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Subsidized Child Care Assistance Program Policy Manual Chapter 7. Family Definition and Determining Income Eligibility Revised 08/01/2024

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i. The health benefit income is partially countable if the benefit deduction amounts are less than the benefit dollars listed in the gross income section. When this occurs, the benefit dollars that are not utilized for medical, dental or vision insurance are countable. ii. The health benefit income is not countable if the deductions equal or exceed the benefit dollars in the gross income section. If health care benefits do not meet the criteria, child care staff should contact their Subsidy Services Technical Assistance Consultant to determine the deductions and countable income.

D. Medical Expenses

When an applicant/recipient states they have out-of-pocket medical expenses, those medical expenses that exceed more than 10% of the gross monthly income must be considered by the LPA/DSS for the purpose of reducing the parental fee, not in determining basic income eligibility. Medical expenses include payments to medical providers, the purchase of prescriptions, and post taxed medical insurance only. To determine the amount of the decrease that is reasonable, the LPA/DSS must:

1. Verify the medical expense that is paid in the base period only. Verification may include a billing statement from the provider showing the amount due after insurance coverage; or proof of the amount covered and uncovered expenses from all insurance carriers.

2. Deduct only the amount of the total medical expenses from the gross income.

3. The parental fee assessed will be reduced by subtracting the amount of