3) Calculation for Customer Child and Ineligible Parent

The customer is a 2-year-old child with a developmental disability. She lives with her parents and two minor siblings, aged 5 and 8. She has been on ALTCS benefits for seven months when the ALTCS Health Plan reports that the parents are refusing HCBS services for the customer. The worker determines eligibility for ALTCS acute care using the net test.

None of the children get any income. The customer’s father works full-time and makes $4,000.00 per month. Her mother gets a $400.00 pension payment. The customer’s parents are not receiving or applying for SSI or any AHCCCS benefits for themselves.

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

1st Process: Determine Child Allocations Step Action 1 Add the child allocation amounts for each other child in the home other than the customer child (see MA609B.8 ): $497.00 (child allocation for 5-year-old sibling) +$497.00 (child allocation for 8-year-old sibling) = $994.00 (total child allocation) 2nd Process: Deeming Calculation Step Action 2 Subtract the total child allocation from Step 1 from the ineligible parents’ unearned income: $400.00 (total of the ineligible parents’ counted unearned income) - $994.00 (total child allocations from Step 1) = -$594.00 (remaining unused child allocations) NOTE Since the child allocation amount is higher than the unearned income, the remaining unearned income amount to be deemed from the parents is $0. The remaining child allocation is carried over to the net earned income calculation. 3 Calculate ineligible parents’ net unearned income: $0.00 (remaining unearned income amount from Step 2) -$20.00 (general income deduction) = -$20.00 (remaining general income deduction) NOTE Since the general income deduction is higher than the remaining unearned income, the unearned income amount to be deemed from the parents is $0. The remaining general income deduction amount is carried over to the net earned income calculation. 4 Calculate ineligible parents’ net earned income: $4,000.00 (the parent's total earned income) - $0.00 (student earned income deductions) - $594.00 (remaining unused child allocation from Step 2) - $20.00 (remaining unused general income deduction amount) - $65.00 (standard income deduction) - $0.00 (IRWE deduction) = $3,321.00 (subtotal of earned income) - $1,660.50 (½ subtotal of earned income) = $1,660.50 (subtotal of earned income) -$0.00 (blind work expense deduction) = $1,660.50 (total net earned income) 5 Calculate total net income as follows: $0.00 (total net unearned income from Step 3) +$1,660.50 (total net earned income from Step 4) =$1,660.50 (total net income) 6 Calculate the deemed income from the ineligible parents: $1,660.50 (total net income from Step 5) - $1,491.00 (Couple FBR) = $169.50 (amount of deemed income from parents) 3rd Process: Net Income Test Calculation Step Action 7 Calculate the net unearned income: $0.00 (customer child’s own income) + $169.50 (deemed income from parents from Step 6) - $0.00 (1/3 child support deduction – does not apply) - $20.00 (general income deduction) = $149.50 (subtotal unearned income) + $0.00 (no needs based assistance payments) = $149.50 (net unearned income) 8 Calculate the net earned income: $0.00 (customer child’s counted earned income) - $0.00 (student earned income deduction is not applicable) - $0.00 (unused remaining general income deduction from Step 7) - $0.00 (standard work expense deduction) - $0.00 (IRWE deduction) - $0.00 (½ subtotal of earned income) - $0.00 (Blind Work Expenses) = $0.00 (net earned income) 9 Calculate total net income: $149.50 (net unearned income from Step 7) + $0.00 (net earned income from Step 8) - $0.00 (child allocation amount for the customer child’s children) = $149.50 (total net income) 10 Compare the total net income from Step 9 to 100% of the FBR. In 2025, 100% FBR = $994.00. Because $149.50 is less than $994.00, the customer is income eligible for ALTCS using the net test.