State of Wisconsin Department of Health Services

HISTORY

The policy on this page is from a previous version of the handbook. 

20-03 Version of 15.1 Income Introduction

15.1.1 Elderly, Blind, or Disabled Fiscal Test Group

An EBDElderly, Blind, or Disabled fiscal test group (FTG) usually includes the individual who is non-financially eligible for Medicaid and anyone who lives with him or her and who is legally responsible for him or her. EBD fiscal test groups are groups of one or two. Spouses who live together are in each other’s FTG. This means that the income and assets of both spouses are counted when determining Medicaid eligibility for either or both spouses. The FTG size for this living arrangement is two.

There are some exceptions to this Policy:

• Blind or disabled minors (or dependent 18-year-olds): A blind or disabled minorA minor is a person less than age 18. (or dependent 18-year-old ) living with his or her parents would be a one-person FTG. Special instructions for deeming parental income to the disabled minor are described in Section 15.1.2 Special Financial Tests for Disabled Minors
• Children and young adults who are applying for HCBW Medicaid for enrollment into the CLTS waiver program are a one-person FTG and have eligibility determined under the policy in Section 37.3 HCBW Medicaid CARES Processing for the CLTS Waiver Program.
• SSI recipients: If one spouse is applying for EBD Medicaid and the other spouse is an SSI recipient, the SSI recipient spouse is not included in the applicant's FTG. For this situation, you would have a one-person FTG when determining the Medicaid eligibility of the non-SSI spouse.
• Medicaid Purchase Plan (MAPP): Children are included in the FTG of a MAPP applicant or member, so the FTG for this program could be greater than two people. See Section 26.2.2 Fiscal Test Group for more information.

An individual applying for Long-Term Care Medicaid, including Institutional Medicaid, HCBWHome and Community-Based Waiver, Family Care, PACEProgram of All-Inclusive Care for the Elderly, Partnership, or IRISInclude, Respect, I Self-Direct. A Medicaid waiver program., would be a one-person fiscal group. If the individual is married, refer to Section 18.1 Spousal Impoverishment Introduction for special instructions regarding spousal impoverishment procedures.

15.1.2 Special Financial Tests for Disabled Minors

A blind or disabled minor (or dependent 18-year-old) must have his or her Medicaid eligibility determined according to the following special procedures. This process deems parental income to the disabled minor. The deemed parental income is added to the disabled minor’s income when determining the disabled minor’s financial eligibility for EBD Medicaid.

The disabled minor is a separate fiscal group of one. A child who is an SSI recipient is not considered to be a household member and therefore not included in any of the following procedures. The following procedures are also different from those used to test for HCBW Medicaid eligibility for the Children’s Long-Term Support Waiver Program (see Section 37.3 HCBW Medicaid CARES Processing for the CLTS Waiver Program).

An ineligible child in this section is a minor child who is neither disabled nor blind.

An eligible child in this section is a minor child who is disabled or blind or both.

Calculate the countable income of everyone in the household using the following six steps.

1. For each ineligible child in the household:
   1. Subtract the ineligible child's unearned and earned income from the EBD Deeming Amount to an Ineligible Minor (see Section 39.4.2 Elderly, Blind, or Disabled Deductions and Allowances).
   2. The remainder is the amount to be allocated to the ineligible child from parental gross unearned income. Subtract this amount from the parental unearned income.
      
      If there is not enough parental unearned income to allocate the whole amount, allocate the rest from parental gross earned income.
2. If there was any remaining parental unearned income from step 1(b), subtract $20, the general income exclusion, from the amount.
   
   If there is not enough unearned income to subtract the full $20, subtract the rest of the $20 from the parental earned income.
3. Starting from what is left of the parental earned income, first subtract $65, and then subtract half of the remainder.
4. To this remaining parental earned income, add any parental unearned income remaining after steps 1(b). and 2. This is the total parental income.
5. From the total parental income, subtract the appropriate Parental Living Allowance (see Section 39.4.2 Elderly, Blind, or Disabled Deductions and Allowances). Use the amount for an individual if one parent lives in the home or the amount for a couple if both parents, or one parent and a spouse, live in the household.
   
   The remainder is the total parental income to be deemed to the eligible child(ren).
6. Divide the parental deemed income equally among the eligible children. Use the EBD-Related Determination Worksheet (Worksheet 06) (see Section 40.1 Worksheets Table of Contents) to calculate each child's Medicaid eligibility.

