Medicaid for the Elderly, Blind or Disabled

Income Credits

1. $65 and ½ (one half) Earned Income Credit

2. Community Waivers (Group B) Basic Needs Credit

3. Community Waivers Personal Maintenance Credit

4. Cost Associated with Real Property Credit

5. Depreciation

6. Excess Self-Employment Expenses Credit

7. Fees to Guardians or Attorneys Credit

8. Health Insurance Premiums Credit

9. Impairment Related Work Expenses (IRWE) Credit

10.  Maintaining Home/Apartment Credit

11. Medical/Remedial Expenses (MRE) Credit

12. Personal Needs Credit for Institutional Medicaid

13. Special Exempt Income

14. Standard Credit

15. Support Payments Credit

16. 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 credit.

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:

1. $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.

2. Community Waivers (Group B) Basic Needs Credit — As of 2013, this allowance is $890.
    
3. Community Waivers Personal Maintenance Credit — This allowance is for room, board, and personal expenses, and it consists of three components.

The sum total of these three components cannot exceed $2,130.

4. 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 sale.
    
5. 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 tax forms.
    
6. Excess Self-Employment Expenses Credit — When there is more than one self-employment business the losses of one can offset the profits of another.
    
7. Fees to Guardians or Attorneys Credit — Court-ordered 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.
    
8. 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 premium payment.

9. Impairment Related Work Expenses (IRWE) Credit — These are costs you may expect to incur due to your impairment and employment.

Examples of IRWE related work expenses are:

• Modified audio/visual equipment,
• Typing aides,
• Specialized keyboards,
• Prostheses,
• Reading aids,
• Vehicle modification (plus installation, maintenance, and associated repair costs),
• Wheelchairs.

10. 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.

11. 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 Deductible plan.

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.

12. Personal Needs Credit for Institutional Medicaid — This credit is $45.
     
13. Special Exempt Income — Income used for supporting others:

• 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 9)

14. Standard Credit — This credit is $20.
     
15. 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.
     
16. 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.

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Last Revised: February 06, 2013