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Chapter: 2400 Budgeting Income Program: RAP 50 2460.0305 Individuals Ineligible - Standard Deduction (RAP) For RAP, the following individuals are not eligible to receive this disregard:

1. ineligible noncitizens, or 2. individuals whose needs are excluded because of welfare enumeration. 2460.0318 Individuals Ineligible for $200 and 1/2 Disregard (RAP) Refugee Assistance Program coverage groups are not eligible for the $200 plus one half earned income disregard, but remain eligible for the $90 standard earned income disregard.

Deeming budgets will continue to be computed according to old policy. The $200 and one half earned income disregard will not be applied in the deeming budget. 2460.0325 Work Related Cost of Care Disregards (RAP) Medicaid recipients with child care costs will be allowed the work related cost of care disregard in the eligibility budget. The child care cost must be verified only if questionable.

Only the amount of the out-of-pocket expense may be used as a disregard in the Medicaid budget. This is the amount the individual pays; i.e., the parent fee and/or any amount that exceeds the market rate. 2460.0326 Cost of Care Maximums (RAP) The maximum allowable disregard for the work related cost of child or incapacitated adult care is up to $200 per child under age two; or up to $175 per child or incapacitated adult age two or older.

In the month following the month the child turns age two, the maximum cost of care disregard becomes $175 per child. If the child turns age two on the first of a month, the $175 maximum disregard applies in the month of the child's birthday. The cost of care disregard is budgeted as billed (an average of the weekly expense x 4.3 conversion factor is used). However, no child or incapacitated adult care amount paid by vendor payment is allowed as a deduction.

The formula is: (Balance after Standard Earned Income Disregard) - Appropriate Earned Income Disregard - (As Billed Cost of Care per Child or Incapacitated Adult up to the Maximum) = (Countable Income). 2460.0327 Eligibility for Child Care Disregard (RAP) In order to qualify for the disregard, the child/incapacitated adult care must be necessary for the parent/caretaker relative to maintain employment. Additionally, the child in need of care must be under age 13, or physically or mentally incapable of caring for himself, or be under court supervision. Verification of the need for care must be obtained only when questionable.

For Refugee Assistance Program (RAP), CIC and Family-Related Medicaid (MFAM) (under $10 and opt not to receive), the cost of care shall be deducted only for the care of dependent children in the assistance group (AG). This includes a child who would be an assistance group member (or standard filing unit (SFU) for MFAM) except for the receipt of Supplemental Security Income (SSI). For all other MFAM groups, the child does not have to be in the AG, but must be a member of the SFU.

The cost of care incurred must be paid to an individual not in the AG/SFU.