Income Exclusions and Disregards
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Income Exclusions and Disregards


Revised March 3, 2014


Long-term care


Purpose:

WAC 182-513-1340Determining excluded income for long-term care (LTC)
WAC 182-513-1345Determining disregarded income for institutional or hospice services under the medically needy (MN) program

WAC 182-513-1340

WAC 182-513-1340

Effective January 1, 2014

WAC 182-513-1340 Determining excluded income for long-term care (LTC)

Emergency WAC effective 1-1-2014

This section describes income the department excludes when determining a client's eligibility and participation in the cost of care for LTC services with the exception described in subsections (31)  of this section.  

  1. Crime victim’s compensation;
  2. Earned income tax credit (EITC) for twelve months after the month of receipt;
  3. Native American benefits excluded by federal statute (refer to WAC 182-512-0700;
  4. Tax rebates or special payments excluded by other statutes;
  5. Any public agency’s refund of taxes paid on real property and/or on food;
  6. Supplemental Security Income (SSI) and certain state public assistance based on financial need;
  7. The amount a representative payee charges to provide services when the services are a requirement for the client to receive the income;
  8. The amount of expenses necessary for a client to receive compensation, e.g., legal fees necessary to obtain settlement funds;
  9. Education benefits described in WAC 182-509-0335;
  10. Child support payments received from an absent parent for a child living in the home are considered the income of the child;
  11. Self-employment income allowed as a deduction by the Internal Revenue Service (IRS)
  12. Payments to prevent fuel cut-offs and to promote energy efficiency excluded by federal statute;
  13. Assistance (other than wages or salary) received under the Older Americans Act;
  14. Assistance (other than wages or salary) received under the foster grandparent program;
  15. Certain cash payments a client receives from a governmental or nongovernmental medical or social service agency to pay for medical or social services;
  16. Interest earned on excluded burial funds and any appreciation in the value of an excluded burial arrangement that are left to accumulate and become part of the separately identified burial funds set aside;
  17. Tax exempt payments received by Alaska natives under the Alaska Native Settlement Act established by P.L. 100-241;
  18. Compensation provided to volunteers in ACTION programs under the Domestic Volunteer Service Act of 1973 established by P.L. 93-113;
  19. Payments made from the Agent Orange Settlement Fund or any other funds to settle Agent Orange liability claims established by P.L. 101-201;
  20. Payments made under section six of the Radiation Exposure Compensation Act established by P.L. 101-426;
  21. Payments made under the Energy Employee Occupational Compensation Program Act of 2000, (EEOICPA) Pub. L. 106-398;
  22. Restitution payment, and interest earned on such payment to a civilian of Japanese or Aleut ancestry established by P.L. 100-383;
  23. Payments made under sections 500 through 506 of the Austrian General Social Insurance Act;
  24. Payments from Susan Walker v. Bayer Corporation, et. al., 95-C-5024 (N.D. Ill.) (May 8, 1997) settlement funds;
  25. Payments ma de from the Ricky Ray Hemophilia Relief Fund Act of 1998 established P.L. 105-369;
  26. Payments made under the Disaster Relief and Emergency Assistance Act established by P.L. 100-387;
  27. Payments made under the Netherlands’ Act on Benefits for Victims of Persecution (WUV);
  28. Payments made to certain survivors of the Holocaust under the Federal Republic of Germany’s Law for Compensation of National Socialist Persecution or German Restitution Act;
  29. Interest or dividends received by the client is excluded as income.  Interest or dividends received by the community spouse of an institutional individual is counted as income of the community spouse.  Dividends and interest are returns on capital investments such as stocks, bond, or savings accounts.  Institutional status is defined in WAC 182-513-1320;  
  30. Income received by ineligible or nonapplying spouse from a governmental agency for services provided to an eligible client, e.g., chore services;
  31. Department of Veterans Affairs benefits designated for:
    1. The veteran’s dependent when determining LTC eligibility for the veteran. The VA dependent allowance is considered countable income to the dependent unless it is paid due to unusual medical expenses (UME);
    2. Unusual medical expenses, aid and attendance allowance, special monthly compensation (SMC) and housebound allowance, with the exception described in subsection (32) of this section;

This is a reprint of the official rule as published by the Office of the Code Reviser. If there are previous versions of this rule, they can be found using the Legislative Search page.

WAC 182-513-1345

WAC 182-513-1345

Effective January 1, 2013

WAC 182-513-1345 Determining disregarded income for institutional or hospice services under the medically needy (MN) program

Emergency WAC effective 10-1-2013

This section describes income the department disregards when determining a client’s eligibility for institutional or hospice services under the MN program. The department considers disregarded available when determining a client’s participation in the cost of care.   

  1. The department disregards the following income amounts in the following order:
    1. Income that is not reasonably anticipated, or is received infrequently or irregularly, when such income does not exceed:
      1. Twenty dollars per month if unearned; or
      2. Ten dollars per month if earned.
    2.   The first twenty dollars per month of earned or unearned income, unless the income paid to a client is:
      1.      Based on need; and
      2.     Totally or partially funded by the federal government or a private agency;
  2. For a client who is related to the Supplemental Security Income (SSI) program as described in WAC 182-512-0050 (1),the first sixty-five dollars per month of earned income not excluded under WAC 182-513-1340, plus one-half of the remainder.
  3. Department of Veterans Affairs benefits designated for:
    1. The veteran's dependent when determining LTC eligibility for the veteran. The VA dependent allowance is considered countable income to the dependent unless it is paid due to unusual medical expenses (UME);
    2. Unusual medical expenses, aid and attendance allowance, special monthly compensation (SMC) and housebound allowance, with the exception described in subsection (4) of this section.
  4. Benefits described in subsection (3)(b) of this section for a client who receives long-term care services are excluded when determining eligibility, but are considered available as a third-party resource (TPR) when determining the amount the client contributes in the cost of care.
  5. Income the Social Security Administration withholds from SSA Title II benefits for the recovery of an SSI overpayment.

This is a reprint of the official rule as published by the Office of the Code Reviser. If there are previous versions of this rule, they can be found using the Legislative Search page.

CLARIFYING INFORMATION

Income That Is Counted

  1. Income that remains after exclusions and disregards provided by specific program rules must be counted when determining eligibility and participation  in the cost of care for long-term care (LTC) services. Such income is considered "countable" income.

  2. Income described in WAC 182-513-1340  is excluded when determining both eligibility and participation in the cost of care. These exclusions apply to both the categorically needy (CN) and medically needy (MN) programs. Specific federal statutes provide that each type of income listed be excluded when determining a client's countable income.

  3. Income described in WAC 182-513-1345  is disregarded when determining eligibility for MN programs. Disregarded income must be counted when determining eligibility for CN programs and when determining a client's participation in the cost of care.

  4. Refer to WAC 182-515-1510  for earned income deductions provided under DDA Waivers.

  5. Refer to WAC 182-515-1505 for earned income deductions provided under HCS CN Waivers.


ACES PROCEDURES

See Long Term Care, Alternate Care and Waivered Services - Income
Modification Date: March 3, 2014