Medicaid Policy                                                                 

415 Unearned Income

Effective Date: November 1, 2021

Previous Policy (415 was previously found in 403 until November 1, 2021)

1.    Unearned income is cash (checks, direct deposits, etc.) or in-kind benefits received by an individual for which a person performs no service.

2.    Income does not include money, goods or services received from the sale, exchange, or replacement of assets.

a.    The proceeds from the transfer of a resource are still a resource, not income. This includes money received from a reverse equity mortgage or a viatical settlement of an insurance policy.

b.   The transferred resource could have been exempt or countable; however, an exempt resource may be sold or exchanged for a different type of resource that counts as an available resource, i.e., an exempt car sold for cash. (See 415-8 for explanation of Sales Contracts.)