Medicaid Policy
Medicaid Policy
Previous Policy (410-3 were previously found in 427-3 until November 1, 2021)
A. Introduction
To determine eligibility for aged, blind or disabled Medicaid programs, and Medicare Cost-Sharing programs, you must deem income from the ineligible parents to the eligible child or eligible children in the household. Deeming applies to a biological or adoptive parent and the spouse of a biological or adoptive parent who also lives in the household with an eligible child.
B. Special Considerations for Parental Deeming
1. Deeming from two parents:
If the child lives with both parents (biological/adoptive), and deeming applies to both parents (410-1), combine their income for the deeming calculation and allow the parental allocation for a couple. This applies to both married parents and unmarried parents.
2. When an eligible child lives with a parent and a step-parent, deem income from both the parent and step-parent.
3. Deeming from more than two parents:
a. If the child lives with both biological or adoptive parents who are not married to each other, and
b. One, or both, of the parents are married and the step-parent also lives in the household, then
c. Do a separate deeming calculation for each parent and that parent's spouse, if applicable.
d. At the end, combine the deemable income determined from each parent and count it as income to the eligible child.
4. If an eligible child lives only with a step-parent and the child’s (biological/adoptive) parent has permanently left the household, do not deem income from the step-parent.
C. Determine Parents' Deemed Income
Determine the amount of deemable parental income as follows. Do not count income excluded under 417, 419 or 421 for aged, blind and disabled medical programs for the parents, or for an ineligible child. When a parent receives past-due child support payments or an ineligible child receives child support, the full amount counts as that person's income. Do not deem from Public Income Maintenance (PIM) payments described in 410.
1. Add all countable unearned income received by the parents.
2. Subtract an allocation for each ineligible child.
a. Do not subtract an allocation for any child who receives PIM payments.
b. Determine what countable income the ineligible child has.
i. Include the full amount of current child support payments from an absent parent received for that child.
ii. Include the child’s other unearned income.
iii. If the ineligible child has earned income, allow the earned income disregard for a child found in 431-2 each month income is being deemed until the annual maximum has been allowed. Only count earnings in excess of the disregard.
NOTE: If a spenddown is owed but not met in one or more months, this allocation has not effectively been applied. Do not reduce the annual maximum allocation by the ineligible child's earned income from such months.
iv. Combine the countable unearned and countable earned income.
c. Subtract the child's countable income from the Maximum Allocation for Children. (See Table II.) The amount remaining is the amount that can be deducted from the parents’ income.
i. Subtract this first from the parents’ unearned income, if any.
ii. If it cannot all be deducted from unearned income, subtract the rest from the parents’ earned income.
3. Subtract any amounts either parent in the home pays to someone not in the home to comply with court-ordered child support or alimony, including past due amounts. Subtract any amounts collected by ORS or paid directly by the parent.
a. Subtract this first from unearned income.
b. Subtract any remaining amount from earned income.
4. Subtract a $20 General Disregard from the remaining unearned income. Any balance that cannot be subtracted from unearned income may be subtracted from earned income.
5. Add together parents' gross earned income. Do not count earnings excluded in 431-2. Remember not to count any income received by a parent who gets a needs-based VA payment or other PIM payment.
6. Subtract the remaining portions of the allocation for children, $20 general income disregard and child support or alimony payments that cannot be deducted from unearned income. If income only includes earned income, the full amounts of these deductions are subtracted from earnings.
7. Subtract $65 and ½ of the remainder from the earned income.
8. Total remaining unearned and earned income.
9. Subtract the Maximum Allocation for Parents for the number of parents in the home (1 or 2). (See Table II) Do not subtract a parental allocation for any parent who receives PIM payments.
· When deeming from more than 2 parents, combine the results from the separate deeming calculations to get to the total amount of income available to the disabled child or children.
10. Divide the deemable income equally among all disabled children under age 18 in the home. This money is unearned income for the disabled children.