STATE OF ALASKA

Department of Health and Social Services

Division of Public Assistance

TRANSMITTAL NUMBER:  MC Manual Change #49

MANUAL:  Family Medicaid

DATE:  April 1, 2011

We are making several changes to incorporate new policy, clarify existing policy, and align policies within our program policy manuals.  These changes include:

1. • Clarifying that verification of citizenship includes verification of both citizenship and identity.  It is not necessary to verify citizenship and identity again unless is becomes questionable.
   • Clarifying when a new CSSD1603a is required.
   • New policy excluding federal income tax returns as income in the month of receipt and as a resource for 12 months from the date of receipt.  
   • New policy exempting any deposits or funds held in Individual Indian Money accounts as income and resources.
   • New policy clarifying new members entering a recipient household are considered recipients for purposes of the earned income deduction.

Other changes are either technical in nature or clarifications that are the result of policy questions or suggestions from the field.

Highlights of these policy revisions are described below. If you have any questions please contact the Policy and Program Development Team at 465-3382 or email dpapolicy@alaska.gov.

OVERVIEW OF CHANGES

5005-7A  Review Requirements

1. • Clarifies that a full review is required every 12 months unless the child's DKC Denali KidCare eligibility will end before the 12-month period expires (for example, when the child will reach age 19 before the end of a 12-month period).  

5011-6A  Verification of U.S. United States Citizenship and Identity is not Required for:

1. • Clarifies that verification of citizenship includes verification of both citizenship and identity.

5011-6B  Acceptable Documentation

1. • Clarifies that once a person's citizenship and identity is documented and recorded, it is not necessary to verify citizenship and identity again unless it becomes questionable.

5016-4A  What is Non-Cooperation

1. • Removes “within 10 days” from the first bullet as the section does not differentiate between applicant, recipient, etc.

5016-4C  Failure to Complete a Child Support Information Form (CSSD Child Support Services Division 1603A)

1. • Clarifies that a new CSSD 1603a Child Support Information Form is not required when a former recipient reapplies for benefits within 30 days of case closure.
   • Clarifies that the M301 may also be used to allow clients the opportunity to claim good cause when other items are needed.  

5154-6  Other Exclusions

1. • Adds a new policy that requires federal income tax returns to be excluded as a resource for 12 months from the date of receipt.  

5156-2  Non-Recurring Lump Sum Payments

1. • Adds “Non-Recurring” to the subsection title to align with FM Family Medicaid MS Manual Section 5161-19.

   • Removes income tax refunds as a type of non-recurring lump sum payment.

5156-3  Conversion or Sale of a Resource

1. • Removes income tax refunds from the examples of refunds or reimbursements that appear to produce countable income.  

5156-10  Other Exclusions of Payments to Indians

1. • Renumbers MS Manual Section 5156-9G as MS Manual Section 5156-10

   • Adds new policy that excludes any funds deposited or held in an Individual Indian Money (IIM Individual Indian Money) account as a resource.  

5161-19  Non-Recurring Lump Sum Payments

1. • Removes income tax refunds as a type of non-recurring lump sum payment.

5161-26  Federal Income Tax Returns

1. • Adds a new policy that requires federal income tax returns to be excluded as income in the month of receipt.

5162-6C  Payments to Native Americans

1. • Adds a new policy that excludes any funds deposited or held in an Individual Indian Money (IIM Individual Indian Money) account as income.  

5165-1B  Earned Income Deduction for Recipients

1. • Clarifies that new members entering a recipient household are considered recipients for purposes of the earned income deduction and may receive the monthly earned income deduction ($150 + 33%) that applies to recipients.  Currently, new members entering a recipient household can only receive a $90 earned income deduction.  With this change, the new member may receive the higher earned income deduction as long as the "household" has received FM Family Medicaid in at least one of the four previous months.  

5185-2A  New Member Enters Household

1. • Clarifies that the F6-recipient key on the EIS Eligibility Information System MIBW Medical Insurance Budget Worksheet screen is used when a new member enters the household.    

Addendum 1  Denali KidCare Income Standards

1. • Updates DKC Denali KidCare income standards to reflect the poverty guideline changes effective March 2011.

Addendum 2  Family Medicaid Income Standards

1. • Updates Self-Employment income annualization standards to reflect the poverty guideline changes effective March 2011.