When a person or organization pays an expense on someone's behalf, rather than giving them cash, this is considered in-kind income
. For example, if a family member pays your phone bill, then it is in-kind income; but if they write you a check so that you can pay your phone bill, it is cash income. In-kind income is usually not counted for purposes of Medicaid eligibility. However, see Medicaid Reference Guide, Income, at 106-108.1.