2) Net Income Calculation for Customer and Spouse

The customer and his wife live at home with their two-year-old child. The customer has been on ALTCS six months, when the ALTCS Health Plan notifies the office that he is refusing HCBS. The worker determines ALTCS acute care eligibility using the net test.

The customer gets monthly income of $700.00 Social Security Disability, and his wife works part time and makes $400.00 per month from her job. The child gets $250.00 Social Security Survivor benefits.

The customer’s eligibility is calculated using the net income test as follows:

Step Action 1 Calculate net unearned income: $700.00 (total of the customer’s and the spouse’s counted unearned income) -$0.00 (1/3 child support deduction not applicable) =$700.00 (subtotal) -$20.00 (general income deduction ) =$680.00 (subtotal) +$0.00 (there is no income based on need) =$680.00 (net unearned income) 2 Calculate net earned income: $400.00 (total of the customer’s and the spouse’s counted earned income) -$0.00 (unused portion of the $20.00 general income deduction) -$65.00 (standard work expense deduction) -$0.00 (IRWE deduction) =$335.00 (subtotal of earned income) -$167.50 (½ subtotal of earned income) -$0.00 (blind work expense deduction) =$167.50 (net earned income) 3 Calculate total net income: $680.00 (net unearned income from Step 1 above) +$167.50 (net earned income from Step 2 above) =$847.50 (subtotal of net income) - $142.00 (child allocation amount) =$705.50 (total net income) 4 Compare the result in Step 3 above to $1,491.00 (100% of the FBR for a couple for 2026): Because $705.50 is less than $1,491.00, the customer is income eligible for ALTCS.