Medicaid for the Elderly, Blind or Disabled
$65 and ½ (one half) Earned Income Credit
Community Waivers (Group B) Basic Needs Credit
Community Waivers Personal Maintenance Credit
Cost Associated with Real Property Credit
Self-Employment Expenses Credit
Guardians or Attorneys Credit
Impairment Related Work Expenses (IRWE) Credit
Medical/Remedial Expenses (MRE) Credit
Personal Needs Credit for Institutional Medicaid
Special Exempt Income
Support Payments Credit
Self-Support Plan Credit
The Medicaid plan you are enrolled in is based on your countable
income. Countable income is your gross income minus allowed credits.
The credits subtracted from your income will vary depending on the plan
you are enrolled in.
The credit needs to meet the rules of the Medicaid plan you are
enrolled in. You must provide proof/verification of the expense to get
The credits you receive will determine if you are able to enroll in
Medicaid and what plan. It will also determine if you will have a cost
share. The following pages will list which of the following credits you
may be able to get and how it is calculated.
Please Note: Income and asset amounts may change each year.
You can get current amounts by contacting your agency or by calling
Member Services at 1-800-362-3002.
The credits you may be able to get are:
- $65 and ½ (one half) Earned Income Credit This credit
is only available to people with job income or wages. The $65 and ½
credit is calculated by subtracting $65 from your monthly gross job
income and wages, then dividing the remaining amount by two, then
adding back the $65.
For example: If your monthly gross income from employment is $500,
your credit would be $ 282.50.
- Community Waivers (Group B) Basic Needs Credit As of
2013, this allowance is $890.
- Community Waivers Personal Maintenance Credit
allowance is for room, board, and personal expenses, and it consists
of three components.
||Waivers Basic Needs Credit
||65 and ½ Earned Income Credit
||Special Housing Credit
The sum total of these three components cannot exceed $2,130.
- Cost Associated with Real Property Credit If you are
residing in a nursing home and own property that is listed for sale,
you can use some of your income to pay for minimal heat and
electricity costs to avoid damage to the home while it is listed for
- Depreciation If self-employed, you may be able to
deduct depreciation from your self-employment income. The amount of
the depreciation credit is the same as the amount you claim on your
- Excess Self-Employment Expenses Credit When there is
more than one self-employment business the losses of one can offset
the profits of another.
- Fees to Guardians or Attorneys Credit
guardian and/or attorney fees paid directly out of your monthly
income. Costs paid by you for establishing and maintaining a court-ordered guardianship or protective placement for yourself.
- Health Insurance Premiums Credit The cost of health
insurance premiums you are obligated to pay for your or your spouse
may be subtracted.
If you and a spouse apply, but only one pays the premium, divide the
premium equally. Prorate premiums over the months the payments cover.
Please Note: For Institutional cases, the member does not get
credit for a premium deduction if they are not responsible for the
- Impairment Related Work Expenses (IRWE) Credit These
are costs you may expect to incur due to your impairment and
Examples of IRWE related work expenses are:
- Modified audio/visual equipment,
- Typing aides,
- Specialized keyboards,
- Reading aids,
- Vehicle modification (plus installation, maintenance, and
associated repair costs),
- Maintaining Home/Apartment Credit If you are in a
medical institution and you have an apartment or house, you may be
able to get a credit for the cost of maintaining the home, if:
- Your doctor certifies (verbally or in writing) that you are
likely to return to the home or apartment within six months, and
- Your spouse is not living in the apartment or home.
- Medical/Remedial Expenses (MRE) Credit
These costs are
used in the home and community based waiver programs (HCBW) for cost
share and premium calculations for the Medicaid Purchase Plan. They
are also used to see if you may be able to enroll in the Medicaid
Medical expenses are services or goods prescribed or provided
by a licensed professional medical practitioner. The amount of the
credit are expenses for diagnosis, cure, treatment, or prevention of
disease or for treatment affecting any part of the body.
Remedial expenses are costs for goods or services that are
provided for the purpose of remedying, relieving, or reducing a medical
condition. You will only get a credit for the costs that you are
required to pay and not paid by any other source, such as Medicaid,
private insurance or your employer.
Your care manager or an agency worker can help you in calculating
your medical/remedial expenses.
- Personal Needs Credit for Institutional Medicaid This
credit is $45.
- Special Exempt Income Income used for supporting
- Court-ordered attorney fees
- Court-ordered guardian and guardian ad litem fees
- Legal Expenses Credit: The expense for establishing and
maintaining a court-ordered guardianship or protective placements,
including court- ordered attorney or guardian fees.
- Expenses associated with a Self-Support Plan (see 16)
- Impairment Related Work Expenses (IRWE) (see
- Standard Credit This credit is $20.
- Support Payments Credit Support payments are payments
which a Medicaid EBD member makes to another person outside of the
home for the purpose of supporting and maintaining that person.
These payments can be either court-ordered or non-court-ordered.
- Self-Support Plan Credit A member whose enrollment is
based on blindness or disability may
get a credit for an approved self-support plan.
To qualify for this credit, the member must perform in accordance
with a plan that is:
- Specific, current, and in writing, and
- Approved by the county or tribal agency.
Back to Table of Contents
Next Income/Asset Rules
Previous Enrollment Date
February 06, 2013