5165-1        EARNED INCOME DEDUCTION FOR RECIPIENTS

5165-1 A.   $90 WORK EXPENSE DEDUCTION

For the first month of eligibility, each Family Medicaid applicant in a family who is employed is entitled to a $90 work expense deduction. This work expense deduction also applies to applicants for Denali KidCare and Under-21 Medicaid.

5165-1 B.   MONTHLY EARNED INCOME DEDUCTION

For every month including the first month of eligibility, each Family Medicaid recipient in a family who is employed is entitled to a monthly earned income deduction of $150 plus 33 percent of the remaining earned income.  To be a recipient, the individual must have received Medicaid in one of the four previous months.  Count months of retroactive Medicaid eligibility when determining whether the recipient is eligible for the $150 and 33 percent deduction.  Receipt of Transitional Medicaid in one of the previous four months does NOT entitle a family member to the $150 plus 33 percent deduction unless they could have been FM Family Medicaid eligible in one of those months.  This earned income deduction is not given to Denali KidCare or Under 21 Medicaid applicants or recipients.

Note:

Applicants who received Medicaid in another state ”start fresh” if they are eligible here.  They are eligible only for the $90 work expense deductions.  They are not eligible for the $150 and 33% earned income deduction in the first month of eligibility.