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State of Maryland Medical Assistance Manual Revised April 2014

Internal Revenue Service. A minor child (under 21) living with the community spouse is automatically considered a dependent. To determine if the family member is entitled to the Family Allowance: 1. Calculate the family member’s gross monthly income. Do not count any

income excludable under COMAR 10.09.24.07J or K. Do not apply any income disregards. 2. Compare the figure to the BMS amount. • If the family member’s gross monthly income exceeds the BMS, the family allowance is not applicable. • If the income is less than the BMS, divide the difference by 3. The result is the amount of the Family Allowance for that family member. Deduct the Family Allowance from the institutionalized spouse’s monthly income. If a court or a hearings officer has ordered support payments greater than the amount determined by this method, allow the larger amount. B. Dependent Allowance This is a deduction from the income of an institutionalized person who does not have a spouse living in the community to enable that person’s dependents to be maintained at the MNIL appropriate to the family size. This applies only to unmarried children under 21 years from whom the institutionalized person is separated solely due to institutionalization. • The resources of the dependents are evaluated under Section 800. To allow this deduction, countable resources must be within the appropriate MA-2 standard. • The income of the dependents includes earned and unearned income as specified in COMAR 10.09.24.07H and I. • To calculate the income of the dependents, apply the income exclusions specified in COMAR 10.09.24.07 J and K with the following exceptions: o Money received from performing volunteer work; o Educational expenses; o Earned income of a blind or disabled child; o Infrequent or irregular earned income; o Infrequent or irregular unearned income; o Work study; and o Earnings of a person younger than 21. Income from these sources is not excluded in determining family income. No income disregards are allowed when determining family income. The appropriate MNIL, based on family size, less total countable (non-excluded) family income, equals the dependant allowance. 5. Medicare and Other Health Insurance Premiums