Medicaid Policy
Medicaid Policy
Previous Policy (415-11 was previously found in 403-12 until November 1, 2021)
ABD and Long-term Care
Royalties that are received as payments for the use of natural resources are counted as unearned income. For example, payments made to the owner of a mine, oil well, timber tract, or other natural resources for the extraction of a product are considered royalties and are unearned income.
Payments received for the sale of natural resources such as timber are not considered royalties, rather they are an exchange of assets from one form to another, i.e., from timber to cash. However, if the individual has a lease agreement for timber land such that the lessee can manage and cut timber, the lease payments do represent payment of a royalty. This is true even if the lease agreement states that the lease payment is dependent on the amount of timber actually harvested.
Policy for American Indians/Alaska Natives. See 417-14 and 521-5 for policy on funds received from the extraction of natural resources that result from the exercise of federally-protected rights. In many cases, the funds received do not count as income.