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UPDATED: AUGUST 1999

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INCOME LOW INCOME FAMILIES (LIF) BUDGETING METHODOLOGY

100% MAXIMUM INCOME TEST

Description: The 100% maximum income test is a test performed after the LIF household passes the 185% income test. Earned and unearned income is compared to 100% of the federal poverty level for a household of the appropriate size.

Policy: The income of the LIF applicant household, after disregards, must be less than or equal to 100% of the federal poverty level.

References: ADMs

OMM/ADM 97-2 97 ADM-23

Interpretation: LIF A/Rs cannot have income exceeding 100% of the federal poverty level. All disregards noted under INCOME LIF DISREGARDS except the $90 work expense, child/incapacitated adult care and the earned income disregard are deducted before determining if the client meets the 100% test.

NOTE: Persons in Congregate Care (Levels I, II, and III) are not required to pass the 100% income test.

This income test is performed by comparing the income of the LIF household with the federal poverty level for the appropriate household size. (See REFERENCE MEDICALLY NEEDY INCOME AND FEDERAL POVERTY LEVELS for the federal poverty levels) If the income exceeds this figure, the household is not eligible for Medicaid under LIF and is further evaluated using medically needy or expanded poverty level budgeting. If the gross income is less than or equal to 100% of the federal poverty level then the budgeting procedures described are followed. (See INCOME LOW INCOME FAMILIES (LIF) BUDGETING METHODOLOGY)

(MRG)