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Title 8: Medicaid Page 9 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Income Policies for Non-MAGI-Related Coverage… Revised May 22, 2026 Deeming Non-MAGI-Related Income

Mr. M has applied for Medicaid. He receives $1,200 in Social Security disability benefits and Medicare. Mrs. M receives a Social Security benefit of $400. They have two children, Y and Z. Each child receives $150 Social Security benefits. If Mr. M’s own income makes him ineligible for SSI, it’s not necessary to consider Mrs. M’s income, except for Medically Needy, QMB, SLMB, E- SLMB, or QDWP. $1,200.00 - 20.00 $1,180.00 Mr. M’s unearned income General income deduction

$ 994.00 - 1,180.00 $ .00 SSI benefit for one person Mr. M’s countable income

Mr. M’s income creates ineligibility for SSI. The worker moves to the deeming process for SSI-related Medically Needy: $ 400.00 - 347.00 - 347.00 $ .00 Mrs. M’s unearned income Allocation for ineligible child X ($497 - $150 = $347) Allocation for ineligible child Y ($497 - $150 = $347) Mrs. M’s countable unearned income $0 does not exceed $497. There is no income available to deem to Mr. M. Mr. M’s countable income of $1,180 ($1,200 - 20) is compared to the Medically Needy income level (MNIL) for a household size of one to determine the spenddown amount, and to 100% of the federal poverty level for a household size of one to determine QMB eligibility. Deeming from an Ineligible Parent to an Eligible Child Legal reference: 20 CFR 416.1160, 20 CFR 416.1165 When a child applicant is living in the same household with an ineligible parent, deem the ineligible parent’s income when determining eligibility. Deem a stepparent’s income to the child if the natural parent lives in the house with the stepparent and child. If the child lives with a stepparent only, do not deem the stepparent’s income to the child, but consider any food and shelter the stepparent provides to the child as in-kind support and maintenance. See In-Kind Support and Maintenance (ISM).