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COMBINED MEDICAID 602-1 Income Disregards and Deductions

Supersedes: CMA 602-1 (01/01/2025) Reference: ARM 37.82.101, .903; 42 CFR 435.601; 20 CFR 416.1112 Overview: Certain household income is disregarded or deducted when determining Medicaid eligibility. ACA: Households receive a 5% income disregard of the 100% FPL for that household size. No other disregards or deductions are applied to ACA Medicaid cases. ABD and Family Medically Needy: Speciﬁc earned and obligated income disregards are subtracted from household income when determining eligibility. WORK DISREGARDS: ABD: Disregard the ﬁrst $65 and one-half of remaining earned income for each eligible ABD client. When the ﬁling unit consists of an eligible client and an ineligible, deemed spouse, both spouse’s income is combined and then the $65 and ½ of remaining earned income disregard is applied once to the combined earnings. When both spouses qualify for ABD Medicaid (i.e., an eligible couple), the $65 and ½ of remaining earned income is disregarded from each spouse’s earned income. Blind or Disabled clients are allowed additional work expenses on top of the standard work disregard. BLIND/DISABLED WORK EXPENSES Each blind or disabled client living in the community may have their gross countable earned income reduced by allowable work expenses. Different expenses are allowed for blind and disabled clients. Work expenses must be veriﬁed and cannot be payable by a third party (e.g., Medicaid, insurance, etc.). When appropriate, reasonable transportation and lunch expenses are allowed, based on the client’s stated costs.

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Official source

COMBINED MEDICAID 602-1 Income Disregards and Deductions

Supersedes: CMA 602-1 (01/01/2025) Reference: ARM 37.82.101, .903; 42 CFR 435.601; 20 CFR 416.1112 Overview: Certain household income is disregarded or deducted when determining Medicaid eligibility. ACA: Households receive a 5% income disregard of the 100% FPL for that household size. No other disregards or deductions are applied to ACA Medicaid cases. ABD and Family Medically Needy: Speciﬁc earned and obligated income disregards are subtracted from household income when determining eligibility. WORK DISREGARDS: ABD: Disregard the ﬁrst $65 and one-half of remaining earned income for each eligible ABD client. When the ﬁling unit consists of an eligible client and an ineligible, deemed spouse, both spouse’s income is combined and then the $65 and ½ of remaining earned income disregard is applied once to the combined earnings. When both spouses qualify for ABD Medicaid (i.e., an eligible couple), the $65 and ½ of remaining earned income is disregarded from each spouse’s earned income. Blind or Disabled clients are allowed additional work expenses on top of the standard work disregard. BLIND/DISABLED WORK EXPENSES Each blind or disabled client living in the community may have their gross countable earned income reduced by allowable work expenses. Different expenses are allowed for blind and disabled clients. Work expenses must be veriﬁed and cannot be payable by a third party (e.g., Medicaid, insurance, etc.). When appropriate, reasonable transportation and lunch expenses are allowed, based on the client’s stated costs.