MEMORANDUM

DATE:              January 2, 2002

THROUGH:     Jim Nordlund, Director

                           Division of Public Assistance

FROM:             Bob Labbe, Director

                          Division of Medical Assistance

RE:                   Medical Assistance Manual Change #24

The Division of Medical Assistance wishes everyone a happy and prosperous New Year!  We are pleased to finally present the long awaited Medical Assistance Manual Change #24.  Many thanks to everyone who contributed time to review the numerous updates we have made in this manual.

This manual change integrates all AFDC Aid to Families with Dependent Children policy inherited by Family Medicaid and related categories.  All Family Medicaid financial and non-financial eligibility policy is now in this manual. Reference to the AFDC Aid to Families with Dependent Children manual is no longer required for administration of Family Medicaid.  This manual change also includes the new policies adopted as part of the prospective budgeting policy alignment initiative with Temporary Assistance and Food Stamps. Because of the extensive revisions, several sections are new or reorganized.  Systems Operations has updated the Medicaid notices to cross-reference these new manual sections.  You will also notice we are using common language across programs whenever possible.

The alignments include:

• Resources limits

• Property for sale

• Exclusion for charitable contributions

• Earned income of dependent children

• Non-recurring lump sum income

• Child Support payments

The detailed changes to Medical Assistance policies are listed below.  

5000 –Introduction to Medicaid

This section reorganized.  Identifies the five major parts of the manual.  

5002 General Medicaid Provisions

New section (previously section 5010).

5005 Application and Review Process

This section reorganized.

5006 Notices

New section (previously in section 5180).  Replaces AFDC Aid to Families with Dependent Children Manual Section 382.

5007 Continuous Eligibility for Children

Updates language to include continuous period of eligibility ends when child enters a penal institution.

5008 Retroactive Eligibility

New section (previously in section 5080).  Clarifies methodology on retroactive Medicaid determinations.  

5010 Non-Financial Factors of Eligibility

This section reorganized (previously General Medicaid Provisions).

5011 United States Citizenship

New section (previously in section 5800).  Adds policy information on the Child Citizenship Act of 2000, and Victims of Trafficking and Protection Act of 2000.

5012 Alaska Residency

New section (previously in section 5110).

5013 Age

New section (previously in section 5112).

5014 Social Security Enumeration

New section (previously in section 5135).

5015 Assignment of Rights

This section reorganized (previously Non-Financial Eligibility Section).

5020 Financial Eligibility

Removes section on Excess Averaging of Non-Recurring Lump Sums.  Deletes excess averaging policy.  Non-recurring lump sum payments are now exempt as income and counted as a resource in the month of receipt.

5080 Retroactive Medicaid Eligibility

This section removed.  Retroactive Medicaid policy is now included in section 5008.

5110 Alaska Residency

This section removed.  Alaska Residency policy is now included in section 5012.

5112 Age

This section removed.  Age policy is now included in section 5013.

5135 Social Security Enumeration

This section removed.  Social Security Enumeration policy is now included in section 5014.

5150 Resources

Replaces AFDC Aid to Families with Dependent Children Manual Section 350.  This section also refers to the new resource limits of $2,000 or $3000 if the household includes an individual who is 60 years of age or older.

5154 Exempt Resources

Replaces AFDC Aid to Families with Dependent Children Manual Section 353.

5156 Special Resource Provisions

Replaces AFDC Aid to Families with Dependent Children Manual Section 352.  Lump sum payments are treated as a resource in the month of receipt.  Excess averaging policy is eliminated.

5160 Income

Replaces AFDC Aid to Families with Dependent Children Manual Section 360.  Adds policy guidance on disregarding extra 3rd and 5th paychecks.  Adds policy guidance for alien sponsor deeming with affidavits of support.

5161 Exempt Income

Replaces AFDC Aid to Families with Dependent Children Manual Section 364.  Adds new policy exempting non-recurring Lump Sum payments as income.  Adds new policy on Americorps stipends and living expense payments to count as earned income.

5162 Unearned Income

This section reorganized (previously Earned Income).  Replaces AFDC Aid to Families with Dependent Children Manual Section 360-2.  Adds new policy exempting charitable contributions from private, non-profit organizations, up to $300 per quarter.  Adds policy guidance on Military housing allowances.

5163 Earned Income

New section (previously section 5162).  The Job Training Partnership Act (JTPA) was replaced by the Workforce Investment Act.  Adds new policy to exempt the earned income of a dependent child who is enrolled in school at least half time.

5164 Earnings from Self-Employment

This section reorganized.  Replaces AFDC Aid to Families with Dependent Children Manual Section 361-4.

5165 Income Disregards

New section (previously section 5164).  Adds new policy for allowing child support payments only if the parent who has this expense also has their needs or income included in the eligibility determination.  Adds policy on how to apply disregards to applicants who received Medicaid in another state.  The household starts “fresh” and is not eligible for the $150 and 33% in first month of eligibility.

5166 Special Treatment of Income

This section removed.  Special Treatment of Income policy is now included in section 5162.

5168 Excluded Income

This section removed.  Excluded Income policy is now included in section 5161.

5170 Special Types of Case Processing

This section removed.  Special Types of Case Processing policy is now included in section 5014.

5172 Income Eligibility

This section replaces AFDC Aid to Families with Dependent Children Manual Section 380.  Provides Medicaid Need Standards for 2002.

5180 Notices

This section removed.  Notices policy is now included in section 5006.

5185 Case Changes and Maintenance

This section reorganized.  Adds policy guidance on change reporting requirements, acting on changes, effect of changes on other programs and special reviews.

5220 Transitional Medicaid

Adds new policy for allowing child support payments only if the parent who has this expense also has their needs or income included in the Transitional Medicaid eligibility determination.  

5800 Breast/Cervical Cancer Medicaid Eligibility

New section (5800 previously Citizenship and Alien Status).  Citizenship and Alien Status policy is now included in section 5011.  Adds policy guidance on Breast/Cervical Cancer eligibility and coverage.

MANUAL CHANGE INSTRUCTIONS

Remove old pages and replace with new pages as indicated below:

 If you have any questions, please contact the Division of Medical Assistance by email at dmapolicy@health.state.ak.us, or call us at 465-3355.  Your comments and suggestions are always welcome.