TN 15 (08-09)

HI 03020.035 What is Unearned Income

A. Definition of unearned income for Medicare Part D Extra Help (subsidy)

Unearned income is all income that is not earned income.

B. Policy for counting unearned income for Medicare Part D Extra Help

For purposes of determining eligibility for the Extra Help, the rules for what is considered unearned income are similar to those used in the Supplemental Security Income (SSI) program. To determine whether an item is considered income, follow the instructions in SI 00830.001 through SI 00830.880.

We also count in-kind support and maintenance (ISM) as unearned income. ISM is any food or shelter or both that is given to the individual or living-with spouse, or is received because someone else pays for it. For purposes of determining eligibility for Extra Help, ISM is not determined under the same rules as for the SSI program. See HI 03020.045 for the instructions for determining the value of ISM for Extra Help purposes.

NOTE: Under Public Law (P.L.) 110-275 (The Medicare Improvements for Patients and Providers Act (MIPPA) of 2008), ISM will not be counted as income for Medicare Part D Extra Help applications. The changes in counting ISM as income because of MIPPA are effective for: applications effectively filed on or after January 1, 2010; and initial determinations that do not become effective before January 1, 2010. An example of an initial determination that becomes effective on or after January 1, 2010 is a periodic or cyclical redetermination initiated in August 2009.

C. References

SI 00810.700 - Income of Member of Religious Orders - General

SI 00830.001 - General Information on Unearned Income

HI 03020.045 - In-Kind Support and Maintenance


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0603020035
HI 03020.035 - What is Unearned Income - 08/07/2009
Batch run: 07/08/2013
Rev:08/07/2009