Effective: December 1, 2006 |
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21.25ar1 - MA Method A Income Calculation (Archive) |
Archived: April 1, 2009 |
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 A.
Note: For specific information on MA Method A for LTC clients, see MA Payment of Long-Term Care (LTC) Services.
Income calculation steps for MA Method A 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.
l Earned Income.
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 spenddown standard to determine the spenddown.