All Medicaid Programs

Obsolete Policy

 

Obsolete 1121 - 403 Unearned Income

Effective Date: July 1, 2005 - October 31, 2021

No Previous Policy

 

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

Income does not include money, goods or services received from the sale, exchange, or replacement of assets.  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.  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 Section 403-9 for explanation of Sales Contracts.)