*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016.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:  November 1, 2012

20.25.45 - Child Income

Archived:  June 1, 2016 (Previous Versions)

Child Income

This section explains how to count a child’s income when determining income eligibility for the Minnesota Health Care Programs. How a child’s income is treated depends on the health care program.

MinnesotaCare.

MA Method A.

MA Method B, MA-EPD, Medicare Savings Programs, and Long-Term Care.

Top of Page

MinnesotaCare

Exclude the earned income of children under age 19 who are full-time or part-time students.

Count the following unless the income is not counted or excluded under another provision:

l  earned income of children under age 19 who are not full-time or part-time students.

l  earned income of children age 19 or 20 regardless of their student status.

l  unearned income of all children under age 21.

Exclude all earned and unearned income of a child who is applying for or enrolled in MinnesotaCare for Certain Children Exiting Foster Care or a Juvenile Residential Correctional Facility when determining the child's eligibility. Follow standard MinnesotaCare guidelines to determine whether the child's income should be counted when determining the eligibility of other household members in whose household the child is considered a member.

Top of Page

MA Method A

Exclude the earned income of a child who is:

l  under age 18 or 18 years old and expected to graduate by age 19,

l  a full-time or part-time student, and

l  employed less than 37.5 hours per week.  

Note:  Exclude the earned income of a minor caretaker who meets these requirements. Count the earned income of a child who does not meet these requirements, unless the income is not counted under another provision.

Exclude the following earned income for children under age 18 or 18 years old and expected to graduate by age 19:

l  Workforce Investment Act (WIA) earned income of a full-time or part-time student employed at least 37.5 hours per week.

l  WIA earned income of a child who is not a student.

n  The exclusion is available for six months out of each calendar year.

n  Use the exclusion in the first six months possible.

Exclude all earned and unearned income of Refugee Unaccompanied Minors.

Count the earned income of all other children.

Count all unearned income of a child as income to the child, unless the income is not counted under another provision.

Note:  Count the unearned income of a minor caretaker as income to the minor caretaker and to the minor caretaker’s children and spouse, unless the income is excluded or not counted under another provision.

Example:

Jessica applies for MA for herself and her sons, Randy, age 17, and Jonathan, age 16. Randy attends high school full-time and works 20 hours per week. Jessica receives RSDI payments on Randy’s behalf because his father is deceased. Jonathan does not attend school and has a full-time job.

Action:

Take the following action:

m Exclude Randy's earnings from his job because he is a student and is employed less than 37.5 hours per week.

m Count the RSDI as unearned income to Randy.

m Count Jonathan's earned income.

Example:

Melanie, age 17, lives apart from her parents in the community. She receives MA for herself and her six-month-old son. She attends high school part-time and works 25 hours per week.

Action:

Exclude Melanie's earned income because she attends school part-time and is employed less than 37.5 hours per week.

Top of Page

MA Method B, MA-EPD, Medicare Savings Programs, and Long-Term Care

Count all earned and unearned income of a disabled child, unless the income is excluded or not counted under another provision.

Note:  Certain blind or disabled children may qualify for an earned income disregard. See Blind or Disabled Student Child Disregard.

Example:

Scott, age 16, is certified disabled by State Medical Review Team (SMRT) and receives MA through the Tax Equity Financial Reconciliation Act (TEFRA) basis. He attends special education classes part-time and works 10 hours per week.

Action:

Count Scott's earnings to determine his eligibility. Earned income of students is counted under MA Method B.

Top of Page