PM 15-04-03-a: AABD Income Disregard (Community Cases)

WAG 15-04-03-a.

The first $25 of earned or unearned income, other than SSI income and contributions, is exempt when determining eligibility for medical. If total income is less than $25, exempt the actual amount.

An additional $25 disregard is allowed from a spouse's or dependent child's income if the spouse or dependent child is included in the Income Standard and is an applicant or client in another AABD Medical case.

In determining if a person applying for or receiving AABD Medical is eligible to receive the $25 income exemption, income of other persons included in the standard is not considered a contribution. A contribution is income received from a person outside the medical unit (i.e., child support, alimony).

For example:

  • If only one person is applying for or receiving AABD Medical, regardless of how many persons in the standard have income, only one $25 exemption is allowed.
  • If 2 persons in the standard are applying for or receiving AABD Medical, one $25 income exemption is allowed if only one person has income other than SSI or contributions. Two $25 income exemptions are allowed if both persons have income other than SSI or contributions.
  • If 3 persons in the standard are applying for or receiving AABD Medical, one $25 income exemption is allowed if only one person has income other than contributions. Two $25 income exemptions are allowed if 2 persons have income other than SSI and contributions. Three $25 income exemptions are allowed if all 3 persons have income other than SSI or contributions.

If the person applying for or receiving AABD Medical has no income other than SSI or contributions, and another person included in the standard has income, deduct one $25 exemption even if the other person receives benefits under one of the Family Health Plans.

If the other person is also applying for or receiving AABD Medical, deduct only one $25 income exemption unless both persons have income other than SSI and contributions.

If both persons are applying for or receiving AABD Medical and both have income other than SSI or contributions, deduct two $25 income exemptions. If only one person is applying for or receiving AABD Medical and both have income other than SSI or contributions, deduct only one $25 income exemption.