TN 31 (10-23)

HI 03020.001 What Is Income


20 CFR 418.3101 - 418.334

A. Income counting for Medicare Part D Extra Help (subsidy)

To be eligible for Medicare Part D Extra Help (also known as low income subsidy) prescription drug program, an individual must have income below the limits established by the Medicare Modernization Act (MMA). The following sections describe what is considered income and explain how it is counted for purposes of determining eligibility for Medicare Part D Extra Help.

B. Definition of income for Medicare Part D Medicare Extra Help

Income is anything an individual receives in cash or in kind that can be used to meet their needs for food or shelter. In-kind income is not cash, but is actually food or shelter, or something that can be used to get one of these. Income can be earned income or unearned income. In-kind support and maintenance (ISM) is countable as income for Extra Help applications effectively filed December 31, 2009, or earlier.

NOTE: Public Law 110-275 (The Medicare Improvements for Patients and Providers Act of 2008) changes the rules for counting in-kind support and maintenance (ISM) as income for Medicare Part D Extra Help applications. ISM will not be counted as income 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. Policy for what is income

For purposes of determining eligibility for Extra Help, the rules for what is considered income are similar to those used in the Supplemental Security Income (SSI) program.

To determine whether an item is considered as income, follow the instructions in SI 00810.001 through SI 00810.130 and HI 03020.005.

D. Policy for the relationship of income to resources

Cash or in-kind items received in a month are counted as income for that month. If held by the individual until the following month, cash and in-kind items are subject to resource counting rules.

E. References

SI 00810.001 What is Income

SI 00810.010 Relationship of Income to Resources

SI 00810.700 Income of Member of Religious Orders - General

HI 03030.001 What are Resources

HI 03020.055 Income Limits for Subsidy Eligibility

HI 03030.025 Resource Limits for Subsidy Eligibility

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HI 03020.001 - What Is Income - 10/24/2023
Batch run: 10/24/2023