MEMORANDUM

DATE:          March 21, 2005

TO:               All Adult Public Assistance Manual Holders

FROM:         Policy and Program Development Team

                      Ellie Fitzjarrald, Chief

SUBJECT: Adult Public Assistance Manual Change #10

This manual change implements new policy on estimating income and changes to the student earned income exclusion.  It also includes an updated index, and makes other technical changes.  Highlights of these policy revisions are described below.

If you have any questions, please contact any member of the Policy and Program Development Team at 465-3347 or e-mail us at dpapolicy@health.state.ak.us.  

Estimating Income

Two recent fair hearing decisions identified an inconsistency between our policy and the federal food stamp regulations for estimating income in the application month.  This change corrects that policy.   Application month income will no longer be determined based on the amount of income received by the interview date.  Instead, the policy for estimating income will be the same for the application month and subsequent months.  

In addition, we have clarified and simplified the manual sections. The conversion factors section is simplified by addressing only the two factors that truly convert income to a monthly amount – bi-weekly 2.15 and weekly 4.3, i.e., the third and fifth paycheck situations.

We are adopting these changes for the Food Stamp, APA , ATAP Alaska Temporary Assistance Program and Family Medicaid programs, so that policy is still aligned, with one exception.  The Family Medicaid program prohibits the use of conversion factors when converted income causes Medicaid ineligibility.  

The new policy for estimating income in the application months may be applied right away, however, it must be applied to all applications processed on and after May 1, 2005.

Student Earned Income Exclusion

As a result of a change in federal law, the student earned income exclusion that previously applied only to dependent children under the age of 22 has been changed to exclude the earned income of any student under the age of 22, including those who are married, emancipated, or considered as head of household.

OVERVIEW OF CHANGES

MS Manual Section 440-4, Determining the Household’s Monthly Income

• Clarifies the policy for determining the household’s monthly income

• Reorganizes and expands some sections to better explain how averaging is used in converting and estimating income

• Revises the conversion factors policy

• Includes a reminder that Family Medicaid policy requires the worker to determine Medicaid eligibility by disregarding the third or fifth payment if using converted income causes the household to exceed the Medicaid income limit.

• Replaces the estimating income in application month policy with expanded sections on policy for estimating full and partial month’s income.

• Updates policy on using work schedules instead of pay history to apply to any situation when changes occur that result in the pay history no longer reflecting the income the individual expects to receive.

MS Manual Section 442-2D, Student Earned Income Exclusion

• Permits the student earned income exclusion to apply to any individual under age 22 who is a student.

Manual Change Filing Instructions