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FMAP-Related Financial Eligibility - Deductions - Iowa

The various FMAP-related coverage groups are listed below. The deductions are listed in the order in which the allowable deductions are applied.

·           FMAP Deductions

·           CMAP Deductions

·           MAC Deductions

·           Medically Needy Deductions

FMAP DEDUCTIONS

Deductions from income for the Family Medical Assistance Program (FMAP) are as follows:

From earned income:

1. 20% earned income deduction* 

2.        Adult or child care expenses. Maximum is $175 per month for child age 2 or older; $200 per month if under 2.

3.        Applicable diversions for persons not in the home

4.        Diversions for an ineligible or excluded person’s needs, if appropriate

5.        50% work incentive deduction*

From unearned income:

1.   The cost of producing unearned income.

Subtract the deductions in the order listed from earned income first. Do not allow the 50% deduction when determining initial eligibility under the standard of need test (Test 1) or standard of living cost test (Test 2). (See FMAP-Related Limits for more information about the three tests.)

When the person whose income must be counted has both countable earned and unearned income, and the earnings are less than the allowable deductions, subtract any unused portion of deductions 3 and 4 from the unearned income. Consider the balance to be countable income.

(For details, see the Iowa Dept of Human Services Employees’ Manual Title 8 Medicaid, Chapter E, Income, FMAP-Related Deductions.)

* People eligible for the 20% earned income deduction and the 50% work incentive deduction are:

·           People in the eligible group

·           Parents who are ineligible because of their alien status

·           Parents who are excluded from the eligible group because they failed to apply for or furnish a social security number for themselves

·           Ineligible stepparents

·           Self-supporting parents of the minor parent.

CMAP DEDUCTIONS

From earned income:

1.   20% earned income deduction.

2.   Child care expenses. Maximum is $175 per month for child age 2 or older; $200 per month if under 2.

3.   Applicable diversions for persons not in the home

4.   Diversions for an ineligible or excluded person’s needs, if appropriate

From unearned income:

1.   The cost of producing unearned income.

Subtract the deductions in the order listed from earned income first.

When the person whose income must be counted has both countable earned and unearned income, and the earnings are less than the allowable deductions, subtract any unused portion of deductions 3 and 4 from the unearned income. Consider the balance to be countable income.

(For details, see the Iowa Dept of Human Services Employees’ Manual Title 8 Medicaid, Chapter E, Income, FMAP-Related Deductions.)

MOTHERS AND CHILDREN (MAC) DEDUCTIONS

From earned income:

1.   20% earned income deduction *

2.   Child care expenses. Maximum is $175 per month for child age 2 or older; $200 per month if under 2.

3.   Applicable diversions for persons not in the home

4.   Diversions for an ineligible or excluded person’s needs, if appropriate

From unearned income:

1.   The cost of producing unearned income.

Subtract the deductions in the order listed from earned income first.

When the person whose income must be counted has both countable earned and unearned income, and the earnings are less than the allowable deductions, subtract any unused portion of deductions 3 and 4 from the unearned income. Consider the balance to be countable income.

(For details, see the Iowa Dept of Human Services Employees’ Manual Title 8 Medicaid, Chapter E, Income, FMAP-Related Deductions.)

* People eligible for the 20% earned income deduction are:

·           People in the eligible group

·           Parents who are ineligible because of their alien status

·           Parents who are excluded from the eligible group because they failed to apply for or furnish a social security number for themselves

·           Ineligible stepparents

·           Self-supporting parents of the minor parent.

FMAP-RELATED AND CMAP-RELATED MEDICALLY NEEDY

From earned income

1.   20% earned income deduction*

2.   Child care expenses. Maximum is $175 per month for child age 2 or older; $200 per month if under 2.

3.   Applicable diversions for persons not in the home

4.   Diversions for an ineligible or excluded person’s needs, if appropriate

From unearned income:

1.   The cost of producing unearned income.

Subtract the deductions in the order listed from earned income first.

When the person whose income must be counted has both countable earned and unearned income, and the earnings are less than the allowable deductions, subtract any unused portion of deductions 3 and 4 from the unearned income. Consider the balance to be countable income.

(For details, see the Iowa Dept of Human Services Employees’ Manual Title 8 Medicaid, Chapter J, Medically Needy, FMAP-Related and CMAP-Related Cases)

* People eligible for the 20% earned income deduction are:

·           People in the eligible group

·           Parents who are ineligible because of their alien status

·           Parents who are excluded from the eligible group because they failed to apply for or furnish a social security number for themselves

·           Ineligible stepparents

·           Self-supporting parents of the minor parent.

See Also:

·           Family Medical Assistance Program (FMAP) Overview

·           Overview of Medical Assistance in Iowa

·           Welcome and Introduction to Benefits in Iowa

Source: Iowa Dept of Human Services Employees’ Manual

Title 8 Medicaid

·                        Chapter E, Income, Income Policies for FMAP-Related Coverage Groups

·                        Chapter J, Medically Needy

Legal citations: 441 IAC 75.57(1), 441 IAC 75.57(2), 441 IAC 75.57(2)"a", 441 IAC 75.57(2)"b"(1), 441 IAC 41.27(2)"b", 441 IAC 75.57(2)"c"

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