*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016.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:  April 1,  2013

20.25.05 - Excluded Income

Archived:  June 1, 2016 (Previous Versions)

Excluded Income

Some sources of income are excluded for purposes of determining income eligibility.

Exclude income from the following sources for all health care programs.

l  Agent Orange Settlement Fund payments.  Payments made in connection with the case of In re Agent Orange Product Liability Litigation. Payments came from a fund created by manufacturers of Agent Orange who agreed to pay into a settlement fund. Payments began in March 1989. Qualifying veterans received at least one payment a year for the life of the program. Qualifying survivors of deceased veterans received a single lump sum payment. The settlement fund is now closed as all funds have been distributed.

l  Bills Paid by a Third Party. Payment of a client’s bill by a third party to a provider of goods or services. Bills paid by a third party include, but are not limited to:

n  Minnesota Supplemental Aid or Group Residential Housing payments made directly to a facility.

n  Emergency payments to a utility company made by an emergency assistance program such as Emergency General Assistance (EGA) or Emergency Minnesota Supplemental Aid (EMSA).

l  Blood Product Settlement payments. Payments made pursuant to the class settlement of Susan Walker v. Bayer Corp., et al, and to the release of any claims in that case that were entered into in lieu of class settlement.

l  Child Care and Development Block Grant Act payments. Federally funded child care assistance payments made to low income families or to children with special needs. These payments are from the Child Care and Development Fund (CCDF) and under the Child Care and Development Block Grant Act.

l  Class Action Settlement agreement in Jensen et al v. Minnesota Department of Human Services, et al. Payments received by class members are excluded.

l  Clinical Trial Participation Payments.  The first $2,000 a person receives during a calendar year as compensation for participation in a clinical trial that involves the research and testing of medical treatments for a rare disease or condition. In order to qualify for the exclusion, the clinical trial must have been reviewed and approved by an institutional review board. This exclusion expires October 5, 2015.

Note:  For Retroactive MA, do not exclude from income any compensation received before April 3, 2011.

l  Cobell Settlement for American Indians.  Payments made as income in the month received and as an asset for one year from the date of receipt. Exclude payments whether issued as lump sums or as periodic payments. This exclusion will apply for 12 months beginning with the month of receipt and applies to all members of the household.

Note:  Accept the verbal or written statement of applicants and enrollees of the date and amount of the excluded settlement payment.

l  Consumer Support Grant (CSG) payments. This includes both cash and non-cash payments provided under this program.

Note:  A client may use CSG funds to pay a family member for providing needed services. Consider payments from CSG funds as self-employment income for the family member. The family member’s self-employment income may need to be deemed back to the CSG recipient if required by deeming guidelines.  

l  Corporation for National and Community Service (CNCS) payments. Payments to volunteers, including the following payments authorized under the Domestic Volunteer Services Act:  

n  AmeriCorps VISTA.

n  University Year for VISTA (UYV)

n  Urban Crime Prevention Program.

n  Special Volunteer Programs under Title I.

n  Senior Corps:

m Retired Senior Volunteer Program (RSVP).

m Foster Grandparent Program.

m Senior Companions.

n  Demonstration Programs under Title II.

Note:  Count payments to employees administering these programs as earned income.

l  Crime Victim payments. Payments made to compensate crime victims for losses resulting from the crime.

l  Disaster Assistance. Payments issued pursuant to a presidential declaration of disaster or emergency. These payments may be made by the federal government (including, but not limited to, grants from the Federal Emergency Management Agency (FEMA)), states, local governments, and disaster relief organizations such as the Red Cross and Salvation Army.  Count disaster and emergency assistance payments that are not issued pursuant to a presidential declaration of disaster, unless they can be excluded under another provision.  

l  Family Support Grant (FSG) payments. This includes both cash and non-cash payments provided under this program.

