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MAC Countable Income - Iowa

When determining the amount of income to compare to the applicable poverty level, apply the following income deductions in the order listed. Follow FMAP policy when determining the amount allowed for each deduction.

1. 20% earned income deduction.

2. Child care expenses that have been verified.

3. Court-ordered current or back child support for any persons not living in the home.

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

When considering the income of a stepparent in the home, apply the following income deductions in the order listed:

1. 20% earned income deduction.

2. Child care expenses for the stepparent’s ineligible dependents, including the common child that have been verified.

3. Any verified amount paid for dependents not living in the home who are or could be claimed as dependents for federal income tax purposes.

4. Verified child support and alimony paid to a person not living in the home.

5. A diversion to meet the needs of the stepparent and the stepparent’s ineligible dependents living in the home, including the common child, based on the FMAP schedule of living costs.

Examples (using 1999 poverty levels):

1. Ms. A is applying for Medicaid for her one-month-old son. Ms. A’s gross monthly earned income is $1,700. She has no child care expenses. To determine MAC eligibility, consider Ms. A’s income as follows:

$ 1,700  Gross monthly income

- 340 20% earned income deduction 

$ 1,360  Net earned income

Since Ms. A’s net earned income is less than $1,673 (185% of the poverty level for a two-member household), her son is eligible for MAC coverage.

2. Ms. B has applied for Medicaid for her four-month-old daughter. She receives social security disability benefits of $575 per month, and her daughter receives social security benefits of $200 per month. The absent parent also pays $500 per month in child support. To determine eligibility for MAC coverage, consider income as follows:

$ 575  Ms. B’s SSD

$ 200  Child’s SS

$ 450  Child support ($50 is not counted)

$ 1,225 Total unearned income

Since the unearned income does not exceed $1,673 (185% of the federal poverty level for a two-member household), the daughter is eligible for MAC.

3. The same as Example 2, except that Ms. B’s daughter is 18 months old. To determine eligibility for the 18-month-old child, the worker compares $1,225 to $1,203 (133% of the federal poverty level for a two-member household).

Since the income exceeds 133% of poverty, the child is not eligible for MAC coverage. However, the worker examines the child’s eligibility under Medically Needy.

4. Ms. T applies for Medicaid for her six-month-old son. The household’s only income is $600 monthly in child support payments. Ms. T’s child is eligible for MAC coverage, since the countable income of $550 ($600 minus $50 child support exemption) does not exceed 185% of the federal poverty level for a two-member household.

If the family income exceeds 133% of the federal poverty level for a two-member household when the child turns one year old, the worker will cancel MAC eligibility and examine eligibility under Medically Needy.

5. Mrs. Z applies for Medicaid for her one-year-old daughter. Mr. Z, a stepparent, is also in the home. Mr. Z has earnings of $1,700 per month. Mrs. Z has no income. In determining MAC eligibility, the worker considers the income as follows:

$ 1,700 Mr. Z’s earned income

- 340 20% earned income deduction 

- 365 Diverted to meet needs of stepparent (FMAP Schedule of Living Costs for one person) 

$ 995 Countable Income 

Since the countable income does not exceed $1,203 (133% of federal poverty level for a two-member household), the child is eligible under the MAC coverage group.

See Also:

·           MAC Income Limits

·           MAC Resource Limits

·           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 F, Coverage Groups, Mothers and Children (MAC) Program

Legal reference: 441 IAC 75.1(28)"a"(1), 76.57(4), 75.57(8)

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