Selected Sections of The Florida Public Assistance Manual. Here you will find the Department of Children and Families guide to the Florida laws on Medicaid and how they affect eligibilty for public benefits to pay for the costs of long term care. We have broken the selected sections into three part for ease in navigation. Those parts are: Sections 1600 to 1630 Sections 1630 to 1845 Sections 1845 to 1875 1845.15.40 Earned Income Credit (FS,AFDC,MA-AFDC,RAP,CIC,MA-SSI)   (08/01/91) Payments from federal income taxes for earned income tax credit (EIC) are excluded as income in the determination of eligibility, including the 185% test. For treatment as an asset, refer to 1625.96.10.   1850.00.00 DIVIDENDS AND INTEREST   This section provides policy on the following topics:   á dividends and interest, á notes, mortgages, insurance, annuities; and á royalties.   Sections 1850.05-05 and 1850.05.30 discuss dividends and interest received through investments.   1850.05.10 Dividends and Interest (MA-SSI,SFP)   Dividends and interest income count as unearned income unless they are excluded as infrequent/irregular income, as disaster assistance, or as replacement of excluded assets. They are included at the time they become available to the individual on demand (that is, recorded on the account), regardless of whether they have been recorded in a passbook or a bank statement.   For MA-SSI and SFP only, dividends on life insurance policies are excluded as income.   1850.05.10.O5 Dividends and Interest on Burial Funds (MA-SSI,SFP)   Any appreciation in the value of assets designated as burial funds excluded as an asset, is also excluded as income. Similarly, any interest paid on excluded burial accounts that is left to accumulate in the account is also excluded from income. All interest and dividends left to accrue on the designated burial fund, regardless of the asset amount designated for burial, are excluded. However, any interest or dividends which are paid directly to the individual and which are set aside for burial purposes are included as unearned income, unless otherwise excluded.   1850.05.10.10 Interest on Retirement Funds (MA-SSI,SFP)   (01/01/96) If the interest earned on retirement funds can be accessed, it is countable unearned income to the individual. If the interest earned on retirement funds cannot be accessed, it becomes part of the fund principal and an excluded resource.   Refer to 1625.05.15.10 and 1630.20.10.04 for additional policy regarding retirement funds.   1850-05-15 Savings Bonds (MA-SSI,SFP)   Interest on some bonds (for example, Series E) is not income because the interest is not available until the bond is redeemed. On other bonds, interest is paid periodically while the bond rerftains owned.     Example: Series H bond interest is paid semi-annually with the first payment date six months from the date of issuance. The interest on these bonds is included as unearned income.   1850.05.20 Stock Dividends (MA-SSI,SFP)   If a stock dividend is in the form of additional shares of stock, then the value of the additional shares is included as unearned income.   1850.10.00 NOTES, MORTGAGES, INSURANCE, AND ANNUITIES   Sections 1850.10.05 through 1850.10.10 discuss income received from promissory notes, mortgages, insurance, and annuities.   1850.10.10 Promissory Note/Mortgages (MA-SSI,SFP)   If the promissory note/mortgage is included as an asset, the interest portion of a payment is included as interest income. If the mortgage is excluded as an asset, both the interest and principal portions of the payment are counted as unearned income.   1850.10.11 Annuities And Other Retirement Funds (MA-SSI,SFP)   (01/01/96) Refer to 1625.05.15.10 for retirement fund policy; 1630.20.10.04 for transfers to retirement funds; and 1850.05.10.10 for how to consider interest earned on funds.   1850.10.15 Home Equity Conversion Plans (MA-SSI.SFP)   (08-01-92) Home Equity Conversion Plans (HEC) are designed to allow elderly homeowners to convert the value of their homes into cash without being forced to leave their homes. Under these plans, the home is either mortgaged or sold to a financial institution (or an individual) in exchange for a regular cash payment or line of credit which the homeowner receives as long as he/she lives in the home. Following is a list of possible HEC arrangements: Reverse Mortgages, sale-leaseback, time sale, deferred payment loans, and property tax deferrals.   Some of these HEC arrangements allow for the purchase of annuities and pay interest.   Generally, the proceeds from one of these arrangements are considered loans and are not considered as income to the client. However, if the proceeds are retained into the following month, they must be evaluated as an asset. Annuity payments and interest payments are unearned income and must be evaluated as such.   1850.15.00 ROYALTIES (MA-SSI,SFP)   Royalties are payments to the holder of a patent or copyright, to the owner of a mine, for the duplication of a writing, for the use of an invention, for the extraction of a product, and similar items. If the royalties are earned from a royalty-related trade or business they are included as earned income.   