BENEFITS (MAM)

SR 17-33 Dated 10/17

Previous Policy

____________________________________________________________

Income considered from sources such as:

●

annuities (an amount payable yearly);

●

disability or sickness payments;

●

fraternal benefits;

●

insurance payments;

●

pensions;

●

railroad retirement;

●

retirement plans;

●

long-term or short-term disability;

●

unemployment compensation; and

●

worker's compensation (insurance payments received for an on-the-job injury).

 

See also SSA, SSI, and VA Benefits.

 

Treatment:

 

Non-MAGI Categories of MA - Unearned Income

MAGI Categories of MA - If the benefits are taxable, the benefits are treated as unearned income. If the benefits are not taxable, the benefits are not counted.

 

The rule on the taxability of benefits paid is the same for both short-term and long-term disability policies:

●

If insurance premiums are paid with either the employee’s pre-tax dollars or by the employer, the benefits paid out are taxable and will be counted in MAGI.  Taxable benefits are treated as unearned income.

●

If insurance premiums are paid with either the employee’s after-tax dollars or by the employee outside of work, the benefits paid are not taxable to the recipient and will not be included as taxable income or counted in MAGI.

 

Exceptions:

 

●

Benefits specifically designated as payment for hospitalization or medical services are excluded income.

●

Worker's compensation benefits are excluded income in MAGI MA.

 

References: He-W 601.08(k); RSA 167:7, IV; RSA 167:80; 42 USC 1382a(a)(2); 26 USC §104(a)(3)