Note:  A client may use FSG funds to pay a family member for providing needed services. Consider payments from FSG funds as self-employment income for the family member. The family member’s self-employment income may need to be deemed back to the FSG recipient if required by deeming guidelines.  

l  Federal Relocation Assistance. Relocation Assistance for displaced persons under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, the Housing and Redevelopment Act of 1965, or the Housing Act of 1965. This assistance is paid when the government requires an individual to move.

l  Food and Nutrition Program payments. This includes assistance provided by:

n  Programs established under the Child Nutrition Act. This includes the Women, Infants, and Children Nutrition Program (WIC) and federally funded school breakfast and milk programs.

n  National School Lunch program.

n  Food Support Program (formerly Food Stamps).

n  Minnesota Food Assistance Program.

n  Minnesota Grown Supplemental Food Program.

l  Home Produce. Home produce consumed by the client or the client’s household.

l  Housing and Urban Development (HUD) subsidies. Rental payments made directly to a landlord through the Housing and Urban Development (HUD) agency, including Section 8 payments made through the Housing and Redevelopment Authority, and refunds or rebates from HUD for excess rents charged.

l  Individual Development Accounts (IDA). Federal and non-federal matching funds deposited into Individual Development Accounts.

l  James Zadroga 9/11 Health and Compensation Act of 2010. . Payments made to a worker or volunteer, or if deceased, his or her heir, under the World Trade Center (WTC) Litigation Settlement or distributed by the WTC Captive Insurance Company. These payments are considered disaster assistance.

l  Japanese and Aleutian Restitution payments. Reparation payments to certain United States citizens of Japanese ancestry and resident Japanese aliens and certain eligible Aleuts under Public Law 100-383.

l  Loans. This includes:

n  The principal portion of repayments on a loan owed to the client.

Note:  Count interest payments received by the client as income.

n  Loans which the client has a legal obligation to repay. Verify that the lender expects repayment.

Exception:  Some student loans are counted as income. See Student Financial Aid Income.

l  Low Income Home Energy Assistance Program (LIHEAP) payments. Federal block grant that provides funds to the State for energy assistance (including weatherization) to low income households. The LIHEAP in Minnesota is the Energy Assistance Program (EAP). See Housing-Related Assistance for more information on these programs.

l  Military Salary Reductions. Mandatory salary reduction amounts for military service personnel that are used to fund basic educational assistance.

l  Nazi Persecution payments. These include:

n  Austrian Reparation payments (also known as Austrian Social Insurance payments). Payments based, in whole or in part, on wage credits granted under Paragraphs 500-506 of the Austrian General Social Insurance Act.

n  German Reparation payments.

n  Netherlands Act (WUV) payments.

n  Other payments received as a result of being a victim of Nazi persecution.

l  Program participation incentive payments. Incentive payments or cash-like cards for participation in projects with grant agreements (such as a diabetes prevention program) that specifically state to consider such payments excluded income for purposes of determining eligibility for any program receiving federal funds, including Medicaid.

l  Radiation Exposure Compensation Act payments. Payments made by the federal government under the Radiation Exposure Compensation Act (Public Law 101-426) to certain individuals (or their survivors) who were exposed to radiation from government nuclear testing and uranium mining.

l Refunds of Security and Utility Deposits. Security deposit refunds and utility deposit refunds whether paid by the applicant or another party, including the Emergency Assistance (EA) or Emergency General Assistance (EGA) programs.

l  Reimbursements for Employment and Training. These include employment and training reimbursements and allowances received from:

n  Local social services programs.

n  Workforce Investment Act (WIA) program.

l Reimbursements for Expenses. Reimbursements for out-of-pocket expenses incurred while performing volunteer services, jury duty or employment.

l  Reimbursements for Medical Expenses.

l  Reimbursements for Property. Payments to replace personal or real property made by public agencies, issued by insurance companies, awarded by a court, or issued through public appeal.

l Ricky Ray Hemophilia Relief Act payments. Settlements to hemophiliacs under the Ricky Ray Hemophilia Relief Act of 1998.

l  Tax Credits, Rebates and Refunds. These include:

n  Earned Income Credit (EIC).

n  Child Tax Credit.

n  Federal Child Care Credit.

n  Minnesota Working Family Credit.

n  Amounts returned to individual taxpayers based on federal or state taxes paid, such as the 1999 sales tax rebate authorized by the Minnesota legislature.

n  Federal and state withholding refunds.

n  Homeowner or Renter Property Tax Refund.

l  Veterans’ Children with Certain Birth Defects payments. Payments made to children of Vietnam or Korean veterans born with spina bifida, or payments made to the children of women Vietnam veterans if they have certain birth defects.

l  Vietnamese Commando Compensation Act payments. Payments by the Secretary of Defense to people captured and interned by North Vietnam.

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