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To calculate the $65 and ½ earned income deduction, subtract $65 from the member’s monthly earned income. Divide the result by two, and add $65. This is the earned income deduction. Example 3 Michelle has monthly income of $1,240. Her $65 and ½ earned income deduction is $1,240.00 - 65.00 __________ $1,175.00 $1,175.00/2 = $587.50 Countable Income

$ 587.50 + 65.00 __________ $ 652.50 Earned Income Disregard Michelle’s earned income deduction amount is $652.50. This page last updated in Release Number: 26-03 Release Date: 08/12/2026 Effective Date: 08/12/2026 16.1 Assets Introduction Children under the age of 19 are not subject to an asset test for any category of EBD Medicaid, including MAPP, community waivers, FamilyCare, etc. SSI MA recipients have already had their assets verified by the Social Security Administration. Assets should not be re-verified for these individuals. Do not count income as an asset in the month it was received when determining the countable asset amount. Example 1: Mr. Johnson has $2,600.00 in his checking account for the month of March. This includes his Social Security check of $700.00 that was deposited into the account on March 10. His countable asset amount for March is $1,900.00.

Example 2: Mrs. Jones has $2,400.00 in her checking account for the month of March. She receives Social Security of $1,000.00 each month. She cashed her Social Security check and used the cash to pay her bills. Because her income is not included in the checking account balance, the income should not be deducted from the checking account balance. Add together all countable, available assets (see SECTION 16.2 ASSETS AVAILABILITY), the fiscal group owns including: 1. Joint accounts (see SECTION 16.4.1 JOINT ACCOUNTS) 2. Burial assets (see SECTION 16.5 BURIAL ASSETS) 3. Savings account 4. Checking account 5. Cash available 6. Stocks, bonds, CDs. 7. Loans (see SECTION 16.7.2 LOANS) 8. Life insurance (see SECTION 16.7.5 LIFE INSURANCE)