The amount of ISM that we count as income is the current market value of the food or shelter provided to the individual (and his or her living-with spouse) that is paid for or provided by someone else. If the current market value of the ISM is greater than one-third of the applicable monthly SSI (Supplemental Security Income) Federal benefit rate (FBR), we count only one-third of the applicable monthly SSI FBR as income.

The maximum amount of income we count from ISM per month is limited to one-third of the monthly SSI FBR for an eligible individual that is in effect at the time we determine eligibility for Extra Help. To view the SSI FBR for a particular year, see SI 02001.020C.

The maximum amount of income we count from ISM for an individual and living-with spouse per month is limited to one-third of the monthly SSI FBR, for an eligible couple at the time we are determining eligibility for Extra Help. This amount applies whether one member or both are filing for Extra help. To view the SSI FBR for a particular year, see SI 02001.020C.

Food or shelter or both provided by parents to a child, as defined in SI 00501.010 is not ISM, when the parents and child are members of the same household. However, food or shelter or both provided to the child from any other sources inside and outside the household are countable as ISM and the value is calculated the same as for an adult individual.

Food or shelter or both received during a medical confinement is not ISM. A medical confinement exists when an individual receives inpatient medical services in a medical treatment facility. For a definition of medical services see SI 00815.050B.1.a. and for a definition of medical treatment see SI 00520.011.

This section applies only to members of religious orders who have taken a vow of poverty. Food or shelter or both that is not considered part of a member's wages is ISM. If the food or shelter or both is earned income, it cannot also be considered ISM.

Members of religious orders are required to turn over all money to the order, as fulfillment of the vow of poverty. Because of the vow of poverty, the order has an express obligation to provide food and shelter for the member. When the member lives in a convent, or any facility or living quarters provided by the order, the order provides food and shelter to the member.

Food or shelter or both provided to an individual is countable income (ISM) unless the individual pays for it with his or her own funds. Under the vow of poverty, the member turns over his or her money to the order in fulfillment of the vow and not as a payment for food or shelter or both. Food or shelter or both provided by the order is counted as ISM. (For additional information about income received by members of religious orders see SI 00810.700.)

Follow these instructions for developing and documenting ISM:

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  Ask the individual for the value of ISM received from any source (inside or outside the household);

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  Accept without further development the individual’s allegation of the value of ISM he or she receives;

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  If the individual alleges receipt of ISM, but is unable to provide an estimated amount during the interview, ask the individual to contact the provider or a knowledgeable source to get an estimate;

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  Documents provided by the individual may be used to help figure out the current market value (CMV), but do not routinely request documents and do not copy the documents for the file. Record the documentation in the Medicare Application Processing System (MAPS) per HI 03035.006D.;

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  If the individual (or couple) alleges receipt of food or shelter or both in a month that is worth more than one-third of the applicable SSI FBR, count only one-third of the applicable FBR as ISM per month;

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  If the individual (or couple) alleges receipt of food or shelter or both less than one-third of the applicable FBR, count the alleged current market value as ISM;

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  Input the alleged monthly CMV to the system because the subsidy determination system is programmed to cap the ISM amount at the maximum countable level (See MAPS coding examples 4 and 5 in
  HI 03020.045D.);

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  Accept without further development the individual’s allegation that a roommate’s contribution is for the roommate’s own household expenses, because a contribution by a roommate toward his or her own share of the household expenses does not count as ISM for the individual;

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  If the individual alleges free rent, or a payment for rent, food, or utilities from outside the household, divide the alleged value of the ISM by the number of household members to determine the individual’s share of the ISM. Count the individual’s share of the ISM as unearned income. For a married couple, each member of the couple receives an individual’s share of the household ISM. Count the share of the ISM that each member receives as unearned income, whether one or both members of the couple are filing.

Question 11 on the Medicare Part D application (SSA-1020) contains the statement, “Do not include small amounts of money given occasionally or unexpectedly.” This statement was added to the application so that Extra Help applicants completing the self-help SSA-1020 would not report insignificant amounts of ISM, e.g., a bag of groceries, a restaurant meal, etc.

We always accept the individual’s allegation of the value of ISM. However, if an individual alleges getting ISM but cannot provide any estimate of the dollar value, compute the value of ISM as follows:

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  Calculate the total household expenses for food or shelter or both. Include expenses paid by members of the household and expenses paid by sources outside the household (A list of shelter expenses is in HI 03020.045A.);

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  Divide the total expenses by the number of members of the household to determine the individual’s share of the expenses;

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  If the individual pays less than his or her share of the expenses, the difference between the share of the expenses and the individual’s payment is the CMV of the ISM received by the individual;

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  For a married couple, combine their individual shares of the household expenses and combine their contributions.

Mr. Smith files an Extra Help application and alleges that his adult children pay all of his rent and utilities. His rent is $450 per month and he estimates that his utilities cost about $200 per month. The current market value of the ISM is $650. Since the CMV is higher than one-third of the SSI FBR, cap the countable ISM at one-third of the FBR. The claim representative (CR) inputs the actual value of the ISM ($650) in MAPS. The system will cap the countable amount at one-third of the FBR.

Mr. and Mrs. Jones file an Extra Help application and allege that they get free rent from their son. They allege that the free rent is worth $200 per month. The CR accepts their allegation as the current market value. Because the current market value is less than one-third of the SSI couple FBR, the CR determines that the countable ISM is $200 per month. The CR inputs the actual value of the ISM ($200) in MAPS.

A 15 year old Extra Help applicant, who meets the SSI definition of a child, lives with her parents, and her aunt. The child receives her food from her parents and her aunt. The child’s grandfather, who is not a member of the household, pays the rent for the household. The food provided by the child’s parents is not ISM. The food provided by the child’s aunt and the shelter provided by the child’s grandfather is countable as ISM.

Mr. Wilson files an Extra Help application in December 2007 and he turns 65 in January 2008. He alleges that his brother will pay his heating bill from November 2007 through March 2008. The ISM received in 2007 does not count because January 2008 is Mr. Wilson’s first month of potential eligibility. Mr. Wilson alleges that the heating bill will average about $160 per month for the 3 months (January, February, and March 2008). The claims representative determines that Mr. Wilson will get a total of $480 worth of countable ISM during 2008 (3 months x $160 = $480). The CR divides the $480 by 12 months and determines that Mr. Wilson will receive an average of $40 per month of ISM during 2008. The CR inputs $40 per month as the amount of ISM received. Based on the input of $40, MAPS will determine correctly that Mr. Wilson will receive $480 of ISM in 2008.

Mr. and Mrs. Hollenbrook file an Extra Help application in January 2008 and allege that a relative will pay their heating bill, rent, and food from January through March 2008. The couple alleges that the heating bill will average about $250 per month, the rent is $600 per month, and the groceries will average $400 per month for the 3 months (January, February, and March 2008). The claims representative determines that Mr. and Mrs. Hollenbrook will receive a total of $3750 worth of ISM during 2008 (3 months x $1250 = $3750). However, ISM is capped at one-third of the FBR per month ($318.66 per month in 2008 for a married couple). Therefore, the Hollenbrook’s will receive $955.98 ($318.66 x 3 months) of countable ISM in 2008. The CR divides the $955.98 by 12 months and determines that Mr. and Mrs. Hollenbrook will receive an average of $79.66 per month of ISM during 2008. The CR inputs $79.66 per month as the amount of ISM received. Based on the input of $79.66, MAPS will determine that Mr. Wilson will receive $955.98 of ISM in 2008.