400.11.02 EXAMPLES OF ALLOCATING TO INELIGIBLE CHILDREN

A married couple, Jan and Bob, have 3 children: • Max (age 10) is Jan’s biological child. • Sam (age 6) is the common child of Jan/Bob • Pat (age 16) is Bob’s biological child In all of the examples below, each applicant will be considered for eligibility in COE- 045, the Healthier MS waiver (HMW) as a disabled individual with no Medicare: Example 1: Bob is applying. He is disabled and does not have Medicare. Jan, his ineligible spouse, has earned income only. Jan’s income is deemable to Bob after allocating to Max, Sam and Pat (ineligible children). Rule: Since deeming applies (earnings are deemable), Jan’s income can be allocated to her 2 biological children (Max and Sam) and to her stepchild (Pat). If deeming applies, an allocation can be made to all children who meet the definition of an ineligible child. Example 2: Bob is applying. He is disabled and does not have Medicare. Jan, his ineligible spouse, receives a VA pension (IBON), resulting in non-deemable income. As a result, there is no income to deem to Bob and no income to allocate to the ineligible children. Rule: IBON is not deemable if the person who receives the IBON is not applying. There can be no income allocation from income that is not deemed. Example 3: Pat is applying as a disabled child in the HMW. Jan’s income (earnings only in this example) is not deemed to Pat because Pat is her stepchild. Bob’s income is used to determine eligibility for his biological child (Pat), but his income is 1st allocated to Sam (common child) and to Max (stepchild). Rule: Bob is treated as a 1-parent household in determining how much of his income will be deemed in the parent to child budgeting process. Example 4: Sam (common child) is applying as a disabled child in the HMW. (In this example Jan has earnings, no IBON.) The income of both Jan and Bob is deemed to their child after allocating to both Max and Pat. Rule: Both parent’s income is deemed to their common child provided both parents have the type of income that is deemable.