7) MAGI 5% Disregard – Caretaker Relative #1
In October 2020, a married couple apply for themselves.They have six-year-old twin children who get SSI-Cash and are already receiving AHCCCS MA.
The parents are filing a joint return and claiming the children. Both parents are under age 65 and do not have Medicare. The family’s counted monthly income is $2,373.00. The parents meet the non-financial requirements for two MAGI programs, the Caretaker Relative and the Adult programs.
The budget group size is four people for both parents. The household income of $2,373.00 is first compared to the income limit for the Caretaker Relative program for a family of four, which is $2,315.00. The parents are over the income limit for the Caretaker Relative program. Since they also meet the requirements for the Adult program, the MAGI 5% disregard is not applied to the income test for Caretaker Relative. The household income is then compared to the income limit for the Adult program for a family of four, which is $2,904.00. The household income is under the Adult limit and the parents qualify for the Adult program. The 5% MAGI Disregard is not applied.