Adult Medicaid Manual MA-2261 1/3 REDUCTION
I. RULES FOR USE OF FULL INCOME LEVEL OR 1/3 REDUCTION
When determining eligibility, you must determine whether to use the full income level (maintenance allowance) or the 1/3 reduced income level.
A. Full Income Level
Use the full income level in determining eligibility in the following situations:
1. The individual or his spouse has:
a. Ownership Interest- The individual or his spouse owns or has any ownership interest in the dwelling where he lives.
b. Rental Agreement - The individual or his spouse has a rental agreement for a house, apartment, room (boarding house, hotel), or other commercial situation.
2. Sharing - The individual is paying his proportionate share. This is determined by dividing the expenses by the number of household members. The individual is presumed to be sharing if he resides in an all public assistance household. Refer to II. below for procedures.
3. The individual separately purchases food or shelter.
a. Separate purchase can be direct separate purchase or by paying his share of household expenses.
b. If an a/r pays for other expenses and it is agreed upon by other household members that what he pays covers his requirement for shelter and food, the full income limit may be used to determine eligibility.
Example: A/R lives with relatives. They pay all shelter costs and he pays for everyone's food. There is an agreement that the value of the food the a/r purchases covers his shelter expense. The a/r is considered to be paying for his shelter cost. Use full income level to determine his eligibility.
4. The individual is a domestic or agricultural employee who is provided food and shelter as part of his salary.
5. The individual is a child (under 18) living in the household of a parent or spouse of such parent.
6. When counting in-kind support and maintenance (in-kind income) the full income level is used. Refer to MA-2250, Income.