MA Method B 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 B.

Note:  For specific information on MA Method B for LTC and Elderly Waiver clients, see Long-Term Care (LTC) and Elderly Waiver (EW).

For specific information on MA-EPD, see MA-EPD Income Calculation.

Income calculation steps for MA Method B 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. Disabled Widow/Widower Disregard.

b. Widow/Widower Disregard.

c. Pickle Disregard.

d. Disabled Adult Child Disregard.

e. PASS Deduction.

l  Earned Income.

f. PASS Deduction.

g. Blind Disabled Student Child Disregard.

h. $65 Earned Income Disregard.

i. Work Expense for disabled basis of eligibility.

j. One-half of remaining earned Income.

k. Work Expense for blind basis of eligibility.

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 income standard to determine the spenddown.

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