*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***

Chapter 20 - Income

Effective:  June 1, 2011 - Roomer/Boarder Income

Archived:  June 1, 2016 (Previous Versions)

Roomer/Boarder Income

Roomer/boarder income is income that a client receives for lodging, meals, or related services from people living in the client's home.

Reminder:  Allow earned income disregards and deductions from roomer/boarder income when calculating a person’s total countable income. See Income Calculation for more information on disregards and deductions.

Roomer/boarder income is different from rental property.

For information on rental property income, see Rental Income.

What Constitutes A Roomer/Boarder?

MA Method A.

MA Method B, MA-EPD and Medicare Savings Programs (MSP).

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What Constitutes A Roomer/Boarder?

Roomer/boarder situations include the following:

l  A roomer lives with the household and pays for lodging only.

l  A boarder eats with the household and pays for meals only.

l  A roomer and boarder lives and eats with the household and pays for lodging and meals.

Note:  A roomer/boarder can include a family member who is not part of the MHCP household.

MA Method A

To determine the net self-employment income:

l  Allow a flat rate deduction for each roomer/boarder. The flat rate is determined by the situation. The roomer/boarder standard amounts are based on the:

n  Roomer.

n  Boarder.

n  Roomer and boarder.

l  Subtract the flat rate deduction for each roomer/boarder from total roomer/boarder gross receipts to get net self-employment.

MA Method B, MA-EPD and MSP

To determine the net self-employment income, deduct allowable expenses from gross self-employed receipts, as follows:

l  Allow only expenses for providing a room, food or both to a roomer, boarder or roomer/boarder which have been verified.

To determine the expense of providing a room:

n  Prorate the total shelter expenses based on the percentage of the number of rooms for rent to the total rooms in the house.

n  Do not include bathrooms or attics, or basements unless they are converted to living spaces.

n  Any expenses strictly related to a particular rental room are deducted in total from the rent for that room. Such expenses are not prorated.

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