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FMAP Financial Eligibility - Income Considered - Iowa

All unearned and earned income is considered when determining initial and continuing FMAP-related Medicaid eligibility except when the income is specifically:

·           Exempted

·           Disregarded

·           Deducted

·           Diverted

NOTE: See the Iowa Dept of Human Services Employees' Manual, Title 8, Medicaid, Chapter 6, Income, Types of FMAP-related Income. This is an alphabetical list of types of income and whether each is exempt, disregarded or deducted. The chapter also spells out the rules for whose income should be included and excluded, and when income can be excluded because it is considered to be "diverted" to someone not in the eligible group.)

Note, in particular, that the first four months of an individual’s earnings may be exempt under the Work Transition Period (WTP) policy.

Unearned income is any income in cash that is not gained by labor or service. Examples of unearned income are:

·           Investment income, such as dividends from stocks or bonds.

·           Alimony or child support.

·           Nonrecurring lump-sum payments.

·           Rent from property handled by an agent.

·           Interest income.

·           Worker’s compensation.

·           Extended disability payments paid by an insurance company.

·           Benefits or rewards for service, or compensation for lack of employment, such as Social Security benefits, Railroad Retirement, VA pensions, unemployment insurance, and strike pay.

Earned income is income earned by the person’s own efforts. Examples of earned income are:

·           The total gross amount of salary, wages, tips, bonuses, or commissions earned as an employee, including vacation and sick-leave pay, regardless of any employment-related expenses.

·           Net profit from self-employment.

·           Income from Job Corps.

Earned income includes income from managerial responsibilities, such as the management of capital investments in real estate. However, in a capital investment where the owner carries no responsibility (such as where rental properties are in the hands of rental agencies and the check is forwarded to the owner), the income is classified as unearned income.

See Also:

·           Family Medical Assistance Program (FMAP) Overview

·           Overview of Medical Assistance in Iowa

·           Welcome and Introduction to Benefits in Iowa

Source: Iowa Dept of Human Services Employees’ Manual

Title 8 Medicaid

·                        Chapter E, Income, Types of FMAP-Related Income

Legal reference: 441 IAC 75.57(249A)

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