Computation of Fees (Archive)

The Department of Human Services (DHS) uses the following formula to compute parental fees for disabled children. Counties may use this formula to assess parental fees for social services costs but are not required to do so.

1. Begin with the parent's adjusted gross income (AGI) as reported on the previous year's Federal Tax Form 1040 (line 37) or 1040A (line 21). Do not include income of stepparents.

2. If the child lives with the parent, subtract $2400 from the AGI of the parent with whom the child lives.

3. If the parents live apart, subtract any court-ordered child support paid for the child receiving services from the AGI of the parent paying the support.

Note:  Subtract only current court-ordered child support payments; do not subtract arrearages .

4. Compare the result to the federal poverty guidelines for the household size. Count the child receiving MA services in the household size. Also count parents and dependents up to age 21. Do not count stepparents or stepchildren in the household size.

The parental fee schedule effective July 1, 2006 is:

Adjusted Gross Income (AGI)

Monthly Fee

Less than 100% FPG

None

100% FPG - 174% FPG

$4.00

175% FPG - 544% FPG

Sliding scale from 1% to 7.5% of AGI

545% FPG - 674% FPG

7.5% of AGI

675% FPG - 974% FPG

Sliding scale from 7.5% to 10% of AGI

975% FPG and up

12.5% of AGI

5. Divide annual fees by 12 to arrive at a monthly fee for billing purposes. Increase the monthly fee by 5% if the parents fail to obtain health insurance coverage for the child that is available through an employer at an annual cost to the parent of no more than 5% of the household's federal adjusted gross income.

Parental fee amounts change each fiscal year due to annual changes in the FPG.

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