Medicaid Policy
Medicaid Policy
Previous Policy (415-5 was previously found in 403-6 until November 1, 2021)
A. MAGI-based programs
1. Child support payments do not count as income to determine eligibility for MAGI-based programs. It does not matter if the payments are current or for arrearages (440-4).
2. Alimony payments:
a. Effective January 1, 2019. Alimony payments do not count as income to the individual receiving payments if the support agreement was entered into on or after January 1, 2019.
b. Alimony payments made under agreements entered into before January 1, 2019 continue to count as taxable income for the MAGI based income methodology, with one exception.
§ If a prior support agreement is modified on or after January 1, 2019 to specifically exclude the alimony payments from taxable income, then do not count the payments as income. Stop counting the payments beginning the month after the change is made to the support agreement.
c. The person paying alimony payments cannot deduct them from gross income if the support agreement was created or modified on or after January 1, 2019.
· Alimony can be deducted from gross income when the support agreement was created before January 1, 2019, and has not been modified.
B. General Non-MAGI Requirements
Child Support: Child support payments may be countable income to the parent or to the child even if the child support is paid voluntarily. It does not matter if the child support is court-ordered or not.
1. Whose Income Is It?
a. Current child support is countable income for the child for whom the payment is made. If ORS is collecting current child support and sending it to the custodial parent, it is counted as current support even if it is mailed late by ORS.
b. Past-due child support or "arrearages" are countable income for the parent, or guardian, receiving the payment. A child support "arrearage" is a payment of child support that was not paid on time by the non-custodial parent. It is similar to paying off a past-due debt. ORS may be collecting both current child support and arrearage payments.
2. If there is more than one child for whom the payment is made, the amount is divided equally among the children unless a court order indicates a different division.
Alimony: Alimony payments are countable income for non-MAGI programs to the individual receiving the payments. It does not matter when the support agreement was created.
C. Aged, Blind, and Disabled Medicaid
1. Child Support Disregard
a. To Determine Eligibility of the Disabled Child
Disregard one-third (1/3) of all child support payments received by a disabled child. The one-third disregard applies to cash and to countable in-kind child support. (See #2.)
If the disabled child is an adult, or becomes emancipated before reaching age 18, the one-third disregard for current child support payments is not allowed.
b. To Determine Eligibility for a Parent
The child support disregard does not apply to past-due child support payments received by a parent. Count the full amount received as income to the parent.
c. To Determine the Allocation for a Non-Disabled Sibling
The child support disregard does not apply to a non-disabled child in the home when determining the amount of an allocation for dependent children for deeming purposes. Count the full amount of current child support payments received for a non-disabled child as that child's income (410-3).
2. In-Kind Child Support Payments
Child support paid in-kind is countable income only if the payment is made in food or shelter. Otherwise, the in-kind payment is not countable income.
3. Child Does Not Live with the Parent
If the child, or adult child, for whom current payments are being made is not living with the parent receiving the payment, the child support is still counted as income of the child.
If the child or adult child no longer lives with the parent who receives a past-due child support payment, count only the portion of the child support that the child actually receives as income to the child.
D. Medically Needy Family, Child and Pregnant Woman Medicaid
1. Child Support Disregard
a. Current Support Payments
Disregard the first $50 of the total of all current child support payments received by the household in a month.
b. Past Due Support Payments
The child support disregard does not apply to past-due child support payments received by a parent. Count the full amount received as income to the parent.
2. Child Not in Home
When the child for whom current payments are being paid is not living in the home of the parent receiving the payment, decide if that parent sends any of the child support to the child (or the person caring for the child, depending on the circumstances.) Count only what the child, or the child's caregiver, actually receives as income to the child. If the parent receiving the payment does not send all of the income to the child or use it all for the child's needs, count the amount the parent keeps as income to the parent.
3. Alimony payments
Count alimony payments as income to the individual who receives them.
E. Children Under 18 in Medical Institutions or Receiving HCB Waiver Services in Group Homes
1. Parents are required to pay child support to ORS (227-1) when:
a. Their children are placed in a Medicaid 24-hour out-of-home care program, and
b. A court order or an ORS administrative order requires child support payments.
2. If a divorce decree or other court order does not exist, ORS may establish an administrative order. ORS may also establish an administrative order for married parents if their children are placed in 24-hour out of home care.
Therefore, the child will not receive child support, with the possible exception of personal needs. Do not count any child support paid to ORS as income to the child.
3. Medicaid 24-hour out-of-home care programs include:
a. Nursing Homes.
b. The Utah State Developmental Center.
c. The Utah State Hospital.
d. Medical institutions or HCB waiver programs requirement 24-hour out-of-home care.
4. ORS has a computer match that identifies these children. ORS will be responsible to collect child support for all months the child meets Medicaid institutional residence criteria.
5. If the child has no income or insufficient income to provide the $45 personal needs allowance, ORS will allow the parent to keep up to $45 to send to the child to cover personal needs. This amount is counted as child support income, but is then exempted as a personal needs allowance.