603.01 Earned Income Disregard (EID) (MAM)

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See the Adult Assistance Manual (AAM) Section 603.01, Earned Income Disregard (EID), for policy on applying the EID in financial assistance cases; and assistance group size and composition (whether there is an applicant or non-applicant spouse or needy essential person.)

See below for how the EID is applied in adult category medical assistance cases.

The EID is subtracted from individual or combined gross earned income, depending on assistance group composition and type of assistance.

Do not allow the EID for individuals requesting:

·  MAGI-related medical assistance;

·  Nursing facility care as categorically needy; or

·   HCBC-CFI (formerly known as HCBC-ECI) categorically needy MA-only.

EARNED INCOME DISREGARD (EID)

ANB EID for ANB Medical Assistance (MA)

The ANB EID is as follows when determining eligibility for ANB MA:

·     the first $85 of the individual's monthly gross earned income;

·     one-half of the remaining earned income; and

·     the amount approved in an Individualized Plan for Employment (IPE), if all of the following are met:

-      there is an approved IPE for a specified period of time and the plan requires the use of additional disregards; and

-      an IPE has been submitted and approved by the Supervisor of Services for the Blind and Vision Impaired (SBVI), Division of Vocational Rehabilitation.

APTD EID for APTD Medical Assistance (MA)

The APTD EID is as follows when determining eligibility for APTD MA:

·  the first $65.00 of the individual's monthly gross earned income;

·  an amount allowable for Impairment Related Work Expenses (IRWE); and

·   one-half of the remaining earned income.

OAA Medical Assistance (MA), QDWI, QMB, SLMB, and SLMB135 EID

The EID for OAA MA, QDWI, QMB, SLMB, and SLMB135 is as follows:

·  the first $65.00 of the individual's monthly gross earned income; and

·  one-half of the remaining earned income.

Exception: For OAA recipients who are receiving an IRWE deduction at the time their case is transferred from APTD MA to OAA MA due to the recipient turning age 65, continue to allow an amount for Impairment Related Work Expenses as if he or she was still receiving APTD MA. For these individuals, the EID is the first $65.00 of the individual's monthly gross earned income, the IRWE amount, and one-half of the remaining earned income.

Impairment Related Work Expense (IRWE)

Impairment Related Work Expenses (IRWEs) are items and services that an individual with a disability, needs in order to work, even if these items are also needed for non-work activities.

Allow IRWEs as part of the SGA determination process for APTD medical assistance eligibility, in the Earned Income Disregard process for APTD MA applicants/recipients, and for OAA MA recipients with an IRWE deduction at the time their case is transferred from APTD MA to OAA MA:

·  If the individual has paid for the expense without full reimbursement available to them.

·  As a one-time monthly deduction or a deduction that is prorated over 12 months.

·  For months when the IRWE item or service is used in order to work and is currently being paid (retroactive to 12/93).

The maximum allowable deduction in a given month must be less than or equal to the monthly gross earned income minus $65.00. Choose the method that provides the highest total deduction to the individual unless otherwise specified by the individual. If the IRWE deduction is greater than monthly gross earned income minus $65.00, consider earned income to equal $0.00.

How to Apply the EID

The EID is applied based on assistance group size, type of assistance, and assistance group composition.

·  For one person cases, use the EID applicable to the client's category and type of assistance.

·  For cases with an applicant and an applicant spouse, individually calculate each spouse's EID based on the program and type of assistance for which each spouse is applying.

·  For cases with an applicant and non-applicant spouse/needy essential person, combine the individuals' gross earned incomes, then subtract the EID appropriate to the applicant's program and type of assistance:

·  If the applicant's program of assistance is APTD MA or ANB, allow an amount for IRWE (APTD MA) or approved IPE expenses (ANB) incurred by the applicant only. Do not allow an IRWE for the non-applicant spouse or needy essential person.

·  See the Adult Assistance Manual (AAM) for information about how to apply the EID for financial assistance cases.

EARNED INCOME DISREGARD EXAMPLES

Example #1

An ANB recipient earns $400.00 per month in gross wages, and has $50 in monthly expenses specified in an IPE. The applicant spouse receives OAA and has earned income of $200 per month.

The ANB recipient's EID is as follows:

$400.00 gross earned income

- 85.00 subtract the first $85

315.00

- 50.00 subtract allowable IPE expenses

$265.00

- 132.50 subtract one-half of the remaining income

$132.50 countable earned income after the EID

The EID for the ANB recipient is $267.50 ($85 + 50.00 + 132.50= $267.50).

The OAA applicant spouse's EID is as follows (Note that the OAA financial assistance EID is offered below for reference. For further details about the financial EID, see the AAM):

The total EID for the MA assistance group is $400 ($267.50 for the ANB recipient and $132.50 for the OAA applicant spouse).The total EID for the financial assistance group is $335.50 ($267.50 for the ANB recipient and $68 for the OAA applicant spouse).

Example #2

An APTD applicant has monthly earned income of $500, and incurs $200 in IRWEs. The non-applicant spouse has $100 in monthly earnings (Note that the APTD financial assistance EID is offered below for reference. For further details about the financial EID, see the AAM).

References: He-W 601.03(l) & (p), He-W 606.69, He-W 654.02, He-W 854.15, RSA 167:3-c,IX, RSA 167:4,I, 20 CFR 416.976, 20 CFR 416.1112