It is assumed that a person does not have sufficient funds to meet ordinary and necessary living expenses if he qualifies for public assistance. Therefore, if a person receives cash public assistance, recovery is deemed to defeat the purpose. If recovery causes a person to qualify for public assistance, recovery defeats the purpose beginning with the month public assistance begins.

As used in this section, public assistance is the use of public funds to support a needy individual or family. It must be in cash or in the form of support in a publicly funded facility. SSI payments, VA service and nonservice related disability pensions and AFDC payments are public assistance. Food stamps, State medical assistance, unemployment benefits and workers' compensation are not public assistance.

When AFDC or SSI payments are made to any member of the household, recovery will defeat the purpose for all members of the AFDC or SSI household. Evidence must show that the person was considered a member of the household for AFDC or SSI purposes.