*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016.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 21 - Income Calculation (Community)

Effective:  April 1, 2009

21.50.35 - Standard Deduction

Archived:  June 1, 2016 (Previous Version)

Standard Deduction

The standard deduction is a $20 deduction from income. It is only used for the Medicare Savings Programs. This section provides information on the conditions for use and how to apply the deduction.

Conditions for Use.

Applying the Deduction.

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Conditions for Use

The standard deduction only applies to the clients applying for or enrolled in the following programs:

l  QMB.

l  SLMB.

l  QWD.

l  QI.

Do not allow the standard deduction to determine eligibility for MA.

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Applying the Deduction

Apply a standard deduction of $20 to the earned income or unearned income for clients who meet the conditions.

l  Apply the disregard to unearned income first and any remainder to earned income if a client has both earned and unearned income.

l  Apply the disregard to the combined total earned or unearned income if the income of a spouse or parent of a client is deemed to the client. See Deeming of Assets and Income for specific deeming information.

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