7240 Income deductions - The following deductions are used in the medical assistance programs to determine countable income.
7241 Deductions for MDN, QMB, LMB, QWD, and Working Healthy - A portion of all income (earned or unearned) is disregarded from gross nonexempt income in determining eligibility. Except for pre-tax payroll deductions, IRWE and BWE disregards described below, one disregard is allowed for the combined incomes of all individuals in the plan and any legally responsible persons who are in the home and excluded from the plan. For pre-tax payroll deductions, IRWE and BWE, separate deductions apply for each participating member of the assistance plan. Disregarded income is not considered available to meet medical expenses. For deductions related to NF, see 8150 For deductions related to HCBS, see 8250.
The following are the amounts to be disregarded as income in the order listed:
1. From earned income, pre-tax payroll deductions, blind work expense (BWE) and impairment related work expense (IRWE) deductions shall be disregarded as income. The total amount of the disregard(s) cannot exceed the amount of earned income for each individual eligible for the disregard(s).
a. Pre-tax payroll deductions [not applicable to Working Healthy (WH)] used to reduce taxable income, such as health, dental or vision insurance, health savings accounts (HSA), flexible spending accounts (FSA), retirement accounts (401k or IRA), or life insurance shall be disregarded from the earnings of the individual. To be allowed, the deductions must be verified per 1320 and subsections, unless the total self-attested amount of pre-tax payroll and any IRS income tax deductions (described in subsection 2. below) combined does not exceed $300.
b. Certain work expense deductions for blind or physically impaired individuals shall be disregarded as income. This disregard does not apply to ineligible members of the assistance plan. The standard amounts may be deducted if allowable expenses are reported. If expenses exceed this amount, actual expenses may be used but must be verified and averaged. Expenses cannot be subject to reimbursement from any source (including Medicaid, WORK payments, or the employer).
i. Blind Work Expense (BWE) - For the blind, the first $300 of earned income is disregarded for persons reporting allowable work expense(s). If verified expenses exceed this amount, actual average expenses shall be allowed. Allowable expenses for the blind are expenses reasonably attributable to earnings of the income. The following are allowable expenses:
• Guide dog
expenses including the (cost of obtaining and maintaining the animal such
as food, licenses and vet bills);
•
Transportation to and from work (For purposes of determining actual expenses
for private transportation, the current state reimbursement rate for privately
owned vehicles shall be used. This includes the increased rate for specially
equipped or modified vehicles to accommodate a disability. Because this
standard mileage rate includes expenses for gas, oil, insurance, etc.
in the determination, these items are not separately allowable. The cost
of modifying a vehicle are allowable (e.g., installing a ramp) but the
cost of the actual vehicle is not. Actual costs of public transportation
(e.g., cab fare, bus tokens) shall be allowed.);
•
Federal, state and local income taxes, Social Security tax;
•
Attendant care services;
•
Visual aids and translation services;
•
Drugs (except for lifestyle or cosmetic medications) and other medical
expenses or equipment NOT covered by Medicaid, Medicare or other insurance,
including co-payments;
• Costs of training to use special equipment.
ii. Impairment Related Work Expense (IRWE) - For others, the first $100 of earned income is disregarded for persons reporting allowable work expense(s). If verified expenses exceed this amount, actual average expenses shall be allowed. Allowable expenses are those directly related to enabling a person to work which are incurred because of a physical or mental impairment. The following are allowable expenses:
•
Attendant care performed in the work setting or helping prepare for work;
•
Specialized Transportation to and from work; Examples include structurally
modified vehicles to accommodate the individuals disability (both the
operating costs and the cost to modify), the costs of a driver or taxicab
if the individual requires assistance and cannot manage to get off or
on public transportation or public transportation has not been modified
for the person’s disability (e.g., wheelchair accessible). Transportation
is not allowable for persons who can drive an unmodified car or utilize
public transportation without assistance.
•
For purposes of determining actual expenses for private transportation,
the current state reimbursement rate for privately owned specially equipped
vehicles shall be used. This is the increased rate for specially equipped
or modified vehicles to accommodate a disability. Because this standard
mileage rate includes expenses for gas, oil, insurance, etc. in the determination,
these items are not separately allowable. Actual costs of public transportation
(e.g., cab fare, bus tokens) shall be allowed. The cost of modifying a
vehicle are allowable (e.g., installing hand controls) but the cost of
the actual vehicle is not.
•
Drugs (except for lifestyle or cosmetic medications) and other medical
expenses or equipment NOT covered by Medicaid or other insurance, including
co-payments;
•
Service Animal expenses including the costs of obtaining and maintaining
the animal such as food, licenses and vet bills;
• Non-medical equipment and services, such as tools and one-handed typewriters, related to the impairment.
2. The first $20 per month of any income (this disregard is to be applied first to unearned income, if any, with any remainder of the disregard applied to earned income, if any); and
3. The first $65 per month of gross (or adjusted gross) earned income; and
4. One-half of the remainder of earned income.
5. IRS income tax deductions [not applicable to Working Healthy (WH)] used to reduce taxable income, such as educator expenses, moving expenses of members of the military, alimony paid, or student loan interest paid shall be disregarded as income. To be allowed, the deductions must be verified per 1320 and subsections, unless the total self-attested amount of IRS income tax and any pre-tax payroll (described in subsection 1.a. above) deductions combined does not exceed $300 per month.
7242
Deductions for MediKan - There are no income deductions for the
MediKan program. The gross monthly countable income is budgeted against
the income limit for the appropriate household size (7430
(6))