25 Travel Tickets

In Medicaid cases, disregard the value of any commercial transportation ticket which the member, his/her spouse or parents (if the member is a minor ) receives as a gift if it is:

  1. For travel among the 50 states, District of Columbia, American Samoa, Guam, Northern Mariana Island, Puerto Rico, and the Virgin Islands, and

  2. Not converted to cash.

15.3.26 VA Allowances

Disregard the following VA allowances:

  1. Unusual medical expenses that are received by a veteran, their surviving spouse, or dependent.  

  2. Aid and attendance and housebound allowances received by veterans, spouses of disabled veterans and surviving spouses.  

 

Unusual medical expenses, aid and attendance, and housebound allowances for institutionalized and community waiver cases, in eligibility and post-eligibility determinations, except for residents of the State Veterans Homes at King or Union Grove (see 15.3.26.1 Residents of a State Veterans Home).

 

Example 3: Jack is a single veteran living in his home.  He is disabled (as determined by the VA) and receives VA pension benefits in the amount of $1,450 per month.  Because he requires assistance with his daily living tasks, Jack receives an aid and attendance allowance which is part of the $1,450.  The aid and attendance allowance that Jack receives is $589 per month.  Aid and attendance is disregarded income.  

 

$1,450 VA pension

-    589 aid and attendance allowance (disregarded income)

$   861 budgetable income

  

Example 4: Donald is a married veteran living with his wife and two children.  He is disabled (as determined by the VA) and receives VA compensation benefits in the amount of $2,600 per month.  He does not receive aid and attendance, housebound, or unusual medical expense allowances.  

 

The full $2,600 is budgetable income to the household.

15.3.26.1 Residents of a State Veterans Home

For any veteran who resides at a State Veterans Home at King or Union Grove, in the eligibility determination, exempt the amounts identified by the VA as unusual medical expenses, aid and attendance, and housebound allowances.

 

In the post eligibility test, exempt $90 for  those who meet the following conditions:

  1. S/he receives aid and attendance, unusual medical expense or housebound allowance payments in an amount greater than $90, and

  2. S/he is a veteran who has no spouse or child or is a childless surviving spouse of a veteran.

 

Example 5:  John is a veteran residing at the State Veterans Home at King.  His total monthly income consists of a $90 VA pension and a $55 annuity payment.  The $90 VA pension is totally disregarded in eligibility and post eligibility determinations.  The personal needs allowance for institutionalized members is deducted from the $55 annuity payment.  John’s remaining budgetable income in the Medicaid post-eligibility determination is $10, and that $10 will be applied to his patient liability.

 

 

Example 6:  Scott is a veteran residing at the State Veterans Home at King.  His total monthly income consists of a $590 VA pension ($200 of which is for unusual medical expenses) and a $50 annuity payment.  The portion of the VA pension for unusual medical expenses is totally disregarded in the Medicaid eligibility test.  The $50 annuity payment and remaining $390 of the VA pension is non-exempt income.  For the post-eligibility test, only $90 of the VA pension is disregarded.  The patient liability calculation includes the personal needs allowance, so Scott will have to contribute $505 to his patient liability.

 

Eligibility Calculation

$590 VA Pension

+  50 Annuity

$640

-200 (exempt income)

$440 countable income

 

 

Liability Calculation

$590 VA Pension

+ 50 Annuity

$640

-   90 (exempt income)

-   45 (personal needs)

$505  patient liability

15.3.27 Wartime Relocation of Citizens

Disregard restitution payments under PL 100-383 to individual Japanese-Americans (or their survivors) and Aleuts who were interned or relocated during WW II.  There is no child support and maintenance disregard for Medicaid.

15.3.28 W2 Payments

Disregard Wisconsin Works ( W2 ) payments for Transitional Jobs and Community Service Jobs.  Do not disregard payments for Trial Jobs.

15.3.29 The American Recovery and Reinvestment Act (ARRA) of 2009

Disregard the one time payments of $250 sent to SSI, Veterans, Railroad Retirement, and Social Security recipients as a result of The American Recovery and Reinvestment Act of 2009.

15.3.30 Subsidized Guardianship Payments.

Disregard Subsidized Guardianship payments.

 

 

 

 

 

This page last updated in Release Number: 14-02

Release Date: 12/18/14

Effective Date: 01/01/14