Effective: April 1, 2009
21.30 - MA Method B Income Calculation
The purpose of the income calculation is to determine a person’s net income Income remaining after subtracting each program's deductions and disregards from gross income.. This net income is compared to the appropriate income standard to determine if the client is income eligible. This section discusses the income calculation for clients using MA Method B income rules.
For specific information also see
l MA Payment of Long-Term Care (LTC) Services.
l MA-EPD Income Calculation.
l Medicare Savings Program Income Calculation.
The income calculation steps for MA Method B are:
1. Determine gross income.
2. Deduct disregards and deductions, if applicable, in the listed order to arrive at net income:
n Unearned Income.
a. Disabled Widow/Widower Disregard.
b. Widow/Widower Disregard.
c. Pickle Disregard.
d. Disabled Adult Child Disregard.
e. RSDI COLA Disregard.
f. PASS Deduction.
n Earned Income.
a. PASS Deduction.
b. Blind Disabled Student Child Disregard.
c. $65 Earned Income Disregard.
d. Work Expense for disabled basis of eligibility (Impairment-Related Work Expense Deduction).
e. One-half of remaining earned Income.
f. Work Expense for blind basis of eligibility (Blind Work Expense Deduction).
Note: Clients whose disability is blindness cannot use the Impairment-Related Work Expense Deduction, but must instead use the Blind Work Expense Deduction. See Work Expense Deduction for more information.
3. Compare the appropriate income standard to the net income to determine if the client is income eligible.
n The client is income eligible if income is at or below the income standard.
n Compare the net income to the spenddown standard to determine the spenddown if the client’s net income exceeds the income standard.
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