Page 126

MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |126 Effective Month: July 2025 • Service not in the course of the employer's trade or business • Service by certain home workers • Members of the Uniformed Services • In the form of shelter which is on the employer's business premises for the employer's convenience andits acceptance by the employee is a condition of employment This SSI policy principal applies only to SSI-related cases. NOTE: If there are cases where it is questionable about whether ISM is countable as income in an SSI-related case, the case should be referred to state office for clearance. 200B.01 MAGI INCOME INTRODUCTION This chapter discusses sources and treatment of income in the MAGI-related programs that cover children, pregnant women and parents or caretaker relatives. Modified Adjusted Gross Income or MAGI is a financial methodology based on federal tax rules. In accordance with 42 CFR 435.603, MAGI-based income rules apply in determining both household income and household composition. MAGI financial methodology is aligned with the process used to determine eligibility for premium tax credits and cost-sharing reductions available to certain individuals purchasing coverage through the Federally Facilitated Marketplace or FFM. The requirement that Medicaid and the FFM use MAGI-based income rules is designed to promote coordination and avoid gaps in coverage, to the extent possible, for individuals that transfer between different types of insurance affordability programs. A discussion of applications filed with the FFM is located in Chapter 101.04.08. 200B.01.01 MAGI INCOME RULES Modified adjusted gross income has the literal meaning of income that is: • Decreased by allowable tax deductions. Generally, the same adjustments to income allowable under IRS rules are allowable deductions from countable income for Medicaid and CHIP purposes. • Increased by the amount of interest received or accrued that is exempt from tax and foreign earned income that is excludable as taxable income.