5162-3 MILITARY BASIC ALLOWANCES
Both the Basic Allowance for Housing ( BAH ) and the Basic Allowance for Subsistence ( BAS ) are in-kind income when determining eligibility for Medicaid, including Denali KidCare. The BAH amount must be determined for all applicants who are military personnel.
A housing or food allowance paid to any employee is an employment-related benefit and countable earned income for Medicaid. Any free housing provided by an employer (i.e., the military, church, or school district) is also an employment-related benefit that is essentially paid in kind. The value of that benefit is counted as in-kind income for all Medicaid programs.
There are four housing options typically available to military personnel with dependents living in Alaska.
This means living in housing or barracks owned by the military and located on military property. Families do not live in barracks, of course, but typically live in on-base apartments or duplex housing. There is On-Base Housing at Elmendorf, Eielson, Richardson, Greely, and Wainwright.
This means housing owned by a private citizen who has entered into an agreement with the military (not the individual) to lease the property exclusively to the military at a negotiated rate. This property is located in the community. A family living in government leased housing usually pays rent by having an allotment taken out of the military pay as shown on the Leave and Earnings Statement ( LES ). Typically, the family pays no utilities or damage deposit and has limited lease restrictions. The family may only be responsible for TV and telephone costs, if used. Military personnel have to qualify for government leased housing, where preference is given to rank and number of dependents. We know that the USCG uses this type of housing in Juneau since there is no other military owned housing, but it is probably used infrequently by other branches of service.
3. Government Leased "Set Aside" Housing:
This is government leased housing, but it is reserved for families with greater financial need (i.e., larger families) and is used only until base housing becomes available. For example, at Elmendorf AFB , there is such a long waiting list for on base housing that the Air Force has entered into agreements with apartment/home owners who set aside a limited number of units for Elmendorf personnel.
This means housing owned and maintained by a private citizen and rented or leased at the market influenced rate as determined by the owner. Military personnel use this housing if there is no on-base housing or government leased housing available or if they simply choose to live in private housing. The family pays fair market rent and utilities.
Beginning in 1998, all branches of the military changed the way they compensate military personnel for housing costs. There are two payment methodologies depending upon the type of housing and a number of other factors.
5162-3 B. MILITARY HOUSING ALLOWANCES
There are two basic types of housing allowances:
1. Basic Allowance for Housing ( BAH ):
This amount is paid to military personnel who live in private market housing and government leased set aside housing. The amount is determined by elaborate geographic and market cost studies done for the military. The amount varies by rank and by community, but it is the same for all branches of service. When military personnel elect to live in private market housing, this is the allowance they get.
2. Basic Allowance for Housing II ( BAH II):
The BAH II is the equivalent to what used to be the Basic Allowance for Quarters (BAQ), but without the old VHA adjustment. It does not vary by geographic location. It is the housing allowance given to military personnel in particular circumstances such as a reservist on active duty less than 20 weeks, a soldier subject to court-ordered child support, a soldier in confinement, etc. In Alaska, the BAH II is also used by the USCG for individuals in government leased housing. Even though it is significantly lower than the BAH amount, a seaman may be financially better off living in government leased housing and taking the BAH II amount because they do not have to pay utilities or security deposits and the quality of the housing is often better than what a seaman could afford in the private market.
5162-3 C. DETERMINING THE VALUE OF MILITARY IN-KIND INCOME
Because the payment systems, accounting systems, and housing options vary depending on the branch of service, caseworkers cannot always rely on the housing allowance reported on the LES to determine the amount of in-kind income the military family receives. In fact, the LES of a soldier living in on-base housing may not show any allowance for housing even though he or she receives that benefit. Use the BAH for all military personnel regardless of the family’s housing arrangement.
You can easily determine the value of the BAH for every pay grade (i.e. E7) and duty location (Zip Code) in Alaska using the following military web site: http://www.defensetravel.dod.mil.
Include the BAH amount determined as earned in-kind income along with all other pay or entitlements to determine financial eligibility for Medicaid.
This method assures that military families who live in military provided housing do not have an unfair advantage over families living in private housing.
5162-3 D. EIS
Make sure the BAH amount is coded IK to distinguish it as in-kind income. Since Food Stamps does not count in-kind income, it is important that the BAH be identified as such.
5162-3 E. BAH AND BAH II DIFFERENCES
The following table illustrates the difference between the Anchorage BAH rate and the BAH II rate for a few military pay grades. It is important that the higher BAH rate be use to determine eligibility. Refer to the web site mentioned above for all other current information.
Pay Grade |
BAH with dependents for Anchorage |
BAH II with dependents |
E4 |
$789 |
$434.40 |
E6 |
$1,002 |
$555.60 |
E8 |
$1,224 |
$647.70 |
O1 |
$818 |
$522.60 |
BASIC ALLOWANCE FOR SUBSISTENCE ( BAS )
This allowance is payment for food and should be reflected on the LES (typically $7.50 per day). It is typically given to the enlisted individual only, not to family members. The BAS is part of the benefit package and is countable in-kind income.
5162-3 F. NON-MILITARY HOUSING ALLOWANCES
In non-military situations where the employer provides housing, it may be more difficult to determine the value of that income. These situations will have to be treated on a case-by-case basis, in which the caseworker makes a conservative estimate of the value. Temporary housing situations such as a mine worker who lives one week on site, then one week in town, or a fishing boat owner allowing a crew member to temporarily live on the boat while in port, would not be counted as in-kind income since they are not part of the employee benefit package and the employee is expected to provide their own housing while off duty.
|
||
|
|