431-3 Earned Income Disregards for Family Medically Needy Medicaid

Effective Date: November 1, 2021

Previous Policy (431-3 was previously found in section 409-3 until November 1, 2021)

Disregards for non-MAGI-based family, child and pregnant woman medically needy programs.

These earned income disregards apply to non-MAGI-based medically needy Family, Child and Pregnant Woman programs.

Subtract the appropriate disregards below from the countable gross earned income of each employed individual in the following order:

1. $90 Work Allowance:

Subtract up to $90 per month from each employed person's earned income. If the person has less than $90 earned income, count no earned income for that person.

2. $30 and 1/3 Disregard:

This disregard is only available to adults who meet the US Citizenship or Qualified non-citizen criteria. (See 205-1 and 205-2)

Deduct the first $30 and 1/3 of the remaining earned income from each employed person's income using the following criteria:

a. Allow the disregard for any non-MAGI-based family related medical program if the wage earner has received Utah MAGI-based Parent/Caretaker Relative coverage in one of the previous 4 months and has not exhausted the $30 and 1/3 as defined in 2.b.

b. Allow the disregard for 4 consecutive months.

i. A person who has received four consecutive months of the $30 and 1/3 disregard is not eligible to receive it again unless at least 12 months has passed since their last received family related Medicaid (MAGI-based or non-MAGI-based) or was deemed on a MAGI-based or non-MAGI-based family related Medicaid program.

ii. Count any month in which any of the individual's earned income is disregarded by the $30 and 1/3 disregard. Do not count a month when the $90 work allowance covers all earned income OR the $30 and 1/3 disregard was received in another state.

iii. The $30 and 1/3 disregard will be allowed using the same rules for all non-MAGI-based family related Medicaid programs. The $30 and 1/3 disregard will be allowed only for four consecutive months regardless of which non-MAGI-based family related Medicaid program the household receives.

iv. If the wage earner does not receive the $30 and 1/3 disregard for four consecutive months, the count will start over. However, to restart the disregard the wage earner must have received MAGI-based Parent/Caretaker Relative coverage in one of the previous 4 months.

c. $30 Disregard

An individual is eligible to receive the $30 disregard for 8 consecutive calendar months after they have received the fourth consecutive month of the $30 and 1/3 disregard. Count all months including months that the person does not receive Medicaid or does not have earnings. The wage earner does not have to meet the requirement of having received Utah Parent/Caretaker Relative coverage in one of the previous four months to receive this disregard.

3. Cost of Child Care or the Care of an Incapacitated Adult Necessary for Employment

For non-MAGI-based family, child and pregnant woman coverage groups, deduct the monthly amount paid for the care of each dependent child or incapacitated adult who is included in the Medicaid household size up to the maximums listed on table below. The need for care for an adult must be verified by a medical professional.

Employment	Age	Maximum Deduction
Full Time*	Under age 2 yrs	$200.00 per month per child
Full Time*	Age 2 and older	$175.00 per month per child or incapacitated adult
Part Time	Under age 2 yrs	$160.00 per month per child
Part Time	Age 2 and older	$140.00 per month per child or incapacitated adult

*Full-Time Employment means an average of 100 or more hours of work per month or an average of 23 hours per week.