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Title 8: Medicaid Page 11 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
Client S, age 17, was living with her parents and two brothers before entering an RCF. She has no income of her own. Her father has earnings of $1,270 per month. Her brothers and mother have no income. The computation is as follows:
$1,270.00
- 994.00
$ 276.00
- 20.00
$ 256.00
- 65.00
$ 191.00
- 95.50
$ 95.50
- 1,491.00
$ .00 Father’s earned income Allocation for ineligible children (2 x 497)
General income deduction
Work expense deduction
1/2 remainder
Parental exclusion Deemed income to Client S Countable income of zero is less than the SSI payment standard for one person. As Client S has no income of her own, income eligibility exists for the retroactive period if she meets a category of eligibility for the retroactive period, as defined in 8-A, Definitions. Types of Non-MAGI-Related Income Income is either countable or excluded from consideration. “Countable income,” which is the gross income expected to be received for the month under consideration, is either earned or unearned. The following section is an alphabetical listing of various types of payments that explains how these payments are used in determining eligibility for non-MAGI-related coverage groups. AIDS/HIV Settlement Payments Exempt settlement payments from any fund established pursuant to the class action settlement of Susan Walker v. Bayer Corporation, et. al., 96 C5024(N.D. Ill.) as income.
Some settlement payments were made in lieu of the class action settlement. These payments are also exempt as income. These settlements were made on or before December 31, 1997. These funds must be kept in a separate, identifiable account.