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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 441 Deeming of Incomefrom Ineligible Spouse

Consider a couple to be married if they are: 1. Legally married under State law or 2. Either determined to be the spouse of a Title II (Social Security) recipient or 3. Living together and holding out to the community in which they live as a married couple NOTE: A married couple no longer living together as spouses will be considered as individuals the month after they separate. An ineligible spouse is one of the couple as defined above that is not receiving medical assistance as an individual who is aged, blind, or as an individual with a disability. Deeming of Income from Ineligible Spouse: 1. Determine the applicant’s countable income allowing the SSI exclusions at MS E-450. If countable income is equal to or exceeds the individual SSI Standard Payment Amount (SPA) for the SSI/COLA groups or Medicare Savings Program (MSP) Standard for the MSP groups, the applicant is ineligible. If countable income is less than the individual SPA or MSP Standard, income will be deemed from the ineligible spouse.  NOTE: For spouse-to-spouse deeming to apply, the applicant or recipient must be eligible based on his or her own income. 2. Determine the total income of the ineligible spouse by types, earned and unearned less any excluded from deeming. Refer to MS E-446 to determine income excluded from deeming. 3. From the ineligible spouse’s income, a living allowance (refer to Appendix S) is deducted for each ineligible child (refer to Glossary) in the home. Income of the child is used to reduce this allowance unless it is excluded as student earned income. Refer to MS E-446 #10. The living allowance is deducted from the unearned income first and any unused balance is then deducted from earned income. Total the remaining income. 4. If the ineligible spouse’s remaining income is equal to or less than his living allowance, there is no income to be deemed. The applicant is income eligible. 5. If the ineligible spouse’s remaining income exceeds his living allowance, the remaining income by type will be totaled with the applicant’s gross earned and unearned income amounts.