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ABD: In deeming spouse-to-spouse, the ineligible spouse receives an ineligible child allocation for each ineligible child in their home. See 'Ineligible Child Allocation’ above. Processing guidelines for institutionalized/waiver individuals and spouses are found in the ABD 800 Residential Medical Institutions Overview, based on the appropriate institutional setting.

ALIEN SPONSOR DEEMING: ABD: When a sponsored aged, blind or disabled alien, who does not receive SSI applies for Medicaid, their sponsor’s income (and sponsor’s spouse’s income, if living together) is deemed to the alien as income. Income policies in the 500 section apply to the sponsor’s income in the same manner as the applicant, with the exception that vendor/in-kind income is not included in the deeming process. When more than one alien is sponsored by the same sponsor/couple, the deemed income is considered available in full to each sponsored alien; it is not prorated among sponsored aliens. The current SPA (ABD 014 Poverty Guidelines) is used to determine the amount of income allocated to the alien. If the sponsor is single, or does not live with their spouse, use the SPA for one; the SPA for a couple is used when the sponsor is married & lives with their spouse or when the alien is co-sponsored by two single sponsors. If the alien is co-sponsored by two couples, income is deemed from each couple separately. The sponsor is allowed an income allocation for each dependent equal to ½ the current SPA; however, The dependent’s income is not subtracted from the dependent allocation. A dependent in this situation is the same as a dependent when determining Family Income Maintenance Allowance (FMA 805-1 Residential Chemical Dependency Treatment). Family Medically Needy: Sponsor income (sponsor and spouse, if married) is deemed to sponsored aliens. A sponsor is a U.S. citizen or alien admitted for permanent lawful residence who is: 1. 18 years or older, 2. Residing in any U.S. state or District of Columbia, and 3. Petitioning for the alien’s admission under Section 213 of the INA. When the sponsor signs an ‘Affidavit of Support’ (I-134) but refuses to cooperate in providing and verifying their income, the alien’s Medicaid may be authorized. Sponsors are required to reimburse all means-tested benefits the alien and their family receive. The sponsor and their spouse’s income and resources are deemed to the sponsored alien.

Effective Date: 01/01/2026