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MEDICAL SERVICES POLICY MANUAL,SECTION E E-200 Determining Financial Eligibility Under the MAGI Methodology

E 266 Self Employment Income

to monthly income. Self-employment income may also require an alternative method. MS E-266 contains a more detailed discussion on self-employment income.

E-266 Self-Employment Income MS Manual 08/03/2020 The currentmonthly amount of self-employment earnings is the best estimate ofearned income for future months. The individual’s recent tax data can be used to determine monthly income. If the most recent tax data is not available or does not reflect current income, the individual’s income will be determined by other means as determined appropriate by the eligibility worker, such as sales receipts, business records, etc. Costs directly related to producing self-employment income are subtracted from the annual gross income before the monthly earnings are included in the budget. See Schedule C in Appendix Q for all allowable costs associated with self-employment income. After allowable deductions from annual income, the remainder is then divided by 12 to determine the monthly income.

E-267 Comparing Income to Income Standard for Appropriate Household Size MS Manual 08/01/14 After the Medicaid household composition, size and countable current income have been established, the Medicaid household’s countable income will be compared to the household size income standard for the appropriate eligibility group to determine whether an individual is income eligible. Income eligibility will first be determined according to the eligibility group the individual falls into with the lowest income standard. For example, eligibility for a parent would first be determined in the Parent/Caretaker Relative group before a group with a higher income standard.

E-268 The 5% Gross IncomeDisregard MS Manual 08/01/18 Each individual will be allowed a general gross income disregard in the amountof five percent (5%) of the Federal Poverty Level for the household size. The five percent (5%) disregard will be applied only to the Families and Individuals category with