The customer is a 15-year-old child. He lives with his parents and two siblings. He has End Stage Renal Disease and receives Medicare Part A and Part B. The customer’s parents apply for Medicare Savings Programs for Henry in February 2023.
The customer’s father works full time and earned $3,500.00 in February 2023. His mother gets $900 per month from Arizona State Retirement. None of the three children have income of their own. The customer’s parents are not getting MA and are not applying for MA for themselves.
The customer’s eligibility is calculated using the net income test as follows:
1st Process: Determine Child Allocations The following steps are used to determine the total amount of the child allocations for the customer’s siblings in the household: |
|
Step |
Action |
1 |
Calculate a child allocation separately for each child of the customer’s parents in the household (excluding the customer child): Sibling 1’s allocation $457.00 (2023 allocation amount) -$0.00 (Sibling 1’s income) $457.00 (allocation amount for Sibling 1) Sibling 2’s allocation $457.00 (2023 allocation amount) -$0.00 (Sibling 2’s income) $457.00 (allocation amount for Sibling 2) |
2 |
Combine the individual allocations: $457.00 (Sibling 1’s allocation) +$457.00 (Sibling 2’s allocation) =$914.00 (total allocation) |
2nd Process: Deeming Calculation The following steps are used to calculate the amount deemed from the ineligible parent(s) to the customer child: |
|
Step |
Action |
3 |
Calculate remaining unearned income: $900.00 (parents’ unearned income) - $914.00 (child allocation amount from Step 2) = $0.00 (with –$14.00 remaining unused child allocations)
NOTE The remaining unused child allocation is carried over to Step 4. |
4 |
Calculated remaining earned income: $3,500.00 (parents’ earned income) - $14.00 (unused child allocation) = $3,486.00 (remaining earned income) |
5 |
Calculate net unearned income of ineligible parent(s): $ 0.00 (remaining unearned income from Step 3 above) -$20.00 (general deduction) $0.00 (with -$20.00 unused general deduction)
NOTE The remaining unused general deduction is carried over to Step 6. |
6 |
Calculate net earned income of ineligible parent(s): $3,486.00 (remaining earned income from Step 4 above) -$20.00 (unused portion of the $20.00 deduction) -$65.00 ($65.00 work expense deduction) -$0.00 (Impairment Related Work Expense deduction) =$3,401.00 (subtotal earned income) -$1,700.50 (1/2 subtotal of earned income) -$0.00 (Blind Work Expense deduction) =$1,700.50 (net earned income of ineligible parent(s) |
8 |
Calculate total net income of ineligible parent(s): $0.00 (net unearned income of ineligible parent(s) from Step 6 above) + $1,700.50 (net earned income of ineligible parent(s) from Step 7 above) =$1,700.50 (total net income) |
9 |
Determine deemed income from ineligible parent(s): $1,700.50 (total net income from Step 8 above) -$1,644.00 (2023 couple FPL/two parent allocation) $ 56.50 (amount of deemed income) |
3rd Process: Net Income Test Calculation The steps below are used to calculate the net income used for eligibility: |
|
Step |
Action |
10 |
Calculate the net unearned income: $0.00 (customer child’s income) +$56.50 (deemed income of ineligible parents(s) from Step 9) -$0.00 (1/3 child support deduction does not apply) =$56.50 (subtotal unearned income) -$20.00 ($20.00 general deduction) +$0.00 (no needs based assistance payments) =$36.50 (net unearned income) |
11 |
Calculate net earned income: $0.00 (total of the customer child’s counted earned income [$0.00]) -$0.00 (unused portion of the $20.00 general income deduction) -$65.00 ($65.00 work expense deduction) -$0.00 (IRWE deduction) =$0.00 (subtotal of earned income) -$0.00 (1/2 subtotal of earned income) -$0.00 (blind work expense deduction) -$0.00 (PAS Deduction) =$0.00 (net earned income) |
12 |
Calculate total net income: $36.50 (net unearned income from Step 10 above) +$0.00 (net earned income from Step 11 above) =$36.50 (subtotal of net income) 0.00 (child allocation amount – customer child does not have dependent children) =$36.50 (total net income) |
13 |
Compare the result in Step 12 to the MSP Standards for an individual: Because $36.50 is below $1,215.00 (2023 QMB FPL Standard), the customer qualifies for QMB. |