When a family includes a stepparent who does not have a dependent child included in the assistance group, income of the stepparent must be considered to determine eligibility of their spouse (the parent). This is accomplished by either deeming the stepparent's income or including the stepparent in the assistance group. Both methods should be explored to determine the parent's eligibility. If neither method results in eligibility, exclude the stepparent's needs and income (no deeming) to determine the child's eligibility under MAF.
NOTE: While the stepparent may be included in the assistance group to determine if a parent is eligible, the stepparent is not eligible for benefits.
The deeming procedure is the same as that for Temporary Assistance cases. Refer to Section 0210.005.40. To deem income in stepparent cases, complete the following budget steps:
NOTE: Verification of the stepparent's income is necessary to establish the parent's MAF eligibility. If the stepparent refuses to supply needed information, reject or close the parent and determine the children's eligibility with the stepparent's needs and income excluded.
EXAMPLE 1: Mrs. Smith has two children for whom she is applying for MAF. Her husband, Mr. Smith (the stepparent), is employed and earns $1000 per month. Mr. Smith has a child who lives with his mother. Mrs. Smith and her two children have no income. Mr. Smith pays court-ordered child support for his child of $300 per month. The computation is as follows:
$1000 - $90 = $910
$910 - $393 (full need standard for one person)= $517
$517 - $300 (child support) = $217
$217 is the stepparent's income to count.
Since $217 is less than $1565 (185 percent of the need standard for the assistance group), the family meets the gross income limit test.
Since $217 is less than $846 , the family meets the full need standard income limit test.
In determining need and eligibility on net income, subtract $217 from $292. Since $217 is less than $292 Mrs. Smith and her two children are eligible for MAF.
EXAMPLE 2: Mrs. A. applies for MAF for herself and two children by a previous marriage. She is unemployed and receives child support of $200 total per month for these children ($100 per month for each child). Her current spouse is employed earning $1000per month. He pays child support of $300 to a child from a previous marriage.
Step #1: Assistance group consists of Mrs. A. and her two children. Deemed stepparent income of $217 (Gross income of $1000 minus $90 standard work expense, 1996 AFDC full need standard for one person of $393, and $300 in child support paid) and $150 child support income ($200 child support minus $50 child support disregard) equals total net income of $367, which exceeds the $292 MAF net income limit for three persons.
Step #2: Assistance group consists of Mrs. A, her two children and stepparent. Mr. A's income of $1000 minus $90 standard work expense and the child support income of $150 ($200 child support minus $50 child support disregard) equals $1060, which exceeds the $342 MAF net income limit for a four person assistance group.
Step #3: Since Mrs. A. is ineligible for MAF using both budget procedures, complete an MAF budget excluding the step-parent's income and needs. Only the children are eligible for healthcare coverage. Mother will be shown as an included (Z loc) on the IMU5.
EXAMPLE 3: Mrs. B. applies for MAF for herself and one child by a previous marriage. She is employed earning $500 and receives no child support for the child. Her current spouse is unemployed and has no unearned income.
Step #1: Assistance group consists of Mrs. B. and her child. Since spouse has no income, there is no deemed stepparent income. When budgeting Mrs. B's earnings of $500 and subtracting the $90 work expense standard, they are eligible on the full need standard test as $410 is less than $678. When budgeting Mrs. B's earnings of $500, applying $30 and 1/3 disregard, and subtracting the $90 work expense standard, they are ineligible as the adjusted net income of $253.33 exceeds the net income limit of $234 for two persons.
Step #2: Complete a budget including the stepparent. The adjusted net income of $253.33 is compared to the eligibility limit of $292 for a three-person assistance group. Mrs. B. and the child now qualify for MAF. The stepparent is not eligible for coverage but will be shown as a Z loc on the IMU5.
Eighteen-year-olds not attending school who live with a relative or legal GUARDIAN may be eligible for MAF. A separate budget computation must be completed to determine their eligibility for MAF.
To determine eligibility if there are no dependent children or eligible caretakers in the home, include all persons eligible for inclusion in the budget group (natural or adoptive parents, NPCR, or legal guardian, plus children age 18 not in school.
Follow the procedures below when a household contains both dependent children and 18-year-olds not attending school.
EXAMPLE: A mother with eligible children ages 14 and 17, and an 18-year-old child who does not attend school. The mother is employed and no other income exists in the household. Determine the MAF eligibility by subtracting countable income from the net income limit for the number of persons in the younger two children's assistance group (three persons in this example).
To determine if the 18-year-old is eligible for MAF, complete a second budget using the net income limit for four persons (in this example). Include countable income from the first MAF budget. Excluding any Temporary Assistance grant. Subtract the budgeted income from the net income limit for four persons. If any deficit exists, the child is eligible for MC+ healthcare coverage.
SSI children are optional members of the assistance group, if included their income other than SSI must be budgeted. When the only eligible child(ren) receives SSI, eligibility may exist for MAF for the eligible caretaker and/or second parent with the SSI child excluded. The SSI child's needs and income may be excluded in determining the eligible caretaker's and/or second parent's eligibility, if including the child would cause ineligibility.
If the SSI child is under 18 or under 19 and meets the school attendance requirements for dependent children, the eligible caretaker and/or second parent may be eligible for MAF. Consider childcare costs for the SSI child as an expense to the earned income of the caretaker and/or second parent even if the child is not in this assistance group.
If the SSI child is 18 years old and does not meet the school attendance requirement, the eligible caretaker and/or second parent is not eligible for MAF.
The first $50 of child support income received per MAF case per month is to be disregarded in the gross income eligibility limit test, the full need standard test (Temporary Assistance Consolidated Standard Expense) and the net income limit test (current Temporary Assistance maximum grant amount). When a household applying for or receiving MAF receives child support, disregard the first $50 of the total received and budget the remainder as unearned income. There can only be one $50 disregard per MAF case.
EXAMPLE: Ms. Jones applies for MAF and Temporary Assistance (TA) for herself and one child. The only income in the assistance group is child support in the amount of $250 per month. The cash budget for Temporary Assistance would include the full $250 child support. The child support exceeds the $234 net income limit for two persons, making the assistance group ineligible for TA. For MAF, disregard the first $50 of the child support and budget the remainder of $200. Since $200 per month is less than the $234 net income limit for two persons, Ms. Jones and her child are eligible for MAF.
If members of an active MAF case begin receiving or experience an increase in child support, and disregarding $50 of child support still results in ineligibility for continued MAF, explore eligibility for Extended MAF on Support Closings (refer to Section 0915.000.00) and all other MC+ and Medicaid programs.
Note: This disregard was eliminated January 1, 2002 when the income limit was raised to 100% of the federal poverty level (FPL). The disregard is reinstated effective July 1, 2005 when House Bill 11 reduces the MAF income standards to the July 16, 1996 Aid to Families with Dependent Children income standards. This disregard is allowed only for MAF cases.