MILITARY PAY AND ALLOWANCES SR 15-11, 11/15 (MAM-A)

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.

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]