Medicaid Policy
Medicaid Policy
A. Definition
Income in-kind is a benefit received by the individual in a form other than a cash benefit or payment.
1. Earned income in-kind is countable income for all programs.
2. If the individual did not perform any service for the benefit, it is unearned income in-kind.
With the exceptions noted below for Aged, Blind and Disabled programs and Long-term Care policy, if the individual worked for the benefit, it is earned income in-kind. This includes the value of shelter or other items received instead of a cash wage.
B. ABD and Long Term Care
When an individual receives in-kind income for the following services, the income is treated as unearned income in-kind, not earned income in-kind. Unearned income for shelter does not count for nursing home or waiver programs (415-10).
1. Domestic services provided in the home of the employer.
2. Agricultural services.
3. Services that are not in the regular course of the employer's business or trade.
4. In-kind income to members of the Uniformed Services.
5. Shelter provided to employees on the employer's business premises, for the employer's convenience, and, if shelter, acceptance by the employee is a condition of the employment.
If the in-kind income the individual receives for any of the above services is shelter, see 415-10 to decide if some of it must be counted as income. Only count the value of unearned income in-kind for shelter expenses. Unearned income in-kind that is not shelter and cannot be used to get shelter does not count as income.
C. Family, Child and Pregnant Medically Needy Programs
Unearned income in-kind does not count. It is all exempt.
D. MAGI
1. See 440-2 for earned income counting rules for MAGI programs.
2. Unearned income in-kind is not countable.