MA Method A Income Calculation (Archive)

The purpose of the income calculation is to determine a person’s countable net income. This net income will be compared to the appropriate income standard to determine if the client is income eligible for MA Method A.

Note:  For specific information on MA Method A for LTC clients, see MA Payment of Long-Term Care (LTC) Services.

Income calculation steps for MA Method A are:

1. Determine countable gross income.

2. Deduct disregards and deductions in the listed order to arrive at countable net income:

Note:  The rules for whom and when a disregard or deduction can be used are found in the section of the same name.

l  Unearned Income.

a. Child Support Deduction.

l  Earned Income.

a. Work Expense Deduction.

b. Earned Income Disregard.

c. Dependent Care Deduction.

d. Child Support Deduction.

3. Compare the appropriate income standard to the net income to determine if the client is income eligible.

l  If the client’s income is at or below the income standard the client is income eligible.

l  If the client’s net income exceeds the income standard the net income must be compared to the spenddown standard to determine the spenddown.

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