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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |128

Effective Month: July 2025

200B.01.02 MAGI LIBERALIZED INCOME RULES

Liberalized income rules are prohibited under MAGI except for those that were in effect prior to the implementation of MAGI on January 1, 2014. The liberalizations approved and in effect prior to MAGI are limited to: • Pregnant minors - Pregnant minors under the age of 19 who live with or separately from parent(s), who are not otherwise eligible in any other full-service COE, have all income disregarded in determining Medicaid eligibility as a pregnant woman. • Non-IV-E Adoption Assistance Children with Special Needs (certified by the Department of Child Protection Services or DCPS) - All income is disregarded. No income test applies.

200B.01.03 TYPES OF INCOME Income is either earned or unearned. Regardless of the type of income, allowable deductions are the same, i.e., either IRS allowed deductions and/or the 5% standard deduction is applicable, when needed.

TYPES OF EARNED INCOME FOR MAGI PURPOSES Earned income consists of the following types of payments (list is not all inclusive): • Wages • Net earnings from self-employment • Royalties earned by an individual in connection with any publication of his work and any honoraria received for services rendered • Military pay • Jury Duty pay TYPES OF UNEARNED INCOME FOR MAGI PURPOSES Unearned income consists of the following types of payments (list is not all inclusive): • Annuities, pensions, retirement benefits • Lottery or gambling winnings • Military retirement • Trust income, rental income, royalty income from mineral rights • Unemployment compensation