2004 Memorandums
IM-68      07/14/04

The Centers on Medicare and Medicaid Services (CMS) has approved two changes to the budget procedure for Medical Assistance (MA) Vendor cases. First, child support payments may be allowed in determining the personal needs allowance in some cases. Second, Veteran's Administration (VA) reduced pensions are excluded from income in determining the MA vendor surplus.

Child Support

For MA Vendor cases, budget court or administratively ordered child support to increase the personal needs allowance if the conditions below are met. The administrative order must be from a State Child Support Enforcement Agency.

Budget current child support if verification is received that:

  • it is being paid, and
  • it is based on a Court or Administrative order.

Budget child support arrearages if it is verified that:

  • the Court or Child Support Agency has ordered money withheld from income to pay child support arrearages, and
  • the money is being withheld from the income.

VA Reduced Pensions

For MA Vendor cases, exclude reduced VA pensions up to $90.00 from the gross income when determining the surplus. The claimant would be entitled to the $30.00 personal needs allowance.

  • Review this memorandum with all appropriate staff.
  • Begin budgeting Child Support as outlined in this memorandum to determine the personal need allowance.
  • Begin excluding VA reduced payments of up to $90.00 for income on Vendor cases.
  • Begin allowing the $30.00 personal needs allowance on Vendor cases for person receiving an excluded VA reduced pension.