6-002.07A2c Third Party Medical Payments
Income received from a third party that pays the former ward directly is:
1. Disregarded if it is refunded to the provider or the Department as reimbursement for a specific service; or
2. Counted as unearned income if the former ward fails or refuses to refund these payments.
If the former ward receives a third party medical payment directly and the medical expense for which the third party medical payment is intended is payable by NMAP, the worker must send a demand letter advising the former ward that s/he must reimburse the Department or the provider up to the amount of payment which has been or will be made for the specific service. The former ward is allowed ten days from the date of notification to reimburse the Department or pay the provider.
If the former ward refunds within ten days, the worker must take no further action. If the former ward fails or refuses to refund within ten days, the worker must consider the entire third party payment as unearned income in the first month possible, taking into account adequate and timely notice. Any balance remaining is considered a resource in the following month.