8150 Determination of Countable Income - Countable income is that amount of income which is considered in determining eligibility and the amount of obligation for medical expenses. For persons in non-Medicaid approved institutions or whose financial eligibility is determined based on the spenddown provisions of 8172 (3), the independent living policies of 7240 are applicable.

In determining patient liability, all exempt and nonexempt income shall be considered beginning either with the month a person begins receiving long term care or the following month as specified in 8113 except for:
 

1. Income allocated for the support of dependents in accordance with 8143 (4) or the spousal impoverishment provisions of 8144.2.
    
2. Holocaust survivor payments in accordance with 6410; and
    
3. Reduced VA pensions in accordance with 6410.
   
   Note: The full pension amount [including aid and attendance (A&A)] of a veteran or spouse which has not yet been reduced, but will be upon notification to VA of Medicaid NF approval, is countable towards the patient liability. The portion of the VA benefit attributed to unusual medical expenses (UME) continues to be exempt.
   
   Only individuals without dependents are subject to the reduced VA pension. Veterans with a spouse or other dependent(s) are not subject to the reduced VA pension. If the VA pension is not subject to reduction, the portion of the benefit attributed to aid and attendance (A&A) and unusual medical expenses (UME) is exempt towards the patient liability as indicated in items (4) and (5) below.
    
4. VA aid and attendance benefits in accordance with 6410; and
    
5. VA benefits resulting from unusual medical expenses (UME) in accordance with 6410.