Provider Notice issued 04/15/10

Reporting Extra Income
 

Reductions in room and board charges and move-in incentives provided to Medicaid-eligible residents by supportive living facilities (SLFs) must be reported to the Department of Human Services (DHS) local office caseworker or reported through the Recipient Eligibility Verification (REV) System as income for the month of receipt, using Box 8 of Form HFS 1156, Long Term Care Facility Notification. Pursuant to 89 Ill. Adm. Code 140.513, Notification of Change in Resident Status, change in income must be reported within five working days of the change.

Move-in incentives resulting in a change in resident income include, but are not limited to, the following examples:

• Department of Housing and Urban Development (HUD) requirements for lower rent charge;

• Move-in incentive offering a higher personal needs allowance for a set period of time;

• Move-in incentive offering free rent for a set period of time; and

• Move-in incentive offering a one-time lump sum payment.

In any situation where a Medicaid-eligible resident is given money or allowed to keep money over the $90 personal needs allowance, the additional money must be reported to DHS.  It will be considered income for the month of receipt and applied toward the Department of Healthcare and Family Services’ payment to the SLF for services. Any excess income not used during the month of receipt will be applied toward the resident’s asset limit of $2000. 

There is an exception to the above policy. Nonexempt income of a resident moving from the community must be applied toward the cost of care starting with the first full month a resident is in the facility. Therefore, the above examples would not apply to the first month of residency if a resident were admitted after the first of the month.

Other incentives that do not involve giving a resident cash, such as a resident receiving a television at the time of move-in, paying moving expenses into the SLF, or providing free phone or cable television are not considered income or an asset since cash is not being provided to the resident.

All forms referenced are available on the departments’ Medical Forms Web site.

If you have any questions concerning this notice, contact the Bureau of Long Term Care at 217-524-7245.

Theresa A. Eagleson, Administrator

Division of Medical Programs