Medicaid Policy                                                                 

431-4 Earned Income Deductions for Waiver and Long-term Care

Effective Date: November 1, 2021

Previous Policy (431-4 was previously found in section 409-5 until November 1, 2021)

Individuals living in medical institutions can receive a deduction from earned income.  The earned income deduction is deducted from earned income only.  

1.           General Income Exclusion

Institutionalized members are not allowed the $20 general disregard.  Therefore, do not deduct any part of the general income deduction from the earned income of institutionalized individuals.

2.           Earned Income Deduction for Institutionalized members

Allow an earned income deduction from the gross earned income of members who are residents of medical institutions.  Do not deduct the earned income deduction from unearned income even if the earned income is less than the deduction.

See Table II-A for the earned income deductions for institutionalized members.