Page 111

UPDATED: FEBRUARY 2005

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INCOME ADC-RELATED BUDGETING METHODOLOGY

$30 AND 1/3 EARNED INCOME DISREGARD

Policy: The $30 and 1/3 Earned Income Disregard (EID) applies when using ADC-related budgeting for employed persons who have received Medicaid under a LIF budget in one out of the four preceding months. The $30 and 1/3 disregard applies when a family with earned income loses LIF eligibility and is not eligible for Transitional Medicaid (TMA).

After the $90 work expense is disregarded, the first $30 plus 1/3 of income remaining is subtracted. Eligible persons are entitled to receive this disregard for four consecutive months. In addition, these persons may receive a $30 disregard per month for a period of eight months following this four month period provided the A/R continues to be employed.

Description: The $30 and 1/3 Earned Income Disregard (EID) is calculated by subtracting the first $30 of earned income and then subtracting 1/3 of the remaining earned income.

References: SSL Sect.

366

Dept. Reg.

352.2 360-4.6(a)(3)

ADMs

90 ADM-3 85 ADM-33 82 ADM-21 81 ADM-55

INF

98 OMM/INF-02

Interpretation: The $30 and 1/3 or $30 disregard is applicable only to earned income. The income earner(s) in the applying household is entitled to receive the $30 and 1/3 portion of this disregard if they have received Medicaid under a LIF budget in one of the four preceding months. The $30 and 1/3 or $30 disregard is applicable regardless of the reason for the loss of eligibility under the LIF program. Eligible individuals may receive the $30 and 1/3 disregard for four consecutive months.

(MRG)