The amount withheld for income taxes is included in the amount considered income. A production or severance tax, as with most royalties, is deductible from the gross amount of the royalty.           1855.00.00 REIMBURSEMENTS   (11-01-92) Reimbursements for past or future expenses are excluded if they do not exceed actual expenses and do not represent a gain or benefit. To be excluded, these payments must be specifically intended and used for expenses other than normal living expenses.   Any part of the reimbursement amount that exceeds the actual expense is included as income. However, reimbursements are not considered to exceed actual expenses, unless the amount is excessive.   Reimbursements for normal household living expenses such as rent or mortgage, personal clothing, or food eaten at home are a gain or benefit and, therefore, are included as income.   The following types of reimbursement are excluded as income:   á reimbursement from the Uniform Relocation Assistance and Real Property Acquisition Policy Act;   á reimbursements or flat allowances from the employer that are over and above the basic wages and used for job related expenses such as travel, per diem, uniforms, and transportation to and from the job training site,   á reimbursements for out-of-pocket expenses incurred by volunteers in the course of their work;   á medical reimbursements from Worker's Compensation benefits specifically designated for medical expenses; and   á reimbursements by PI or employment and training programs.     1855.15.00 WORK-RELATED UNEARNED INCOME (MA-SSI,SFP)   Work-related unearned income is any reimbursement for services rendered that is not considered to be wages. When reimbursements are not considered wages they are included as unearned income.   Examples include:   á monies paid to an inmate of a public institution where no employer- employee relationship exists;   á jury fees; and   á active duty military personnel clothing allowances, quarters (housing allowances), and food rations.   1855.15.05 Non-Governmental Medical or Social Services (MA-SSI,SFP)   Cash provided by any non-governmental medical or social services program as reimbursement for services purchased by the individual, or as payment restricted to the future purchase of a service, when the service is approved by the services program, is excluded as income.     1860.00.00 STUDENT LOANS, GRANTS, AND SCHOLARSHIPS   (07-01-95) (7CFR 273.9; 45CFR 233.20; 1OC-1.201; 1OC-1.512; 409.185, F.S.) Treatment of educational loans such as grants, scholarships, fellowships and veterans' educational benefits, as well as any scholarship, grant or loan to a student for educational purposes differs by program; therefore, refer to sections 1860.05.00 through 1860.10.00 for the explanation of appropriate exclusions, by program, for this income. These sources generally apply to students attending a college or other institution of higher education beyond the high school level.   1860.10.00 GRANTS, SCHOLARSHIPS, OR FELLOWSHIPS (MA-SSI,SFP)   Not all educational monies are received as grants, scholarships, or fellowships; therefore, these sources of income are included:   .tuition and subsistence allowances to members of the Armed Forces of the U.S. who are students at an educational institution operated by the U.S., such as the U.S. Naval Academy and the U.S. Military Academy;   .retainer payments and subsistence allowances to students under the Reserve Officer's Training Corps (ROTC);   .any amount paid or allowed an individual for pursuit of studies or research when the amount represents payments for services subject to the direction or supervision of the grantor or used primarily for the benefit of the grantor; and   .grants-in-aid with a work requirement, including all work-study programs and any grants requiring performance of work before, during, or after pursuit of study or research.   1860.15.00 VERIFICATION OF EDUCATIONAL INCOME   (02-01-92) All student income from educational grants, scholarships, and loans must be verified and documented. Case record documentation must include the name of the educational institution and the amounts of any grants, scholarships and loans.   The case manager may obtain this information by phoning the school or loan office or the grantor of the educational income. If the phone is used, the case manager must record the name, position, and phone number of the person providing the information.   A written agreement with the lending institution or grantor of the educational income that contains the necessary dates and that is signed by the individual will also serve as documentation.         1865.00.00 PERSONAL LOANS, GIFTS, AND CONTRIBUTIONS   The following section provides policy on personal loans, gifts, and contributions.   Section 1865.05.00 discusses policy regarding personal loans, Section 1865.10.00 deals with gifts, and Section 1865.15.00 discusses contributions.   1865.05.00 PERSONAL LOANS   Personal loans include all loans with intent to repay, including loans from private individuals as well as commercial institutions. Refer to Section 1860 for treatment of educational loans.   