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Louisiana Medicaid Eligibility Manual Eligibility Determinations

September 15, 2023 Page 4 of H-1030 Replacing January 30, 2012

Revised/added text indicated by underscore

Deleted text indicated by “**”

Step 4. Determine total gross earned income of the individual/couple.

Step 5. Subtract any remainder of the $20 SSI disregard from gross earnings. (See MEM I-1424.2 Income Deeming Procedures when spouse to spouse deeming is applicable).

Step 6. Subtract one earned income deduction from the remaining gross earnings of the income unit. The earned income deduction is $65 and one half of the remainder of the earnings.

Step 7. The remainder is the countable earned income.

Step 8. Combine the remainders in Step 3 and Step 7 to get to the total monthy income.

Step 9. Convert this total monthly income amount to a quarterly amount.

Step 10. Subtract the MNIES for the number in the income/resource unit to determine the excess income to spend down.

Step 11. Subtract allowable bills for individuals, other than the applicant, who are included in the MNIES.

Step 12. Subtract allowable health insurance premiums. Refer to H-1011.5 Bills Allowed in the Spend Down Process.

Note: Liability for health insurance premiums arises in the month payment is due, rather than in the month (or months) for which coverage is purchased.

Step 13. Subtract paid and unpaid bills including insurance co- payments and deductibles incurred for services received within the spend-down period, in chronological order (per diem if necessary), oldest to most recent.

Note: If multiple services are received on the same date, services verified as not covered by Medicaid or non- payable by Medicaid (because the provider does not