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Title 8: Medicaid Page 69 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Non-MAGI-Related Deductions Revised April 11, 2025 Deduction for Impairment-Related Work… Routine Drugs and Medical Supplies and Services Legal reference: 20 CFR 416.976(c)(5) Deduct payments for routine drugs, medical supplies, and services if they are necessary for controlling the disabling condition and are not payable by Medicaid or another source. Examples include payments for physical therapy and medical supplies such as incontinence pads, catheter, bandages, elastic stockings, face masks, irrigating kits, and disposable sheets and bags. Durable Medical Equipment and Prostheses Legal reference: 20 CFR 416.976(c)(2) and (3) Deduct the costs of durable medical equipment and prostheses that are not payable by Medicaid or another source. The prostheses must be used primarily for functional, rather than cosmetic purposes in order to be a deduction. “Durable” medical equipment is medical equipment that:  Can withstand repeated use.  Is primarily used to serve a medical purpose.  Is generally not useful to a person who does not have the illness or injury. The following types of equipment are not deductible unless a physician verifies that the equipment is necessary to control the disabling condition:  Portable room heater.  Air conditioner.  Humidifier or dehumidifier.  Electric air cleaner.  Posture chair.  Physical fitness equipment, such as an exercise bicycle. If the expense was incurred within 11 months before receiving the earned income (i.e., because of a different job) and has not already been deducted as an impairment-related work expense, the client can choose either to:  Prorate the expense over 12 months after receiving earned income, or  Use the deduction in the first month of earned income.