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ABD Only: This deduction does not apply to institutional eligibility. Step 1 only determines if the applicant is categorically needy or medically needy. Step 2 budgeting of liability toward cost of care also does not include this deduction.

SPEND DOWN OBLIGATION: Medically needy clients can establish medically needy coverage by: 1. Using incurred medical expenses to meet their spend down obligation (CMA 702-1 Medical Expense Option); 2. Choosing the cash option and paying the spend down obligation amount to the Department (CMA 701-1 Cash Option); or 3. Using a combination of incurred medical expenses and the cash option.

MULTIPLE FILING UNITS IN A HOUSEHOLD (ACA/Family only): Regardless of the number of filing units in a household, test the income of each filing unit against the appropriate income standards based on household size and circumstances.

ABD MEDICALLY NEEDY INCOME LEVELS (MNIL): Effective July 1, 2001 Individual…$525 Couple…$525

ACA/FAMILY COMPUTATION: Use the table of income levels to determine: 1. Income eligibility for medically needy; or 2. The amount of spend down required before medically needy eligibility may be granted. When the individual or family income (after appropriate disregards -- see 602-1) is more than the countable monthly income standard (CMA 002) but equal to or less than the appropriate Medically Needy Income Level (MNIL), the child(ren) is eligible for medically needy without a spend down. When the individual or family income (after appropriate disregards) is more than the applicable MNIL, the child(ren) is eligible for medically needy with a spend down.