Temporary Assistance/Case Management Manual

IM-128 August 20, 2020; IM-155 November 21, 2002

1. Apply the two-thirds disregard to the adjusted gross income.  If more than one person has become employed while the case is active, apply the two-thirds disregard to each person’s adjusted gross income.
2. Do not apply the two-thirds disregard for longer than 12 consecutive months.  Once the two-thirds disregard is applied for 12 consecutive months, the individual is not eligible for the two-thirds disregard until the individual has not received Temporary Assistance for 12 consecutive months.
   1. When a Temporary Assistance participant has received the two-thirds disregard for 12 consecutive months, has not been off assistance for 12 months, and is approved for Medicaid only, the two-thirds disregard is not allowed again, as the claimant already had the benefit of this disregard for cash and Medicaid.
   2. For Temporary Assistance cases, when determining receipt of the two-thirds disregard for 12 consecutive months and determining 12 consecutive months off assistance.
   3. Prior receipt of four consecutive months of the $30 plus 1/3 disregard does not make and individual ineligible for the two-thirds disregard.
   4. A participant who reports a change timely but receives payments at a higher amount for an additional month(s) (for example, a hearing and hearing process take that long), receives the two-thirds disregard when determining the overpayment (unless s/he previously received the two-thirds disregard for 12 consecutive months).  Count those months for which the overpayment was computed allowing the two-thirds disregard toward the 12 consecutive months of entitlement.
3. When removing the two-thirds disregard, send the participant an adverse action notice.
4. Allow the two-thirds disregard if the individual received a cash grant and was allowed the two-thirds disregard, in any one of the last four months.  Only allow the two-thirds disregard for as many months as are remaining of the total twelve months. For example, a Temporary Assistance participant becomes employed and is eligible for a $75 grant, using the two-thirds disregard.  After receiving this grant for two months, she voluntarily terminates her cash assistance, so she won’t use up any more of the forty-five months of lifetime eligibility.

   After three months without a cash grant, she requests that her cash assistance be reinstated.  Her employment has not terminated.  Her eligibility and grant amount are determined using the two-thirds disregard. If eligible, she will continue to be allowed the two-thirds disregard for ten more months.