Obsolete 1216 - 331-1 The DAC Income Test

Policy Effective May 1, 2006 - November 30, 2016

Contact DWS Program Specialist for previous policy

1. Do not include the amount of the Childhood Disability Benefit.  If the client’s only income is the Childhood Disability Benefit, the client is income eligible for protected Medicaid as a DAC.

2. Unearned Income:

   1. Subtract the $20 general income disregard from the client’s unearned income, other than VA needs based payments.

   2. Add the result to the amount of any VA needs based payments. The result is the countable unearned income.

3. Earned Income:

   1. Subtract Impairment related work expenses (409-2 #4)

   2. Subtract any part of the $20 general income disregard not used for unearned income.

   3. Subtract $65 from the client’s gross earned income.

   4. Subtract ½ of the result of 3C from that result.

   5. The result from 3D is the countable earned income.

4. Add the countable unearned income from 2B to the countable earned income from 3E.  The result is the countable income.

5. Compare the countable income from 4 to the SSI payment for one person.

   1. If the countable income is equal to or less than the SSI payment for one person, the client is income eligible for protected Medicaid as a DAC.

   2. If the countable income is more than the SSI payment for one person, the client is not eligible for protected Medicaid as a DAC.  Determine eligibility for other Medicaid programs.