8143 Income Provisions
When a husband or wife enters a 
	 medical institution (whether or not the facility is Medicaid approved) 
	 for at least 30 consecutive days, only the separate income of the 
	 institutionalized spouse shall be used in determining his or her eligibility 
	 beginning with the month the arrangement begins. In the case of income 
	 which is received in both names, of the income shall be considered 
	 available to each unless otherwise established. In the case of income 
	 which is received by either or both spouses and to another person 
	 or persons, the income shall be considered available to each spouse 
	 in proportion to their interest or equally divided if the interest 
	 is not specified.
	 
These provisions are only applicable in those instances 
	 in which one spouse lives in the community (including HCBS arrangements) 
	 and the other spouse resides in the institutional setting. If both 
	 a husband and wife begin institutional care or if one or both enter 
	 a nonmedical institution, the provisions of (2) below shall apply.
	 
If the community spouse is also an applicant or recipient 
	 (including persons receiving HCBS or assessed and chosen HCBS) only 
	 his or her own income as well as any income contributed to the community 
	 spouse shall be considered for the community spouse beginning in the 
	 month the care arrangement begins.
	 
When both a husband and/or wife 
	 enters an institutional living arrangement (whether or not the facility 
	 is Medicaid approved) for other than a temporary stay as defined in 
	 8113 or either or both spouses enter 
	 a non-medical institution, the total income of husband and wife shall 
	 be considered in determining eligibility for the month the arrangement 
	 starts. Thereafter, only the applicant/ recipient's own income as 
	 well as any income actually contributed can be considered in determining 
	 eligibility or amount of patient obligation. (See item 4 below for 
	 allocation of income).
	 
Income identifiable as belonging 
	 specifically to a child in an institutional arrangement (such as Social 
	 Security and VA benefits) must be considered (unless otherwise exempt) 
	 as available to the child in determining eligibility regardless of 
	 who is payee. When a child under age 18 enters an institutional living 
	 arrangement (whether or not the facility is Medicaid approved) a minimum 
	 of 30 days, income of the parent(s) shall not be considered available 
	 to the child in determining eligibility beginning with the month the 
	 institutional arrangement begins. However, parents of children in 
	 state institutions may retain a legal obligation for payment of costs 
	 above those covered by the medical program. Parental obligation will 
	 be established by institutional personnel.
	
	When the stay does not exceed 30 days, independent living methodologies 
	 apply and the income of the parent(s) is countable if required by 
	 the specific medical assistance program.
Upon leaving the institution, the parents' income shall 
	 again be considered beginning with the month following the month of 
	 discharge from the institutional arrangement.
	 
All income allocated by an individual 
	 receiving long term care in a Medicaid approved institutional living 
	 arrangement for the support of a minor child who is not living with 
	 the community spouse (or where a community spouse does not exist) 
	 and who is without sufficient income to meet his or her maintenance 
	 needs shall be exempt. This provision is not, however, applicable 
	 to persons in adult care homes whose financial eligibility is determined 
	 based on the spenddown provisions of 8172.2 
	 (2)(b).
	 
If there is a community spouse or a community spouse and minor child in the home, income shall be allocated in accordance with the spousal impoverishment provisions of 8144.2.
	The allocation shall be calculated by using the Determination of Need 
	 (Medical Assistance) worksheet (ES-3104.5). 
	 The amount of the allocation when added to the nonexempt gross earned 
	 and unearned income of the children and any legally responsible person 
	 with whom they live cannot exceed the protected income level for the 
	 appropriate number of persons in independent living. Income exempt 
	 under the provisions of 6310 and 
	 6410 and subsections shall not be 
	 considered. Allocation will be permitted even though it may render 
	 the children ineligible for cash assistance or SSI.
	 
If requested, eligibility of the children for medical will be determined based on their resources and considering the allocated amount as income. A separate application is required. Ineligibility of the child for medical does not prevent the individual receiving long term care from allocating.