Page 99

Title 8: Medicaid Page 95 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

Mr. J, aged 31, has a disabling medical condition and continues to work. The Social Security Administration has notified him that he can continue with Medicare Part A coverage, but that he will have a premium to pay. Social Security also notifies him about the QDWP program and the general guidelines for eligibility. Mr. J applies for QDWP. He has $2,200 in gross monthly earnings. Mrs. J, aged 30, has $2,500 in gross earnings. They have one child, aged 10, who has no income. Step 1: Determine if Mr. J is eligible. $ 2,200.00 – 20.00 $ 2,180.00 – 65.00 $ 2,115.00 – 1,057.50 $ 1,057.50 Gross monthly earnings Income exclusion

Work exclusion

1/2 remainder Mr. J’s net countable income is below 200% of the poverty level for a household size of one Step 2: To determine income eligibility for Mr. J, income is diverted to the ineligible child. A maximum of $497 may be allowed to meet the child’s needs. Mrs. J is an ineligible spouse because she is not disabled and is not entitled to Medicare Part A. $ 2,500 – 497 $ 2,003 Mrs. J’s gross earned income Allocated for the ineligible child Amount of income to deem from Mrs. J, the ineligible spouse, to Mr. J. Step 3: Mr. and Mrs. J’s earned income is added together: $ 2,003.00 + 2,200.00 $ 4,203.00 – 20.00 $ 4,183.00 – 65.00 $ 4,118.00 – 2,059.00 $ 2,059.00 Mrs. J’s earned income after the deeming Mr. J’s gross earned income

Income exclusion

Work exclusion

1/2 remainder Net countable income The $2,059.00 is compared to 200% of the poverty level for Mr. and Mrs. J, a two-person household. Mr. J is income-eligible under the QDWP group.