LTC Income Calculation (Archive)

The purpose of the long-term care income calculation is to determine a person’s long-term care spenddown or waiver obligation. For help determining whether a client should use an LTC income calculation, see Choosing the Appropriate Income Calculation.

LTC Income Calculation Steps

Income calculation steps for LTC are:

1. Determine the gross earned and unearned monthly income for the client only. Do not average income. See LTC Income for further instructions on calculating the total monthly income.

2. Deduct allowances and deductions in the order listed to arrive at the LTC spenddown or waiver obligation.

a. LTC Excluded Income.

b. Special Personal Allowance.

See LTC Income for details on this allowance.

c. LTC Medicare Premium Deduction.

d. LTC Needs Allowance.

There are four types of allowance that may be used as a deduction which are dependent on the client’s program and/or living situation.

e. LTC Guardianship Fees.

f. LTC Community Spouse Allocation.

g. LTC Court-Ordered Child Support.

h. Family Allocation.

i. Health Insurance Premiums.

j. Medical Expenses.

k. Special SSI Deduction.

3. Results greater than $0 indicate the client has an LTC Spenddown and Waiver Obligation.

Note:  Clients with $0 income remaining after calculating income do not have a cost obligation for eligibility.

Top of Page