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MEDICAL SERVICES POLICY MANUAL,SECTION O O-500 SSI Related Treatment of Income (AABD-MN) O 532 Deeming of Income from Ineligible Parent(s) to a Child Who is Blind or Has a Disability

vs. the couple’s SPA eligibility (Step 5) may be considered for Medically Needy Spend Down. To illustrate: a. If countable income is under the 1 person SPA and under the 2 person SPA - Refer to SSA.  NOTE:For individuals who allege a disability, refer to MS F-120 before referring to SSA. If MRT will make the disability determination, do not refer to SSA, consider AD- MN. b. If countable income is under the 1 person SPA and over the 2 person SPA - Consider MN-SD c. If countable income is overthe 1 person SPA and under the 2 person SPA - Consider MN-SD d. If countable income is overthe 1 person SPA and over the 2 person SPA - Consider MN-SD 6. To determine Medically Needy - SD liability, the countable income will be compared to the two person MNIL. The excess over the two person MNIL is the applicant’s Spend Down liability.

Deeming of Income from Ineligible Parent(s) to a Child Who is Blind or Has a Disability MS Manual 01/01/14 For purposes of income deeming, a stepparent living in the home with an eligible child is not considered the same as a parent. Do not deem a stepparent’s income. 1. Determine the gross monthly income of the ineligible parent(s) by type, earned and unearned less income excluded from deeming (Refer to MS O-535 to determine income excluded from deeming). 2. From the ineligible parent(s)’ income, deduct a living allowance for each ineligible child in the home (i.e., those not receiving TEA cash or SSI as a child who is blind or has a disability). Any income of the child is used to reduce this allowance unless it is excluded as student earned income. Refer to MS O-535 #10 to determine whether any of the student earned income is used to reduce the living allowance. The living allowance is deducted from unearned income first, and any unused balance is then deducted from earned income.