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Title 8: Medicaid Page 99 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Coverage Groups Non-MAGI-Related Coverage Groups Revised May 22, 2026 People in Medicare Savings Programs to recalculate the poverty level using the social security COLA increases received in January.

Mrs. J receives $1,071 from social security and $125 gross earned income per month. On January 1, her social security increases to $1,112 and her gross earned income increases to $175 due to increased hours. The federal poverty level is published in January. For the months of January and February, Mrs. J’s social security COLA increase is disregarded. Income is considered as follows for January and February (the social security COLA is disregarded): $1,071 – 20 $1,051 Gross social security income Income exclusion Countable social security income $ 175 – 65 $ 110 – 55 $ 55 Gross earned income Work exclusion

½ remainder Countable earned income $1,051 + 55 $1,106 Countable social security income Countable earned income Countable monthly net income The countable monthly net income is compared to 100% of the poverty level. For the month of March, Mrs. J’s countable monthly net income is recalculated using the social security with the COLA increase ($1,112). Income is considered as following for March: $1,112 – 20 $1,092 Gross social security income Income exclusion Countable social security income $ 175 – 65 $ 110 – 55 $ 55 Gross earned income Work exclusion

½ remainder Countable earned income