Example 1:

Mr. and Mrs. Darwin have two children. Matthew, eight years old, is disabled, and is the eligible child. Jenny, 10 years old, is the ineligible child. Neither child has income. The Darwins have no unearned income. Parental earned income is $3,006 a month. EBD deeming amount to an ineligible minor (see Section 39.4.2 Elderly, Blind, or Disabled Deductions and Allowances) = -$392 ------------- Remaining earned income $2,614 General income exclusion -$20 Remaining earned income $2,594 Earned income exclusion -$65 ------------- Remaining earned income $2,529 1/2 remaining earned income -$1,264.50 ------------- Parental living allowance -$1,157 ------------- Income deemed to eligible child = $107.50

 

Example 2:

Lawrence has three children. One is disabled. None have any income. His monthly income is $2,050 earned and $402 unearned. Unearned income = $402.00 EBD Deeming Amount for two ineligible minors (see Section 39.4.2 Elderly, Blind, or Disabled Deductions and Allowances) -$784.00 After subtracting this from unearned income, there is $382 remaining allocation that can be applied to earned income. Lawrence's earned income $2,050 Excess allocation -$382 -------------- Remaining earned income $1,668 General income exclusion -$20 ------------- Remainder $1,648 Earned income exclusion -$65 Remainder $1,583 1/2 remaining earned income -$791.50 Parental living allowance -$771 ------------- Income deemed to eligible child $20.50

15.1.3 Income

See Section 39.4 Elderly, Blind, or Disabled Assets and Income Tables for EBD income limits. See Section 39.5 Federal Poverty Level Table for all other Medicaid income limits. Chapters for each type of Medicaid explain how to determine the income that you compare to the income limits.

See BadgerCare Plus Eligibility Handbook Section 43.2 Financial Test for TBTuberculosis-Related income limits.

15.1.4 Supplemental Security Income-Related Test

A fiscal group with income that does not exceed the categorically needy income limit passes the Medicaid SSI-related categorically needy income test (see Section 24.1 SSI-Related Medicaid Introduction for more information).

If an SSI-related fiscal group’s income exceeds the categorically needy income limit, their income is then compared to a medically needy limit, which is found in Section 39.4 Elderly, Blind, or Disabled Assets and Income Tables. If the fiscal group’s income is between the categorically needy limit and the medically needy limit, the group passes the Medicaid SSI-related medically needy income test.

If an EBD fiscal group fails the medically needy income test because their net income exceeds the medically needy income limit, they can still qualify for Medicaid if they can meet a Medicaid deductible. Refer to Section 24.2 Medicaid Deductible Introduction for more information about Medicaid deductibles and to Section 24.5 Calculating the Deductible for instructions on how to calculate a Medicaid deductible.

15.1.5 Availability

General Rules:

1. Only count income when it is available.
2. Some income is disregarded (see Section 15.3 Exempt and Disregarded Income).
3. Always use gross income when calculating income.
4. Some income, even though it is unavailable income, must be counted (e.g., garnishments).

Income is available if all the following are true:

1. It is actually available.
2. The person has a legal interest in it.
3. The person has the legal ability to make it available for support and maintenance.

Note:

Available income can include more than a person actually receives if amounts are withheld from earned or unearned income because of a garnishment or to pay a debt or any other legal obligation.

Examples of income sources that someone can make available are Social Security and unemployment compensation. This includes income increases such as COLAcost-of-living adjustment. An increase in income to compensate for inflation.s.

When it is known that a member of the assistance group is eligible for some sort of income or an increased amount of income:

1. Count the income if the amount is known. Count it as if the person is receiving it.
2. Ignore the income if the amount is not known.

Example 3:

Ms. M. turned 62 years old and is entitled to Social Security benefits of $900. However, she opted to wait until she turns 65 years old to start collecting her benefits. Since she is entitled to $900 at 62 years old, $900 is considered available income.

Income is unavailable when it will not be available for 31 days or more. The person must document the following:

• It will not be available for 31 days or more.
• They have started the process to make it available.

Unavailability is usually documented by a letter from an agency stating when the person will receive the benefit. Thus, if he or she has just applied for benefits, do not add it to his or her income yet. The income is not ignored; it is only suspended until it becomes available.

15.1.6 Countable Income

Countable income is the prospective gross monthly amount used in the eligibility determination and post-eligibility calculations.

15.1.6.1 Migrant Workers

Annualize migrant workers income (see Chapter 31 Migrant Workers).

This page last updated in Release Number: 20-03
Release Date: 08/03/2020
Effective Date: 09/01/2019

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The information concerning the Medicaid program provided in this handbook release is published in accordance with: Titles XI and XIX of the Social Security Act; Parts 430 through 481 of Title 42 of the Code of Federal Regulations; Chapters 46 and 49 of the Wisconsin Statutes; and Chapters HA 3, DHS 2, 10 and 101 through 109 of the Wisconsin Administrative Code.

Notice: The content within this manual is the sole responsibility of the State of Wisconsin's Department of Health Services (DHS). This site will link to sites outside of DHS where appropriate. DHS is in no way responsible for the content of sites outside of DHS.

Publication Number: P-10030