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Title 8: Medicaid Page 80 Iowa Department of Health and Human Services Employees’ Manual Chapter F: Coverage Groups Non-MAGI-Related Coverage Groups Revised May 22, 2026 People Ineligible for SSI (or SSA) 5. Determine countable income by adding:  The social security benefit at the time of cancellation,  Any increase other than the COLA increases calculated in Step 4, and  Any other current income. Do not deduct overpayments from the gross social security entitlement. Allow all disregards of income as provided by SSI or State Supplementary Assistance (SSA). Compare this countable income to the current income limit for SSI or for the current SSA living arrangement. If countable income is below limits for SSI or SSA, the person is eligible under the 503 coverage group.

1. Single Person with Unearned Income Mrs. Z, a single person living independently, applies for the 503 coverage group. She was canceled from SSI in August 1986. Her gross social security benefit in August 1986 was $360.40 and her gross is now $863.00. She also has VA benefits of $57 monthly, for a total income of $920. The worker determines that there was an increase in social security other than COLAs. The Social Security Administration verifies this amount to be $140 monthly. To calculate income eligibility for SSI:

$ 360.40

+ 140.00

+ 57.00

$ 557.40

- 20.00

$ 537.40 Social security at time of SSI cancellation Non-COLA social security income Veterans income

General income exclusion Countable income to compare to $994, the need standard for her current situation. Since countable income is less than need, Mrs. Z is eligible for Medicaid.