621.05 Cost of Care: CFI Medical Assistance SR 08-31, 12/08 (AAM-A)

There is no cost of care liability for individuals who are requesting Choices For Independence (CFI) services, a Home and Community-Based Care (HCBC) service, who meet the categorically-needy or medically-needy financial eligibility requirements for any category of financial or medical assistance.

Only individuals determined eligible for CFI services via the special income limits (the Nursing Facility CAP) are responsible for applying their net income towards the cost of care.

Use the following steps to determine the amount of cost of care.

1. Subtract the following from the gross earned income:

- Employment Expense Disregard (EED), if applicable, per Section 603.03, Employment Expense Disregard.

- Earned Income Disregard (EID), if applicable, per Section 603.01, Earned Income Disregard.

The result is net earned income.

2. Add countable gross unearned income and SSI payments to net earned income. The result is net income.

3. Subtract allowable deductions.

4. Subtract an additional "Maintenance Allowance" based on the following:

- $56, the "Personal Needs Allowance," if the CFI individual’s living arrangement is Residential Care, Enhanced Family Care, or Community Residence.

- The current Nursing Facility CAP if the CFI individual’s living arrangement is Independent Living.

5. Subtract all Medicare Premiums if the individual:

- receives Medicare Part A, Part B, Part C, or Part D; and

- is not eligible for the Qualified Medicare Beneficiary (QMB), Specified Low-Income Medicare Beneficiary (SLMB) programs, or the Low Income Subsidy (LIS) for Medicare Part D.

6. Subtract other medical expenses incurred by the individual that are not subject to third-party payment including:

- health insurance premiums, deductibles, or coinsurance;

- necessary medical and remedial care that would be covered by medical assistance, except that allowable payment limits have been exceeded;

- necessary medical or remedial care recognized under state law but not covered by medical assistance; and

- currently obligated, unpaid prior medical debts.

7. Subtract SSI.

8. Add the Veteran’s Aid and Attendance Allowance.

9. The result is the amount of income the individual must apply toward the cost of care.