*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016.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. ***
Effective: June 1, 2011 |
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21.25 - MA Method A Income Calculation |
Archived: June 1, 2016 (Previous Versions) |
The purpose of the income calculation is to determine a person’s net income. This net income is compared to the appropriate income standard to determine if the client is income eligible. This section discusses the income calculation for clients using MA Method A income rules.
Note: For specific information on MA Method A for LTC clients, see MA Payment of Long-Term Care (LTC) Services.
The income calculation steps for MA Method A are:
1. Determine gross income. See Determining Gross Income - MA.
2. Deduct disregards and deductions, if applicable, in the listed order to arrive at net income:
l Unearned Income.
l Earned Income.
3. Compare the appropriate income standard to the net income to determine if the client is income eligible.
l The client is income eligible if the client’s net income is at or below the income standard.
l Compare the net income to the spenddown standard to determine the spenddown if the client’s net income exceeds the income standard.