|
Effective: March 1, 2009 |
|
|
20.05.05ar4 - Garnishment and Other Income Withholding (Archive) |
Archived: June 1, 2011 |
A garnishment or seizure of income is a withholding of an amount of earned or unearned income to satisfy a legal debt or obligation.
Income from a public assistance source that is withheld to repay a prior overpayment from that same source may affect how income is counted for Minnesota Health Care Programs. An overpayment occurs when a person or household receives benefits greater than the amount for which they are eligible.
Note: Do not apply the provisions in this section when using a long-term care (LTC) income calculation.
MinnesotaCare and MA Method A.
MA Method B, GAMC, MA-EPD, and Medicare Savings Programs.
Count income that is withheld from earned or unearned income to repay a legal debt or obligation.
Example:
Penny has earns $200 each week from her job at a restaurant. The restaurant withholds $50 per week from her paycheck due to a court-ordered garnishment for an unpaid credit card debt.
Action:
Count the entire $200 Penny earns each week as gross income. Do not deduct the $50 garnishment from her gross wages.
Do not count the amount that is withheld from income to repay a prior overpayment of benefits made by the same income source.
Example:
Roger is entitled to a VA payment of $400 per month. $150 is withheld to repay a prior VA overpayment.
Action:
Only count the $250 Roger actually receives as available unearned income.
MA Method B, GAMC, MA-EPD, and Medicare Savings Programs (MSP)
Count income that is withheld from earned or unearned income to repay a legal debt or obligation.
Do not count income that is withheld from unearned income if both of the following conditions are met:
l The income is being reduced to repay a prior overpayment from the same source; and
l The overpaid amount was previously counted as unearned income for MA or GAMC eligibility.
Example:
Larry has received MA for two years. He reports that his $300 per month VA check has been reduced by $100 to repay an overpayment incurred one year ago while he was receiving MA.
Action:
Only count the $200 that Larry receives. Do not count the $100 being withheld to repay the overpayment.
Example:
Mildred applies for MA for the first time. Her RSDI benefit of $500 has been reduced by $30 to repay a prior overpayment.
Action:
Count the full $500 RSDI benefit as available because the overpayment occurred before Mildred received MA.