Budgeting Procedures for Financially Responsible Absent Parents 510-05-90-23

(Revised 10/1/13 ML #3390)

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This section applies to individuals who applied for and were found eligible for Medicaid benefits to start prior to January 1, 2014, and to individuals who are subject to the non-MAGI methodologies. This does not apply to individuals subject to MAGI methodologies. For treatment of income under MAGI methodologies, see MAGI Income Methodologies 510-05-85-13.

 

When a child resides with a caretaker other than the parent, and the parent's whereabouts are known, an attempt must be made to obtain the parent's income information. When the parent's income information is received, it is necessary to determine the amount of income that is available to meet the child's needs.  The following steps describe the procedure.

 

  1. Compute a Family Coverage budget for the parent(s) and their children "living" with them, allowing the appropriate time limited income disregards. (The child who is residing with a caretaker other than the parent is not included in the parent's budget. Refer to 05-35-15(2) for a description of who is considered to be "living" with the parents.) If they pass the family Coverage budget, document that there is no excess income available to the child for whom eligibility is being pursued. The child's case can then be processed without further computations of the parent's income.  
  2. If the parent's unit fails the Family Coverage budget, compute a poverty level budget using the appropriate poverty level (100% or 133%) based on the age of the child for whom eligibility is being pursued. If they pass the poverty level budget, document that there is no excess income. The child's case can then be processed without further computations of the parent's income.
  3. If the parent's unit fails the poverty level budget, compute a medically needy budget. All excess income (client share (recipient liability)) from the medically needy budget is considered unearned income for the child and is used in the child's budget.