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A court or fair hearing can increase the community spouse income allocation if it determines the spouse is not able to provide for his or her necessary and basic maintenance needs with the amount allocated. 18.6.3 Dependent Family Member Income Allowance The institutionalized person can allocate a certain amount of their income to dependent family members (as defined in SECTION 18.6.1 SPOUSAL IMPOVERISHMENT INCOME ALLOCATION INTRODUCTION) who live with the community spouse. Each dependent family member’s income allowance is calculated as follows: 1. Subtract the dependent family member’s actual income from the Dependent Family Member Income Allowance Standard. This amount is updated annually and can be found in SECTION 39.4.4 LTC SPOUSAL IMPOVERISHMENT POST-ELIGIBILITY ALLOWANCES AND COMMUNITY SPOUSE ASSET SHARE. Use the EBD rules for countable income, but do not give earned income, unearned income, or work-related deductions. 2. Divide the result by three. This page last updated in Release Number: 25-02 Release Date: 04/09/2025 Effective Date: 04/09/2025 18.7 Reserved This page last updated in Release Number: 15-01 Release Date: 06/10/2015 Effective Date: 06/10/2015 18.8 Spousal Impoverishment Notices After the institutionalized person is determined eligible for Institutional Medicaid or HCBW Medicaid, the following notices are sent to both spouses: 1. Institutional Medicaid Income Allocation (F-10097) or Community-Based Long-Term Care Services Medicaid Income Allocation (F-10097A). This notice contains the amount of income allocated to the community spouse and the amount of the institutionalized person's cost of care contribution. This notice is must also sent any time there is a change in the allocated amount. 2. Medicaid Member Asset Allocation (F-10098). This notice specifies the amount of assets the member must transfer to the community spouse in order to retain Medicaid eligibility. It also specifies the date by which the transfer must be made. Note: These notices are not sent for Group A eligible Waiver cases. This page last updated in Release Number: 23-04 Release Date: 12/18/2023 Effective Date: 12/18/2023 18.9 Community Spouse's Medicaid Application Count assets and income allocated and transferred to the community spouse by the institutionalized person when determining the community spouse's Medicaid eligibility. Beyond these, count only the assets and income belonging to the community spouse.