zz – Obsolete

0905.012.70.10 $30 Plus 1/3 of Earned Income Disregard – OBSOLETE

Employed members of the assistance group are entitled to a time-limited disregard of $30 plus 1/3 of earned income on the net income limit test.  Apply the $30 plus 1/3 disregard to net income after deducting the standard work exemption from adjusted gross income. If more than one person has earned income, apply the $30 plus 1/3 disregard to each person’s net income. Add together the $30 plus 1/3 disregard amount from each person’s income.

Do not apply the $30 plus 1/3 disregard for longer than four consecutive months.  Once the $30 plus 1/3 is applied for four consecutive months, the individual is not eligible for the $30 plus 1/3 disregard until the assistance group has not received Medical Assistance for Families or MC+ for Children for 12 consecutive months. Months in which the parents are receiving TMA count as months off MAF.

NOTE:  An adverse action notice is required if removing the 30 and 1/3 disregard adversely affects eligibility. Families losing eligibility for MAF solely because the 30 and 1/3 disregard can no longer be applied must have eligibility explored under Transitional Medical Assistance.  (Refer to Section 0910.000.00 )

Determining 4 consecutive months of $30 plus 1/3 disregard:

When determining if the assistance group has received the $30 plus 1/3 disregard in MAF/MC+ for Children (NON-CHIP) and MPW for four consecutive months, exclude any prior quarter months.

If subtracting the standard work exemption results in zero net income, then the individual has not received benefits of the $30 plus 1/3 disregard for that month.  When this occurs for one or two months BUT THE EMPLOYMENT SITUATION HAS NOT CHANGED, do not count the months this happens against the four months of the disregard.  This also does not interrupt the counting the four months of receipt of the $30 plus 1/3 disregard.  This may happen when one or two pay periods are missed, but the employment situation has not changed.

An individual requesting withdrawal from assistance intending to avoid using the fourth consecutive month of the $30 plus 1/3 disregard, is deemed to have received it and thus is not eligible for the $30 plus 1/3 disregard until off MAF/MC+ (NON-CHIP) for 12 consecutive months.

If a recipient who reports a change timely receives an overpayment as a result of a hearing request, etc., the $30 plus 1/3 disregard is applied when determining the overpayment (unless they previously received the disregard).  Count those months for which the overpayment was computed allowing the $30 plus 1/3 disregard toward the four consecutive months of entitlement.

Example:  Ms A. is approved for MAF effective January 1, 2003 on January 20, 2003.  February 1st she reports an increase in her hours of employment.  Allowing the $30 plus 1/3 disregard, the family is ineligible for MAF.  As she hasn’t received three months of MAF, she is not TMA eligible.  The children qualify for MC+ for Non-CHIP Children.  MC+ for Children (NON-CHIP) eligibility is determined allowing $30 plus 1/3 as she only received 2 months of the disregard under MAF and is entitled to two more months.

Example:  Mrs. B.’s children were approved for MC+ for Children (NON-CHIP) effective March 8, 2003.  During April she reported she had a reduction in income. MAF full need eligibility test completed and the family now qualifies for MAF.  When considering 4 months $30 plus l/3 disregard, she would have received under MC+ for March and April and would be entitled to 2 more months under MAF.

Example:  Mrs. C’s was approved MC+ for Children (CHIP) for her children on Sept. 2002.  She reported a loss of income on March 2, 2003 and the family passed the MAF full need eligibility test.  Since the $30 plus 1/3 disregard does not apply to the CHIP program, she is entitled to 4 months $30 plus 1/3 when determining MAF eligibility.

Example:  Mrs. D.’s family lost eligibility for MAF and was switched to TMA effective October 1, 2002.  In Sept. 2003, she successfully completes her 12 months of TMA and is about to be moved to ETMA when she reports her income had been reduced.  She passes the full need eligibility budget.  She is considered to have been off assistance for 12 months, and, therefore is eligible for another 4 months of $30 plus 1/3 disregard.

Determination of 12 months off assistance:

If the person previously received the disregard for four consecutive months, s/he must have been off assistance for 12 months before receiving the disregard again.

Receipt of MC+ (CHIP) or TMA are considered as months off assistance when determining if the family is entitled to 30 and 1/3 disregard.