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AGED, BLIND, AND DISABLED MEDICAID 901-1 HCBS/Waiver Income Budgeting
Supersedes: ABD 901-1 (07/01/2025) Reference: 42 CFR 435.217; ARM 37.40.1401, .1402 .1406 through.1408; 37.82.101 Overview: Home & Community Based Services (HCBS) Waiver clients can be either categorically needy or medically needy. Determination of categorically needy is outlined in the Categorically Needy Business Process. If the client is ineligible for Categorically Needy coverage, the following Waiver medically needy budgeting policies apply to individuals who meet Level of Care and request HCBS/Waiver coverage under the following programs: 1. Physically Disabled Waiver 2. Aged Waiver 3. SDMI Waiver 4. Developmental Disabilities Waiver A Waiver applicant’s income eligibility is determined using only the waiver applicant’s income. NOTE: Individuals in the Psychiatric Residential Treatment Facility (PRTF) waiver must qualify for Medicaid through non-waiver policies outlined in CMA 601-1 Prospective Budgeting a through CMA 603-1 Deeming. When determining the budget for a medically needy waiver applicant, allowable deductions may include: 1. $20 general disregard 2. Up to $65 of gross earned income 3. One-half remainder of earned income 4. A community spouse income maintenance allowance (allowed only when institutionalized individual is married)