Md. Code Regs. 07.03.05.09

Current through Register Vol. 52, No. 1, January 10, 2025

Section 07.03.05.09 - Treatment of Lump Sum Income

A. Lump sum income is a nonrecurring money payment.

B. In determining eligibility, the portion of the lump sum actually available to an individual is counted as income in the following way:

(1) The lump sum income is added to the sum of all other countable income for the month and the deductions allowed in §C of this regulation are made;

(2) Income resulting from the computation in §B(1) of this regulation is divided by the allowable amount;

(3) The individual is ineligible for the period of months equal to the quotient resulting from the division in §B(2) of this regulation beginning with the first month for which advance notice requirements can be met;

(4) Any amount remaining which is less than the allowable amount is counted as income in the first month after the ineligibility, if any, ends; and

(5) The individual who receives a lump sum payment in the month of application is ineligible for the period of months equal to the quotient resulting from the division in §B(3) of this regulation beginning with the month of application.

C. Shortened Period of Ineligibility for Recipients of Lump Sum Income.

(1) The local department shall shorten the period of ineligibility due to receipt of lump sum income if the lump sum income, or a portion of it, becomes unavailable to the individual due to circumstances beyond the control of the individual.

(2) The lump sum income, or a portion of it, is considered unavailable if the lump sum income is verified to be no longer in the possession of the individual and cannot be recovered or used for everyday expenses.

(3) Circumstances that are considered beyond the control of the individual are:

(a) Theft of money;

(b) Disaster defined as fire, flood, tornado, or civil disorders;

(c) Eviction or foreclosure, or payments of past due rent or mortgage payments to avoid eviction or foreclosure;

(d) Theft or breakdown of an essential appliance, defined as a refrigerator, cooking or heating stove, or washing machine, necessitating repair or replacement, so that the individual's living arrangement may continue;

(e) Breakdown of essential household furnishings, equipment, or structure necessitating repair or replacement, so that the individual may remain in the home;

(f) Lack of heating fuel or utilities, insufficient heating fuel supply, or threat of imminent utility cutoff; or

(g) Allowable medical expense payments for:

(i) Treatment or service rendered in a hospital, clinic, or nursing home;

(ii) Treatment or service rendered by a physician, dentist, certified psychologist, licensed social worker, or any health professional licensed or certified by the State;

(iii) Prescription drugs if prescribed by a health professional licensed under State law to prescribe drugs; or

(iv) Over-the-counter medications or health-related supplies or appliances ordered by a health professional licensed by the State.

Md. Code Regs. 07.03.05.09