TN 32 (02-92)

Citations:

20 CFR 416.1103(a) and (b);

20 CFR 416.1201(a)(3)

A. INTRODUCTION

An individual cannot always disburse in the month of receipt cash given him/ her to purchase approved medical or social services. To permit use of such funds in the manner intended, it is reasonable to assume, for a limited time, that the individual will use them to pay for the approved services and, therefore, that they are not available for his/her support and maintenance.

B. POLICY

1. What is Not a Resource

Effective July 1, 1988, a cash payment for medical or social services that is not income under SI 00815.050, also is not a resource for one calendar month following the month of receipt.

2. Exception

The rule in 1. above does not apply to cash received as repayment for medical or social services bills an individual has already paid. Even though not income, such cash is a resource and, if retained, is subject to resource-counting rules as of the first moment of the month following receipt.

3. Determination

If the cash was neither income nor repayment, it is not a resource for one calendar month following the month of receipt.

C. PROCEDURE

1. Development Not Required

Do not develop under this rule unless the retained cash, plus other resources, exceeds the applicable resource limit.

2. Development Required

If an individual/couple allege having retained cash intended to pay for medical or social services and it is material to eligibility, determine and document whether the cash:

• was income per SI 00815.050; and

• if not income, whether the cash was repayment for bills for medical or social services already paid by the individual.

D. REFERENCES

• Medical or social services as income, SI 00815.050.

• First-of-the-month rule for resources determinations, SI 01110.600.

• Commingled funds, SI 01130.700.