Code of Vermont Rules › Agency 13 - AGENCY OF HUMAN SERVICES › Sub-Agency 170 - DEPARTMENT FOR CHILDREN AND FAMILIES (DCF) › Chapter 530 - VERMONT HEALTH ACCESS PLAN (VHAP) (5300) › Section 13 170 530 - VERMONT HEALTH ACCESS PLAN (VHAP) (5300)

Current through June, 2024
Section 5321 Income
(05/01/2010, 10-02)
Countable income is all earned and unearned income, as
				  defined in this section, less all allowed deductions.
Income in the month of application (or review) and future
				  months is estimated based on income in the calendar month prior to the month of
				  application (or review) unless changes have occurred or are expected to occur
				  and this income does not accurately reflect ongoing income. If changes are
				  expected to occur, an estimate of income based on current information should be
				  used.
To determine countable monthly income, average weekly income
				  is multiplied by 4.3 and average bi-weekly income is multiplied by 2.15.
A. Lump Sum Receipts
Lump sum benefits that would have been counted as income if
				  received on time, such as social security benefits and unemployment
				  compensation, shall be added to all other countable income of an applicant for
				  or recipient of VHAP and counted only in the month of receipt.
Windfall lump sums such as insurance payments and money
				  received from the sale of a resource (including the sale of an excluded
				  resource) are not counted.
An insurance payment or similar third party payment that is
				  received for a specific purpose, such as the payment of medical bills or
				  funeral costs, and is used for the stated purpose is excluded. Payments not
				  used for the stated purpose are counted as income in the month received.
B. Unearned Income
Unearned income includes, but is not limited to, the
				  following:
Income from pension and benefit programs, such as social
				  security, railroad retirement, veteran's pension or compensation, unemployment
				  compensation, and employer or individual private pension plans or
				  annuities.
Interest and dividends.
Child support payments (see 4001.82 #23 for the exclusion of
				  the first $ 50) and alimony payments.
Income from capital investments in which the individual is
				  not actively engaged in managerial effort.
Time payments on mortgages or notes resulting from a casual
				  sale (i.e., a sale not related to self-employment) of real (stationary or
				  fixed) property or personal property.
Voluntary contributions from others.
Unearned income does not include the following:
Infrequent or irregular voluntary cash contributions or
				  gifts, such as Christmas, birthday, or graduation presents, received from
				  friends or relatives.
In-kind income.
Five percent of a VA monthly award that is retained by a
				  guardian.
C. Earned Income
Earned income includes all wages, salary, commissions or
				  profit from activities in which the individual is engaged as an employee or a
				  self-employed person, including, but not limited to, active management of
				  capital investments (e.g., rental property).
Earned income is defined as income prior to any deductions
				  for income taxes, FICA, insurance or any other deductions voluntary or
				  involuntary except that, in determining earned income for self-employed
				  individuals, business expenses are deducted first.
Earnings over a period of time, for which settlement is made
				  at one given time, are also included (e.g., sale of farm crops, livestock,
				  poultry). Monthly income is determined by dividing the settlement by the number
				  of months in which it was earned.
Earned income does not include in-kind income.
The following items are deducted from gross earned income in
				  the sequence listed:
- Business expenses (self-employment only)
- Standard employment expense deduction
- Dependent care expenses
D. Business Expenses
Business expenses, which are deducted from gross receipts to
				  determine adjusted gross earned income, are limited to operating costs
				  necessary to produce cash receipts, such as:
1. Office or shop rental; taxes on farm or
				business property;
2. Hired
				help;
3. Interest on business
				loans;
4. Cost of materials, stock,
				and inventory, livestock for resale required for the production of this income;
				and
Tax returns and business records are considered appropriate
				  sources of accurate figures for farm and business receipts and expenses.
The income of a VHAP group owning or operating a commercial
				  boarding house shall be treated as any other business income. A commercial
				  boarding house is defined as an establishment licensed as a commercial
				  enterprise that offers meals and lodging for compensation. In areas without
				  licensing requirements, a commercial boarding house shall be defined as a
				  commercial establishment that offers meals and lodging with the intention of
				  making a profit.
No computation is required for foster homes furnishing
				  boarding care to children in custody of, and placed by, the Family Services
				  Division (FSD). Department board rates are established to cover expenses only,
				  with no profit available; therefore, no earned income is considered available
				  from this source.
For a VHAP group that is not a commercial boarding house, the
				  business expense of furnishing room and board, alone or as part of custodial
				  care, shall be allowed, provided that the amount shall not exceed the payment
				  the VHAP group receives from the roomer/boarder for lodging/ meals. (See the
				  Medicaid Procedures Manual at P-2420 D2 for the table of standard business
				  expense deductions for homes providing room or board on a non- commercial
				  basis.)
E.
				Standard Employment Expense Deduction
The standard employment expense deduction is the first $
				  90.00 earned per month after deduction of business expenses, where
				  applicable.
The standard employment expense deduction is applied
				  separately to the gross countable earned income of each individual in the VHAP
				  group who is employed or self-employed.
F. Dependent Care Expenses
Dependent care expenses necessary to enable the individual to
				  retain his or her employment or accept employment will be deducted up to a
				  maximum of $ 175.00 per month for the care of each member of the VHAP group who
				  is an incapacitated adult or a child age two years or older, and up to a
				  maximum of $ 200 per month for the care of each child under two years of age
				  who is a member of the VHAP group.
Dependent care expenses for the care of a child are not
				  deducted unless the child requiring care is a member of the VHAP group or is
				  not a member of the VHAP group solely because he/ she is an SSI/AABD or an ANFC
				  recipient and is:
1. under age 13;
				or
2. at least age 13 but younger
				than age 21 and physically or mentally incapable of caring for himself or
				herself, as verified by the written report of a physician or licensed
				psychologist; or
3. at least age 13
				but younger than age 21 and under court supervision.
Dependent care expenses will be allowed as paid up to the
				  maximum. If a recipient's dependent care expenses are below the maximum,
				  transportation to and from the dependent care facility may be deducted as part
				  of the expense up to the maximum for both dependent care and
				  transportation.
Payments for dependent care provided by a member of the same
				  VHAP group, by the child's parent (biological, adoptive, or stepparent) or
				  legal guardian, or the incapacitated adult's spouse do not qualify as necessary
				  dependent care expenses under this policy.
The provider of care must be at least 16 years of age. A
				  deduction for dependent care expenses for care of a child can be allowed only
				  when neither parent is available and able to provide the necessary care. A
				  deduction for dependent care expenses for care of an incapacitated adult can
				  only be allowed when the incapacitated adult's spouse (where applicable) is
				  either unavailable, or available but unable to provide the necessary care
				  because he/she is incapacitated. Incapacity shall be determined in accordance
				  with the process used to determine whether a parent applying for or receiving
				  ANFC is incapacitated (see WAM 2332.1). This process shall give appropriate
				  consideration to the treating physician's opinion. A spouse is considered
				  unavailable if he/she is employed during the time care is required.
If dependent care is required for reasons other than
				  employment (e.g., protective services child care or care for training
				  purposes), the client shall be referred to SRS.