The SSI rules for counting income differ depending on whether the income is earned or unearned.
Earned income is salary or wages or self-employment income.
Everything else is unearned income. Unearned income includes Social Security benefits and other pensions. There are no further unearned income deductions. Medically Needy Medi-Cal with a share of cost if they meet the SSI disability standard. The state is using a modified Medically Needy methodology.