Effective Dates: 2/04/2026 - Present

Identification Number:
HI 03020 TN 39
Intended Audience:See Transmittal Sheet
Originating Office:LP PPDX
Title:Income
Type:POMS Full Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM

Part HI – Health Insurance

Chapter 030 – Eligibility for Subsidized Medicare Prescription Drug Coverage

Subchapter 20 – Income

Transmittal No. 39, 02/04/2026

Audience

PSC: BA, CA, CS, DS, IES, ILPDS, IPDS, ISRA, PETE, RECONR, SCPS, TSA, TST;
OCO-OEIO: BET, CR, CTE, EIE, ERE, FCR, FDE, PETL, RECONE, RECONR;
Subsidy Appeals Unit (SAU): SDR, SDS, SDT;
OCO-ODO: BET, BTE, CCE, CR, CST, CTE, CTE TE, DEC, DES, PAS, PETE, PETL;
FO/TSC: CS, CS TII, CSR, CTE, DRT, FR, OA, OS, RR, TA, TSC-CSR;

Originating Component

ISP

Effective Date

Upon Receipt

Background

Updating POMS to incorporate two emergency messages for Coronavirus Disease 2019 (COVID-19) instructions:

EM-20018 REV 6 (Medicare Part D Low-Income Subsidy (LIS) - Effect of Coronavirus Disease 2019 (COVID-19) Related Assistance); and

EM-22010 REV (Special Processing Instructions - Applying Medicare Part D Extra Help Low-Income Subsidy (LIS) Income and Resource Exclusions to Coronavirus (COVID-19) Related Disaster Assistance.

Summary of Changes

HI 03020.050 Unearned Income Exclusions

Updated caution note to remove aged Katrina instructions and insert COVID-19 instructions.

Section A

- Updated title from "Unearned income inquiry" to "Background".

Section B

- Moved language regarding unused $20 per month general income exclusion from B.1 to B.2.

- Inserted hyperlinks to policies regarding SSI unearned income exclusions and LIS resource exclusions.

Section C

- Removed aged policy regarding American Recovery and Reinvestment Act of 2009

- Inserted summary of COVID policy and hyperlinks to SSI COVID policy.

Section D

- Removed aged policy regarding the Economic Stimulus Act of 2008.

- Inserted summary of income exclusion policy for Federal Tax Refunds and Advance Tax Credits.

Section E

- Removed aged reference to policy regarding Katrina.

- Inserted hyperlink to disaster assistance policy.

Section F

- Updated hyperlinks

HI 03020.050 Unearned Income Exclusions

 

 
here
 Coronavirus Disease 2019 (COVID-19) instructions are available here.

A. Background

We must ask about the source and amount of all of the applicant’s unearned income, however; we do not count all of the unearned income to determine eligibility for the Part D subsidy.

B. Unearned income exclusions

1. General rules

  • •

    For purposes of determining countable income for the subsidy, the unearned income exclusions that apply to the SSI program also apply to Part D subsidy eligibility determinations.

  • •

    Exclusions do not reduce unearned income below zero.

For more information about SSI unearned income exclusions see, SI 00830.099 Guide to Unearned Income Exclusions.

For information about resource exclusions for Part D subsidy, see HI 03030.020 Resource Exclusions.

2. Exceptions to the general rules

  • •

    We do not approve the Plan for Achieving Self-Support (PASS) to exclude income and resources to enable an individual to qualify for the subsidy.

  • •

    All interest and dividends, regardless of the source, are excluded from income to determine eligibility for the subsidy.

  • •

    The $20 per month general income exclusion applies to all unearned income including income based on need (IBON).

    NOTE:Except for any unused portion of the $20 per month general income exclusion, unused unearned income exclusions are not applied to earned income.

C. Income exclusions for Coronavirus Disease 2019 (COVID-19)

On March 13, 2020, the COVID-19 pandemic was declared sufficient to warrant an emergency declaration for states, tribes, territories, and the District of Columbia.

On March 27, 2020, the "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act), Public Law 116-136, was signed into law. The CARES Act provided for several types of assistance due to COVID-19.

On December 27, 2020, the "Consolidated Appropriations Act, 2021" (CAA), Public Law 116-260, was signed into law. The CAA provided extensions and additional funding to several of these pandemic assistance programs and authorized several new programs.

On March 11, 2021, the “American Rescue Plan Act of 2021” (ARPA), Public law 117-2, was signed into law. The ARPA also provided extensions and additional funding to several of these pandemic assistance programs and authorized several new programs.

Effective May 11, 2023, the declared disaster ended.

To identify and develop COVID-19 pandemic-related income exclusions see charts in SI 00830.622. For the treatment of COVID-19 pandemic-related assistance for income see SI 00830.623.

For help with alleged COVID-19 pandemic-related disaster assistance not classified as disaster assistance in either of the charts in SI 00830.622, contact your Regional Office.

To document COVID-19 pandemic-related assistance in the Medicare Application Processing System (MAPS) follow normal instructions in HI 03035.006.

D. Income exclusions for Federal Tax Refunds and Advance Tax Credits

On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 (ATRA). The law excludes from income all federal tax refunds and advance tax credits received on or after January 1, 2010. The following SSI federal tax refunds and advance tax credits income exclusions are also applicable for purposes of making Part D subsidy eligibility determinations:

  • •

    All federal refundable and advance tax credits,

  • •

    Earned income tax credit (EITC),

  • •

    Child tax credit (CTC),

  • •

    Making Work Pay (MWP) tax credit,

  • •

    First-time homebuyer tax credit,

  • •

    Deemed first-time homebuyer tax credit.

For more information about the treatment of federal tax refunds and advance tax credits for SSI income purposes see, SI 00830.060.

E. Income exclusions for victims of presidentially declared disasters

The SSI income exclusions applicable to victims of other presidentially declared disasters are also applicable for purposes of making Part D subsidy eligibility determinations.

For more information about disaster assistance see SI 00830.620.

F. References

  • •

    HI 03020.030 Earned Income Exclusions

  • •

    HI 03030.020 Resource Exclusions

  • •

    SI 00810.007 Income Exclusions

  • •

    SI 00810.420 $20 Per Month General Income Exclusion

  • •

    SI 00830.050 Overview of Unearned Income Exclusions

  • •

    SI 00830.099 Guide to Unearned Income Exclusions

  • •

    SI 00830.060 Federal Tax Refunds and Advance Tax Credits for SSI Income Purposes

  • •

    SI 00830.620 Disaster Assistance - Presidentially - Declared Disaster

  • •

    SI 00830.622 Effect of COVID-19 Pandemic-Related Assistance on SSI Income and Resources

  • •

    SI 00810.623 Developing and Documenting Income Exclusions from Pandemic-Related Assistance


HI 03020 TN 39 - Income - 2/04/2026