IM-057 POLICY UPDATE FOR MAGI HOUSEHOLD COMPOSITION WHEN ADDING A PERSON

DISCUSSION:

This memorandum provides updates to the examples in memo IM-#148 dated 11/28/2017. All examples provided in memo IM-#148 should be disregarded. Memo IM-#148 provided clarification to MAGI Policy Manual section, 1885.010.00 Adding a Person.

Examples in this section have been updated to correct MAGI household composition when an individual is included in multiple MAGI households.

• When someone who physically resides in their home, that individual’s MAGI household composition will include all of the tax filer’s dependents even if the other dependents live outside of the home claims an individual under age 19 as a tax dependent.
  

  EXAMPLE: Joe lives with his mother who is his custodial parent. His father, Frank, and stepmother, Jane, claim Joe as a tax dependent along with their other three children. Frank and Jane’s other three children all receive MHK. Since Joe is Frank and Jane’s tax dependent, he is included in the other three children’s MAGI households when determining their eligibility for MHK benefits. Joe receives MHN coverage in his mother’s household under non-filer rules.

• When someone who physically resides outside of their home claims an individual under age 19 as a tax dependent, the individual’s MAGI household composition will be determined by non-tax filer rules.
  

  EXAMPLE: (continued from above) Joe resides with his mother, Stephanie and his half-sibling, Jon. Stephanie is a tax filer and intends to only claim Jon as a tax dependent. Joe will be claimed by his father, Frank, who resides outside of the home. Joe’s MAGI household composition is determined by non-tax filer rules since an individual living outside of the home claims him. Joe’s household consists of himself, Stephanie, and Jon. Jon’s MAGI household consists of two, himself and Stephanie.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

PL/ks