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Aged, Blind and Disabled Manual Section: Financial Eligibility Requirements Policy Manual Number: 110.040 Chapter: ABD Deeming of Income and Resources

August 1, 2025 Division of TennCare 4

The ineligible child allocation is equal to the difference between the FBR for a couple and the FBR for an individual. The allocation is reduced by the child’s own countable income. If there is more than one ineligible child in the household, an allocation is determined for each ineligible child. When the ineligible child allocation is deducted from parental income, that amount should include the total of all ineligible child allocations, if applicable. See the ABD Income Disregards and Expenses policy for specific deductions and expenses used to determine the child’s net income effecting the child allocation. ii. Ineligible Child Allocation Budget Two siblings live in a home with their mom and her husband. One of the children has an application submitted for ABD TennCare Medicaid. His parents’ extra income will be deemed to him. Before the extra income amount can be determined, the sibling who is not applying must be allocated income for her needs. She receives $200 in child support from her father who lives outside the home. She has no other income. Ineligible Child(ren) Net Self-Employment Income $ 0.00 Net Earned Income + $ 0.00 Total Earned Income = $ 0.00 Student Earned Income Exclusion - $ 0.00 Net Unearned Income + $ 200.00 Cost of Living Adjustment (COLA) Disregard - $ 0.00 Living Allowance (SSI-FBR for a couple minus SSI-FBR for an individual) = $ 392.00 Total Countable Income (Total Earned Income + Net Unearned Income) - $ 200.00 Total Ineligible Child Allocation = $ 192.00 The above budget is current as of January 2020. The allocation is deducted from the parent’s unearned income first, then from the parent’s earned income. iii. Ineligible Parental Allocation Ineligible parents of an ABD TennCare Medicaid applicant/enrollee will receive the ABD disregards prior to determining the deemed income amount. See the ABD Income Disregards and Expenses policy for specific deduction/expenses descriptions. If an ineligible parent is required to pay mandatory child support to an individual outside of the household, then the income used to pay the mandatory child support is not deemed.