Kansas Family Medical Assistance
Manual (KFMAM)
Eligibility Policy - 11/22/2024
05000 >>> 05220
05200
05220 Countable Unearned Income - The following sections outline the types of countable unearned income.
5220.01 Annuities Income - Payments from an Annuity are countable if they are taxable. Verification is required. If it is not clear if the income is taxable, send the documentation to the Policy Manager for review.
5220.02 Contract Sales - The proceeds received from the contract sale of property are considered unearned income and are countable. Verification is required.
5220.03 Dividends - Regular payments of dividends earned from an investment are countable as income.
5220.04 Insurance Payments - Only recurring insurance payments that are unrelated to life insurance, burial proceeds, death benefits, or the repair and replacement of property are countable. Verification is required. See 5406 for more information about exempt insurance payments.
5220.05 Interest - Regular payments of interest earned from an investment are countable as income.
5220.06 Lottery/Gambling Winnings - Gambling winnings from any source are treated as unearned income in the month received. Gambling winnings are generally cash, prizes or in-kind items won in a game of chance, including but not limited to lotteries, sweepstakes, wagering pools, bingo games, card games, roulette wheels, dice games, slot machines, or any other game involving an element of chance.
Gross amounts are counted even if taxes are taken out prior to paying the household. Gambling winnings are countable using prospective income budgeting standards per 06100 only if the income is expected to continue. In the case of qualified lottery and gambling winnings of $80,000 or greater received in a single payout, the income is to be counted in the month received through a period of up to 120 months, as determined by a formula provided by the 2018 statute, see T5 Gambling Winnings – Income Budgeting Table. Per federal guidelines, states must apply this formula to qualified lottery or gambling winnings received on or after January 1, 2018.
With the exception of winnings resulting from games conducted by a tax-exempt religious or charitable organization, any winnings from a lottery, sweepstakes or wagering pool sponsored by a state, multi-state or multi-jurisdictional lottery organization, or any lump sum winnings from bookmaking, slot machine, roulette wheel, dice table, lottery, numbers game, or similar game of chance conducted by a private or for-profit individual or organization shall be counted in accordance with the T5 Gambling Winnings – Income Budgeting Table. Information received on the application or verbally from the consumer regarding the date of receipt and the gross amount of winnings shall be used by KEES to calculate the monthly amount to be budgeted for this income.
Note: With respect to non-cash prizes, like car or boat, these should continue to be considered as lump-sum income in the month received.
Continued eligibility shall be granted where the counting of income as indicated in this section results in ineligibility and loss of coverage and causes undue medical or financial hardship. For purposes of this provision, hardship shall be defined as follows:
1. Medical Hardship – The individual must demonstrate that the loss of eligibility put the individual at risk of death or permanent disability without the medical coverage.
2. Financial Hardship – The individual must demonstrate that the gambling winnings being counted as income are no longer accessible or available to meet medical needs.
When hardship is granted, the gambling winnings shall no longer be counted as income in determining eligibility beginning with the month the hardship was requested.
5220.07 KPERS - Payments received from the Kansas Public Employee Retirement System (KPERS) are countable as income.
5220.08 Native American Tribal Disbursements - This income type refers to income received from casino profits, also known as Per capita income. Income from gaming is countable. All per capita income received by a Kansas Tribe Members is from gaming. Non-Kansas tribes will require additional research to determine the purpose of the disbursement in order to assess whether it is countable or exempt. When this income is received on other than a monthly basis, it is considered intermittent unearned income and the rules of 5213 apply. Also see 5409 for more information about Native American income types that are exempt.
5220.09 Oil Royalties/Mineral Rights - Payments from Oil Royalties and Mineral rights are countable. Verification is required.
5220.10 Pensions - Income payments from a pension are countable. Benefits are considered the income of the person for whom they are intended.
5220.11 Per Capita - Another term used for Native American Tribal Disbursements. See 5220.08.
5220.12 Railroad Benefits - Railroad benefit payments are countable. Benefits are considered the income of the person for whom they are intended. Verification is required.
5220.13 Rental Income - Income from rental properties shall be treated as countable self-employment income. See 5330.
5220.14 Retirement Income - Retirement income is countable. Benefits are considered the income of the person for whom they are intended.
5220.15 Social Security - Income from Social Security Disability and Retirement benefits are countable. Benefits are considered the income of the person for whom they are intended.
5220.16 Spousal Support - Spousal support payments, or alimony, as a result of a divorce decree effected or modified after December 31, 2018 are not taxable and are thereby considered exempt income for MAGI purposes; however, spousal support payments from agreements made prior to December 31, 2018 continue to be countable. When this is the case and the spousal support is paid through the court, the gross amount before the fee is deducted is considered countable income. The amount of the fee is considered a household expense and is not to be excluded as income.
5220.17 Trust Income - Payments from a non-special needs trust are countable if they are taxable. Verification is required. If it is not clear if the income is taxable, send the documentation to the Policy Manager for review.
5220.18 Unemployment Compensation - The gross amount of unemployment compensation is countable income, even if some of the payment has been intercepted for payment of child support or other repayment plans.