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MinnesotaCare Income Changes (Archive)

Clients must report changes following policy found in Income Changes and the policy explained in this section for MinnesotaCare (MCRE).

Income Change - Renewal.

Income Change - Between Renewals.

Substantial Change.

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Income Change - Renewal

Act on all income changes reported at renewal.

Require verification of income at renewal whether reported prior to or at renewal.

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Income Change - Between Renewals

Clients are required to report changes in income within 10 days of the change.  

Act immediately on an income change when reported.  

l  Households that voluntarily cancel coverage due to active military duty may re-enroll following the tour of duty without regard to increases in income or assets. Disregard increases in income or assets reported at the time of or after re-enrollment until the household’s annual renewal. See Special Provisions - Active Military Duty.

l  Provide 10-day notice of any negative actions.  

l  Do not require verification of an income change.

l  Update MMIS information to decrease or increase the premium amount.

l  Document changes in case notes.

Example:
Ellen contacts her worker and reports she has received a wage increase.

Action:
Act upon the change immediately. Provide 10-day notice for any negative actions, including an increase in premium amount.

Example:
On May 21, Rita calls to report her husband, Karl, left the household. Karl did not have coverage, but his income was counted to determine the household's premium.

Action:
Act to remove Karl's income and decrease the household size immediately.

Example:
Anthony calls his worker to report that his Unemployment Insurance (UI) stopped and he began a job. The wages he reports from the job are higher than the UI and would result in an increased premium.

Action:
Act on the change to increase Anthony’s premium giving 10-day notice.

Example:
Jackson reports changes in his household's employment. He received a raise and his wife started a new job at a lower hourly rate. The combined effect of the two changes is decreased household income that would result in a lower premium.

Action:
Act on the income changes immediately.

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Substantial Change

When self-employment income changes check to see if it is:

l  A normal fluctuation. This is not considered substantial change.

l  The nature or scope of the business has changed.

When the nature or scope of a business creates an income change:

n  Request business records covering the time period since the last tax return was filed for clients who submit tax returns but report a substantial change in income.

Example:

Mr. Jones is a dairy farmer. He sold half his herd at the end of the last tax year. He expects his income for the coming year to be about one-half of the previous year’s income.

Action:

Consider this to be a substantial change. Use current business records to determine income. Also, determine whether Mr. Jones received countable capital gains from the sale of his herd.

n  If the client asks for assistance determining whether or not there has been a substantial change, determine whether the change affects eligibility, including eligibility for children with a fixed premium.

Example:

Ms. Anderson and her children are enrolled in MCRE. She owns a beauty shop. Her income for the last tax year was over 150% FPG. At the time of her annual renewal, she reports that her earnings have significantly decreased. Her projected income is now below 150% FPG based on her current business records.

Action:

This is a substantial change. Her children will now be eligible for a fixed premium.

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