Medicaid Policy
Medicaid Policy
Previous Policy (431-2 was previously found in section 409-2 until November 1, 2021)
A. $20 General Income Disregard
1. Deduct the balance of the $20 general income disregard remaining after allowing this deduction from unearned income.
2. Deduct this from earned income before allowing any earned income deductions. (See Sec. 431-5.)
3. Remember that the $20 general income disregard cannot be deducted from needs-based VA payments.
B. $65 and ½ Deduction
1. Combine earned income of spouses, or of parents when deeming to an eligible child. When deeming from an ineligible spouse or parents, refer to Sec. 410-2 or 410-3.
2. Deduct $65 from the total earnings used to determine eligibility.
3. Then deduct one half of the income that remains.
4. It does not matter if more than one person's earnings are used to determine eligibility.
5. This earned income deduction is deducted from earned income only.
C. Impairment-Related Work Expenses
1. Deduct monthly expenses the member pays for services and items related to the individual's disability when those expenses are necessary for the individual to work.
2. Do not allow a deduction for any expenses that are covered by Medicaid or any third party.
3. Do not allow a deduction for any expenses paid by anyone other than the member. (Examples of these work expenses: transportation for a disabled member who cannot use public transportation because of his impairment; medications not covered by Medicaid or any third party; wheelchairs, respirators, braces, typing aids, electronic visual aids, Braille devices, telecommunications devices for the deaf, etc.. which are not covered by Medicaid or any third party.)