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Aged, Blind and Disabled Manual Policy Manual Number: 120.015 Section: Medicare Savings Programs Chapter: Specified Low Income Medicare Beneficiary

January 5, 2026 Division of TennCare 3 released until mid-January. This can cause individuals who were previously SLMB eligible to become income-ineligible due to their increased Social Security income in the period between the COLA adjustment and the FPL increase.

To address the discrepancy caused by the timing of the COLA and FPL adjustments, SLMB enrollees who become income-ineligible in January are provided with a COLA deduction for the months of January through the month when the FPLs are released. The COLA deduction is equal to the amount of the monthly COLA increase.

e. Budget Mrs. Daley is 65 years old, receives $1,400 per month in Social Security benefits and is entitled to and receiving Medicare Part A. Her spouse is 60 years old with deemed monthly earned income of $800. Mr. Daley does not yet receive Medicare. The couple lives together in their home. Since Mr. Daley’s income in deemed to Mrs. Daley, her EDG is increased by 1. Mrs. Daley has an EDG size of 2. Mrs. Daley’s total countable income, $1,767.50, is less than 120% FPL, $2,115, so she is income eligible for the SLMB category.

Income Budget Calculation

Unearned Income $ 1,400.00 Irregular Unearned Income Disregard + $ 0.00 In-Kind Support and Maintenance + $ 0.00 Ineligible Spouse’s Deemed Unearned Income + $ 0.00 Ineligible Parent’s Deemed Income + $ 0.00 General Deduction ($20) - $ 20.00 Child Support Disregard - $ 0.00 Widow/Widower Entitlement Disregard - N/A DAC Entitlement Disregard - N/A COLA Deduction - N/A Total Net Unearned Income = $ 1380.00 Self-Employment Income

$ 0.00 Earned Income + $ 0.00 Irregular Earned Income Disregard - $ 0.00 Student Earned Income Exclusion - $ 0.00 Ineligible Spouse’s Deemed Earned Income + $ 800.00 Remaining General Deduction - $ 0.00 Earned Income Deduction - $ 65.00 Impairment Related Work Expense - $ 0.00 ½ Deduction - $ 367.50 Blind Work Expense - $ 0.00 Total Net Earned Income = $ 367.50