MO HealthNet for the Aged, Blind, and Disabled

0805.020.15 DEEMING PARENTAL INCOME

IM-166, December 11, 2020; IM-#172 December 02, 2019IM-35 March 21, 2013, IM-73 November 30, 1993

If the disabled child meets the definition of living in the home with a natural or adoptive parent, deem income from the parent(s).  Do not deem the income of any other persons in the home, including a stepparent.

EXCEPTIONS:  Do not deem parental income if the parent or spouse of the parent is receiving Title XIX under a MA non-spenddown case.  Do not deem income of a parent receiving cash public assistance: Temporary Assistance cash, SSI, SAB, SP, Refugee Assistance, Disaster Relief Act of 1974, general assistance programs of the Bureau of Indian Affairs, and Veteran’ Administration pensions.

For MO HealthNet for Disabled Child (MHDC) spend down, incurred medical expenses, not subject to payment by a third party, of the following may be used to determine if the disabled child meets spend down:

  • the disabled child, and
  • the disabled child’s natural or adoptive parent/s whose income is used in determining eligibility.

NOTE: This does not include a stepparent because under Missouri law stepparents are not legally liable for the support of step children.

Use the following method for deeming income from parents to disabled children:

  1. Determine an allocation for each minor child (under age 18) who is living in the home and who is not applying for MA.  Do not include an allocation for any child who receives cash public assistance: Temporary Assistance cash, SSI, Refugee Assistance, Disaster Relief Act of 1974, general assistance programs of the Bureau of Indian Affairs, and Veteran’ Administration pensions.  Determine the allocation by subtracting the SSI maximum for one person from the SSI maximum for two persons.  For each child who is receiving an allocation, deduct that child’s own income to determine the final amount of the allocation.
  2. Determine the parental income, earned and unearned.  Income exclusions in Section 0805.015.10 deduction of overhead expenses in Section 0805.015.15 apply to the parents’ income.  Do not consider payments from the Missouri Family Trust Fund made to the parent for the disabled child as income of the parent or child.
  3. Subtract the allocation determined in Step 1 from the parental unearned income.  If the allocation is greater than the unearned income, or if there is no unearned income, subtract the excess allocation from the parental earned income.
  4. Subtract the $20 personal income exclusion from any remaining parental unearned income.  If the remaining unearned income is less than $20, subtract the remainder of the $20 from the parental earned income.
  5. Subtract $65 from the remaining earned income.
  6. Subtract one-half of the remaining earned income from the result of Step 5.
  7. Add any unearned income remaining from Step 4 to the result of Step 6.
  8. Subtract the parental living allowance from the result of Step 7.  The parental living allowance is the SSI maximum for the number of parents in the home whose income was used in deeming.
  9. The amount in Step 8 must be deemed to the disabled children in the home who are applying for MHDC. If there is more than one disabled child, divide the deemed income equally among them.

Example #1: Mrs. Boulanger has two children, Marie and Jane. She is applying for MHDC benefits for Marie. Jane has no income; Marie receives $140.00 OASDI from her father’s account. Mrs. Boulanger receives $418.00 OASDI benefits from her deceased husband’s account. She also earns $2,297.00 per month.

SSI maximum for two persons $  1191
SSI maximum for one person – $  794
Maximum allocation per non-MHDC child $  397
   
Total allocation for Jane $  397
   
Parent’s unearned income $  418
Total allocation for Jane – $  397
  $     21.00
Personal income exclusion – $    20.00
Remainder of unearned income $    1.00
   
Parent’s earned income $2297.00
Standard earned income exemption – $     65.00
  $2232.00
Subtract half – $1116.00
  $1116.00
Add remainder of unearned income $     1.00
Total net income $1117.00
SSI maximum for one  
(The number of parents in the home) – $   794
Amount to deem to Marie $   323

Example #2:  Mr. and Mrs. Johnson apply for their disabled child, Kay. They have two other children, Cindy and Denise. Cindy receives OASDI benefits of $258.00. Denise has no income. Mr. and Mrs. Johnson have gross unearned income of $452.00 and gross earned income of $2382.00

SSI maximum for two persons $  1191
SSI maximum for one person – $   794
Maximum allocation per non-MHDC child $  397
   
Cindy’s allocation ($392-258) $     139.00
Denise’s allocation $   397
Total allocation for non-MHDC children $   536
   
Parent’s unearned income $   452.00
Total allocation for non-MHDC children – $   536
Remainder of unearned income $        0
Leftover allocation not taken out of  
parent’s unearned income $       84
   
Parent’s earned income $2382.00
Leftover allocation – $       84.00
  $2298
Personal income exclusion – $     20.00
  $2278.00
Standard earned income exemption – $    65.00
  $2213.00
Subtract half – $   1106.50
  $  1106.50
SSI maximum for two  
(The number of parents in the home) – $   1191.00
Amount to deem to Kay $   0.00