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UPDATED: JULY 2008

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INCOME LIF BUDGETING METHODOLOGY

EARNED INCOME DISREGARD

Description: An earned income disregard will be applied to the earnings of each income earner in families who have earned income. A percentage of earned income will be disregarded from the earnings of each income earner for families who:

1. pass the three tests

• 185% of Medicaid Standard,

• 100% of poverty level test (See INCOME LOW INCOME FAMILY (LIF) BUDGETING METHOD- OLOGY: 185% MAXIMUM INCOME TEST and 100% MAXIMUM INCOME TEST),

• 100% of Medicaid Standard, or

2. pass the 185% Medicaid Standard, the 100% poverty level test and received LIF in one out of the four previous months.

No time limit is applied to the earned income disregard.

The earned income disregard will be adjusted annually to reflect changes in the poverty level guidelines. The annual earned income disregard percentages can be found in REFERENCE EARNED INCOME DISREGARD.

Policy: After the $90 work expense is deducted from gross income, the current earned income disregard percentage is applied to the remaining income to determine the amount of the earned income disregard. The earned income disregard is then deducted from gross income.

References: SSL Sect.

366

ADMs

05 ADM-09

OMM/ADM 97-2

(MRG)