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Effective: December 1, 2006 |
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23.40.30.10ar1 - Community Spouse Allocation Example (Archive) |
Archived: October 1, 2008 |
Norma lives in an LTCF. Her husband Leo lives in the community.
l Leo receives RSDI of $700 and a private pension of $300 each month.
l He has a savings account that earned $600 interest for the most recent calendar year.
l He pays $400 rent each month plus electricity, which includes air conditioning, and phone.
l He pays $300 per year for renter's insurance.
l Norma receives RSDI of $800 each month.
Action:
Determine Leo's maximum allocation following the steps explained in LTC Community Spouse Allocation:
1. Determine Leo's total monthly income.
$700 RSDI + $300 Pension + $50 Interest ($600 divided by 12) = $1050 total monthly income.
2. Total Leo's monthly shelter expenses:
Allow the cost of rent, the full utility allowance because he pays for air conditioning along with other utilities, and the monthly amount paid for renter’s insurance.
$400 Rent + $305 Utility Allowance + $25 Renter’s Insurance ($300 divided by 12) = $730 total shelter expenses.
3. Subtract the basic shelter allowance from the community spouse’s total shelter expenses to determine the excess shelter allowance.
$730 total shelter expenses - $495 basic shelter allowance = $235 excess shelter allowance.
4. Add the minimum minimum monthly income allowance to the excess shelter allowance to determine the estimated maximum monthly income allowance for the community spouse.
$235 excess shelter allowance + $1650 minimum monthly income allowance = $1885 estimated maximum monthly income allowance.
5. Compare the estimated monthly income allowance to the maximum monthly income allowance.
Because Leo’s estimated monthly income allowance is less than the maximum, use the estimated monthly income allowance of $1885 in Step 6.
6. Subtract the community spouse’s total monthly income (Step 1) from the monthly income allowance (Step 5) to determine the community spouse allocation amount.
$1885 monthly income allowance - $1050 total monthly income = $835.
Leo's community spouse allocation from his wife is $835. This amount is used as a deduction on Norma’s LTC income calculation.