*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016.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 23 - MA Payment of Long-Term Care (LTC) Services

Effective:  June 1, 2014

23.15.10.10 - Family Allocations

Archived:  June 1, 2016 (Previous Versions)

Family Allocations

In addition to the Community Spouse Allocation, allocations may be made to certain other family members. The family allocation is deducted from income in the LTC income calculation.

Follow the steps outlined in this section to determine the amount to deduct for the family allocation.

Calculating an Allocation to Children Not Living with a Community Spouse.

Calculating an Allocation to Certain Relatives Who Live with a Community Spouse.

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Calculating an Allocation to Children Not Living with a Community Spouse

Calculate a family allocation to a minor child who does not live with a community spouse as follows:

1. Total the gross earned and unearned monthly income of all minor children not living with a community spouse. Do not include excluded income.  

n  Add all income received less often than monthly and divide by 12 to determine a monthly amount.

n  Do not allow MA disregards or deductions.

n  Do not count Veteran’s Administration Aid and Attendance benefits unless an amount has been apportioned specifically for the minor child(ren).

2. Subtract the income calculated in Step 1 from the 100% FPG standard for a household size equal to the number of minor children not living with the community spouse . No allocation is allowed if the result is less than or equal to $0.

3. Deduct the amount calculated in Step 2 from the LTC income calculation.

Example:

Ronald lives in a LTCF . He requests MA payment of LTC services beginning with July 2014. He has two children, Jeremy and Anne, under the age of 18. The children live with their aunt. Jeremy has a part-time job earning $400 gross income per month. Anne has no income.

Action:

Deduct a $912 family allocation in Ronald’s LTC income calculation for his minor children. Subtract the children’s income ($400) from $1,312 (100% FPG for a household size of two in effect in July 2014).

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Calculating an Allocation to Certain Relatives Who Live with a Community Spouse

Calculate a separate family allowance for each allowable family member who lives with a community spouse as follows:  

1. Total the gross earned and unearned monthly income of the family member. Do not include excluded income.  

n  Add all income received less often than monthly and divide by 12 to determine a monthly amount.

n  Do not allow MA disregards or deductions.

n  Do not count Veteran’s Administration Aid and Attendance benefits unless an amount has been apportioned specifically for the minor child(ren).

2. Subtract the income calculated in Step 1 from the community spouse minimum monthly income allowance.

3. Divide the result in Step 2 by three. Round to the nearest dollar. No allocation is allowed if the result is less than or equal to $0.

4. Deduct the amount calculated in Step 3 in the LTC income calculation.

Example:

Sandra lives in a LTCF. She is married and has a 22 year old daughter, Marcy, who lives at home. Marcy is a college student and is claimed as a tax dependent by Sandra and her husband. Marcy receives student loans and has a part-time job making $700 gross income per month.

Action:

Deduct a $422 family allocation in Sandra’s LTC income calculation for Marcy. Subtract $700 from $1,967 (minimum monthly income allowance in effect in July 2014) and divide by three. Do not count Marcy’s student loans as income.

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