Section R9-22-1437. MED Income Eligibility Requirements

A.      Income exclusions. The exclusions in R9-22-1420(C) apply to the MED family unit.

B.       Income standard.

1.        The Department shall divide the annual FPL for the MED family unit that is in effect during each month of the income period by 12 to determine the monthly FPL.

2.        The Department shall add the monthly FPLs for the income period and multiply the resulting amount by 40 percent.

3.        Changes to the annual FPL are implemented in April of each year.

C.      Income period. The income period is the month of application and the next two months. The Department shall add together the three months’ income to establish the MED family unit’s income amount.

D.      Medical expense deduction period. The medical expense deduction period is a three-month period consisting of:

1.        For a new application, the month before the application month, the month of application, and month following the application month; or

2.        For a MED eligibility review, the last month of the prior MED eligibility period and the following two months.

E.       The Department shall calculate the amount of countable monthly income as follows:

1.        Subtract a $90 cost of employment allowance from the gross amount of earned income for each person whose earned income is counted;

Arizona Health Care Cost Containment System - Administration

2.	Disregard from the remaining earned income an amount		a.      Consistent with the intent of the owners, or
	billed by the provider for the care of each dependent child		b.     Based on each owner’s proportionate net contribu-
	under age 18 or incapacitated adult member of the MED		tion if there is not clear and convincing evidence of a
	family unit if the care is for the purpose of allowing the		different allocation.
	person to work. If more than one person in the household		3.     The  Department   shall  establish  availability  of  a   trust
	is responsible for and billed for the care of a dependent		under 42 U.S.C. 1396p(d)(4)(A) or (C).
	child, the disregard may be split between the wage earn-	C.	Unavailability. The Department shall consider the following
	ers if splitting the disregard is to the benefit of the family,		resources unavailable:
	but shall not exceed the maximum disregards as follows:		1.     Property subject to spendthrift restriction, such as:
	a.      A maximum of $200 for a child under age two and		a.      Accounts established by the SSA, Veteran’s Admin-
	$175   for    other   dependents   for   a   wage-earner		istration, or similar sources that mandate that the
	employed full-time (86 or more hours per month);		funds in the account be used for the benefit of a per-
	and		son not residing with the MED family unit; or
	b.     A maximum of $100 for a child under age two, and		b.     Trusts established by a will or funded solely by the
	$88   for    other   dependents   for   a   wage   earner		income and resources of someone other than a mem-
	employed part-time (less than 86 hours a month);		ber of the MED family unit.
3.	Add the remaining earned income for each MED family		2.     A resource being disputed in a divorce proceeding or pro-
	member to the unearned income of all MED family mem-		bate matter;
	bers;		3.     Real property located on a Native American reservation;
4.	Compare  the  MED  family’s  unit  countable   income		4.     A resource held by a conservator to the extent court-
	amount to the income standard in subsection (B). The dif-		imposed restrictions make the resource unavailable to the
	ference is the amount of medical expenses the family		applicant, member, or member of the family unit for:
	shall incur during the medical expense deduction period		a.      Medical care,
	to become eligible;		b.     Food,
5.	Subtract allowable medical expense deductions that were		c.      Clothing, or
	incurred by:		d.     Shelter.
	a.      A member of the MED family unit;	D.	Resource exclusion. The Department shall exclude the follow-
	b.     A deceased spouse or minor child of a MED family		ing resources from the calculation of resources under subsec-
	unit if this person would have been a member of the		tion (E):
	MED  unit  during  the  MED  expense   deduction		1.     One burial plot for each person listed in R9-22-1436;
	period;		2.     Household furnishings and personal items that are neces-
	c.      A person who was a minor child of a MED family		sary for day-to-day living;
	unit member when the expense was incurred but		3.     Up to $1500 of the value of one prepaid funeral plan for
	who is no longer a minor child; or		each person listed in R9-22-1436 that specifically covers
	d.     A minor child, including a child who is a runaway,		only funeral-related expenses as evidenced by a written
	who left home before the date of application to live		contract;
	with someone other than a parent; and		4.     The value of one motor vehicle regularly used for trans-
6.	Compare the net MED family income to the income stan-		portation. If the MED family unit owns more than one
	dard listed in subsection (B).		vehicle, the exclusion is applied to the vehicle with the

F.       The family is eligible if the net income in subsection (E)(6) does not exceed the income standard in subsection (B).

Historical Note

New Section made by final rulemaking at 11 A.A.R. 4942, effective December 31, 2005 (Supp. 05-4).