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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 442 Deeming of Incomefrom Ineligible Parent(s) to Child

6. Treat the two totals of income, earned and unearned, as you would for an eligible couple. The SSI exclusions at MS E-450 are deducted and the remaining earned and unearned income totaled to arrive at countable income. 7. Compare the countable income after deeming to the appropriate SSI SPA or MSP Standard for a couple. If the countable income is less than the couple’s SPA or MSP Standard, the applicant is eligible. If the countable income is equal to or greater than the couple’s SPA or MSP Standard, the applicant is ineligible.

Deeming of Income from Ineligible Parent(s) to Child MS Manual 07/01/20 For purposes of deeming, a stepparent’s needs and income will be disregarded. 1. Determine the gross monthly income of the ineligible parents(s) by type, earned and unearned less income excluded from deeming. Refer to MS E-446 to determine income excluded from deeming. 2. From the ineligible parent(s)’s income, deduct a living allowance for each ineligible child in the home (i.e., those not receiving TEA cash or SSI as a blind child or child with a disability). Any 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 unearned income first. Any unused balance is then deducted from earned income. 3. After deduction of living allowance(s) from income, deduct SSI exclusions. (MS E-450). 4. Total remaining earned and unearned income and deduct a living allowance for the ineligible parent(s) equal to the SSI standard payment amount (SPA). (Appendix S). 5. Any remaining income (if any) is deemed to the child as unearned income. It is subject to the SSI exclusions at MS E-450. 6. If parental income is deemed to more thanone eligible child, prorate the deemed income equally to each child.

Deeming of Income from a Parent Who Would Be Eligible Except for Excess Deemed Income to an Eligible Child MS Manual 07/01/20