MILITARY PAY AND ALLOWANCES (MAM)

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Members of the Armed Forces receive many different types of pay and allowances.

Military pay: Any income received as military salary, including basic pay, special pay, bonus pay, combat pay, incentive pay, or any other pay.

Treatment: Earned Income for all categories of Medicaid, including the medical assistance categories that use modified adjusted gross income (MAGI) in the eligibility determination process.

Combat Pay: Income that a military member receives as a result of service in direct support of a combat zone or qualified hazardous duty area.

Treatment: Excluded Income for the MAGI categories of Medicaid

Earned Income for the non-MAGI categories of Medicaid.

Military allowances: Income or benefits received by qualifying military members and their families, such as the Family Subsistence Supplemental Allowance (FSSA) or the Family Separation Allowance (family allowances), living allowances, moving allowances, travel allowances, death allowances, in-kind military benefits, or any other allowances.

Treatment: Excluded Income for the MAGI categories of Medicaid.

Unearned Income for the non-MAGI categories of Medicaid.

References: He-W 601.03(k), He-W 601.05(c), He-W 601.08(k), He-W 652.02, He-W 654.01, He-W 654.04, He-W 654.07, RSA 167:3-c,I, RSA 167:4, I(a), RSA 167:7, IV, 42 CFR 435:603(e), Section 1612(a)(2) of the SSA [42 USC 1382a(a)(2)], IRS Publication 3 - Armed Forces Tax Guide [www.irs.gov/pub/irs-pdf/p3.pdf]