1865.05.15 Personal Loans (MA-SSI,SFP)   (04/01/95) The following is policy for determining if proceeds from a personal loan are income to the borrower or to the lender.   When an individual is the BORROWER:   áProceeds of a loan received by the borrower are not income if the borrower has an obligation to repay. If the loan is determined not to be bona fide, it is considered income in the month received.   Refer to Section 1625.70.15.05 for information on determining whether a loan is bona fide or not.   áThe amount remaining from the loan in the month following receipt is considered as an resource to the borrower.   When an individual is the LENDER:   áIf the loan is determined to be a bona fide loan and is a countable resource, only the interest portion of the payment received is income to the lender.   Refer to Section 1625.70.15.05 for information on determining whether a loan is bona fide or not.   áIf the principal due on the loan is not a countable resource, the entire payment received (principal and interest) is counted as income.   NOTE: The loan is not a countable resource if the legal title of the loan cannot be transferred from the individual to someone else (it is not negotiable) or if the loan is being excluded as income-producing property.   .If the loan is determined not to be bona fide, the entire portion of the loan payment received is income to the lender.   1865.10.00 GIFTS   Sections 1865.10.05 through 1865.10.15 provide policy on the receipt of gifts.   1865.10.10 Gifts (MA-SSI,SFP)   A gift may be excluded if it is infrequent or irregular. To be a gift, an item must meet the following requirements:   - must be given irrevocably;   - must not be compensation or return for services or other consideration; and   - must be given without legal obligation on the part of the donor.   1865.10.15 Prizes and Awards (MA-SSI,SFP)   Cash prizes and cash awards are included as income unless they can be excluded as infrequent or irregular.   A prize is generally something won in a contest, lottery, or game of chance. Prizes are most often in the form other than cash (for example, a vacation trip or a household appliance).   Award is generally something of value received as a result of a decisionor judgment of a court, board of arbitration, or similar action. Awards are almost always cash or its equivalent.   If a prize or award is not substantial, then the case manager must consider whether it may be excluded from income as infrequent/irregular income.   1865.15.00 CONTRIBUTIONS (FS,AFDC,RAP,CIC,MA-AFDC,MA-SSI,SFP)   All directmoney payments from any source that represent gain or benefit tothe individual are included as unearned income.   1865.15.10 Contributions to a Facility (MA-SSI,SFP)   (05-01-93) If there is a general, signed contribution statement on file with HRS, the voluntary general contributions are excluded from the eligibility determination budget and do not affect Medicaid payment. If there is not a current, signed contribution notice on file, the contributions are third party payments and must be refunded by the facility to Medicaid Third Party Recovery.   For ICP, the Office of Medicaid is responsible for the Administrative Code and policy pertaining to voluntary general contributions received by a nursing home. The case manager must question the individual or authorized representative about the presence of contributions.   For OSS, contributions made to the facility on behalf of the client are not considered as income as long as the payment is made directly to the facility and does not exceed two times the recognized cost of care.   Note: Social Security does consider contributions as income (in-kind support and maintenance) to determine the amount of an SSI payment. If an OSS applicant/recipient's SSI is decreased, rejected or terminated because of contributions to the facility, the OSS payment cannot be increased to offset the SSI reduction.   1870.00.00 TRUST FUNDS   Sections 1870.05.00 through 1870.10.00 provide policy pertaining to trust funds.   1870.10.00 TRUSTS (AFDC,RAP,CIC,MA-AFDC,MA-SSI)   (01-01-94) A trust is a right of property held by one party for the benefit of another. The person for whose benefit the trust is created is the beneficiary. If the beneficiary has a right to the income from the principal of the trust, then it is counted as unearned income as it becomes available. if the beneficiary has no right to the income from the principal of the trust and the income is added to the principal, then the earnings from the principal are not considered income.   Refer to passages 1625.85.10.02 - 1625.85.10.03 for specific information regarding availability of trusts for AFDC and MA-AFDC.   1875.00.00 SHARING SITUATIONS (FS,AFDC,MA-AFDC,CIC,MA-SSI,SFP)   (04-01-96) Monies provided to meet a portion of mutual living expenses from a person sharing living arrangements with the assistance group are to be excluded.   (FS: 7 CFR 273.9; AFDC: 45 CFR 233.20; SSI-MA/SFP: POMS 00835.160)

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