*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***

Chapter 20 - Income

Effective:  June 1, 2011

20.25.40 - Child Support

Archived:  June 1, 2016 (Previous Versions)

Child Support

Child support is a voluntary or court-ordered payment by non-custodial parents for support of their children.

General Provisions.

MinnesotaCare.

MA Method A, MA Method B, MA-EPD, and Medicare Savings Programs.

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General Provisions

For all programs, follow these rules to determine the gross child support income:

l  Count the full amount of child support payments received as unearned income for a child who is a household member whether it is paid voluntarily or pursuant to a court order.

Note:  If the household has just begun receiving child support, base the calculation on the amount of the court order or agreed upon voluntary amount.

l  Count child support payments received by the county child support enforcement agency and forwarded to the household. However, do not count child support payments received and retained by the county child support enforcement agency on behalf of a child who receives MFIP.

Note:  Do not require the client to submit duplicate verification if the county child support unit collects support for the client. Base information on the county child support records. Obtain information from the client only if the information is not available through the county child support agency.  

Child support income verified through the PRISM system may have the PRISM default date of January 1, 1995. This date does not always mean the recipient began receiving child support payments on that date.

l  Count court-ordered payments for dependent care expenses as part of the gross child support.

Example:

Jan receives regular monthly child support payments of $500 for her son. The county agency collects the payments and forwards them to Jan each month. The court order specifies payment of $400 per month for child support and $100 as reimbursement for Jan's day care costs.

Action:

Count the entire $500 as unearned income to Jan’s son.

l  Do not count payments to reimburse the custodial parent for health insurance premiums.

l  Do not count court-ordered cash payments for medical support. The custodial parent assigns these payments to DHS by signing the application. Make a medical support referral to the county enforcement agency to initiate redirection of the medical support payment.

Example:

Maria receives court-ordered child support payments for her two children through the county agency. The court order specifies $200 per month per child as child support, $100 as reimbursement for Maria's day care costs, and $50 cash payment for medical costs.

Action:

Count $500 per month:

n  $200 for each child.

n  $100 for day care ($50 per child).

n  Do not count the $50 medical support payment.

Advise Maria that the cash medical support payment will be sent to the DHS Benefit Recovery Section as reimbursement for MinnesotaCare or MA costs. Make a medical support referral.

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l  Count payments on arrearages if the payments are regular and can reasonably be expected to continue. Follow lump sum policy for irregular or infrequent arrearages.

Note:  Do not count payments on arrearages that are collected and retained by the county child support enforcement agency as reimbursement for a period when the child received AFDC or MFIP.

Example:

Mary reports on her application that she has been receiving $350 per month in child support payments. $300 is for current support and $50 is for arrearages of $5,000 owed to her.

Action:

Count the entire $350 as unearned income.

Example:

The county child support enforcement agency receives $400 for Joe’s daughter. They forward $300 per month to Joe and keep $100 which is arrearages owed for a period when Joe and his daughter received MFIP.

Action:

Count the $300 as unearned income for Joe’s daughter. Exclude the arrearage payment.

Example:

Janet receives $600 per month in child support payments. $500 is for current support and $100 is payment on arrears. The arrearages are paid up and she expects the payment to drop to $500 next month.

Action:

Anticipate $500 as ongoing child support.

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MinnesotaCare

Apply the following in addition to the General Provisions:

l  Do not allow any deductions from gross child support income.

l  Base the calculation on payments received in the past 30 days if any amount of child support is received at least monthly.

Example:

Barb submits a HCAPP dated December 5. She reports she receives child support payments of approximately $200 to $250 per month. In the past 30 days, she received one payment of $210.

Action:

Project annual child support income as 12 payments of $210.

Multiply $210 X 12 to calculate the annual child support amount.

Project annual child support income of $2,520.

l  Base the calculation on average payments received in the last 12 months or since child support began, whichever is less, if the household reports sporadic support payments received less frequently than monthly.

Example:

Angela submits a HCAPP dated July 3. She reports she receives direct child support payments of $200 for her son, but they are sporadic. She received $200 in seven of the past 12 months. She has not received any child support in the past 30 days.

Action:

Project child support income based on the actual payments Angela received in the past 12 months.

Angela received a payment of $200 seven times in the past 12 months. Multiply $200 X 7 to calculate the annual child support amount.

Project annual child support income of $1,400.

Example:

Maria submits a HCAPP dated July 3. She reports she has received sporadic child support for several years through the county. In the past 12 months, she received four payments. Maria received $243.10 on October 29, $243.10 on January 14, $243.10 on March 27, and $343.10 on May 1.

Action:

Calculate the average payment amount.

243.10 + 243.10 + 243.10 + 343.10 = $1,072.40 divided by 4 = $268.10.

Maria has received an average payment of $268.10, 4 times in the past 12 months.

Multiply $268.10 X 4 to calculate the annual child support amount.

Project annual child support income of $1,072.40.

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MA Method A, MA Method B, MA-EPD, and Medicare Savings Programs

Apply the following in addition to the General Provisions:

l  Base the calculation of child support income on the last 30 days if the household reports varying or sporadic payments. Budget the anticipated income if the client has not received child support within the last 30 days, but the household anticipates receiving child support during the certification period.   

Note:  Use the best information available in all situations.

Example:

Jackie reports that she received $200 in child support last month for her son Jack. However, she does not expect to receive support in the future because Jack’s father recently lost his job. She does not know when she will start receiving payments again.

Action:

Do not budget any child support income for Jack during the certification period. Remind Jackie that she is required to report any changes within 10 days.

Example:

Todd applies for MA for himself and his daughter Tanya on August 10. He is not requesting retroactive coverage. He reports on his application that he receives child support for Tanya. However, he has not received child support in the last 30 days.

Action:

Contact Todd to clarify how often he receives child support. Todd reports that he receives $400 quarterly and expects to receive the next payment in September. Budget $400 for Tanya in the months of September and December.

l  Count both current child support payments and payments on arrearages as income to the child for whom the payments are made if the child lives in the household.

Example:

Phyllis receives $300 per month in child support for her son Phil. $200 is current support and $100 is payment on arrearages.

Action:

Count the $300 as child support income to Phil.

l  Count payments on arrearages made for a child who is no longer in the household as unearned income to the custodial parent or other caregiver to whom the payments are made.

Example:

Phil turns 18 and leaves the household. Current support payments stop for Phil, but his mother Phyllis continues to receive $100 as payment on arrears.

Action:

Count the $100 as unearned income to Phyllis.

l  For Method B:

Note:  This does not apply to LTC income calculation.

n  Exclude child support payments received by or on behalf of children who:

m Receive services through the following waiver programs:

r  Community Alternative Care (CAC).

r  Developmental Disabilities (DD).

r  Community Alternatives for Disabled Individuals (CADI).

r  Brain Injury (BI).

m Are eligible for TEFRA.

n  For all other children, deduct one third of a child support payment from an absent parent received in each month, and count the remaining amount toward the child's income.

Note:  If the absent parent pays child support for more than one child in the household, first determine how the payment is apportioned between the children. Then, deduct one third from each child’s portion to determine the amount to count for each child.

Example:

Moira's two children are disabled and receive MA through the TEFRA option. She receives child support payments of $600 per month ($300 per child) from the non-custodial parent.

Action:

Exclude the child support payment for each child.

Moira’s children continue to be disabled but are no longer receiving MA through the TEFRA option.

Action:

Count $200 of the child support income for each child.

$300/3 = $100.  $300 - $100 = $200.

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