DHS 103.07 DHS 103.07Income.
DHS 103.07(1) (1)Special situations of institutionalized persons.
DHS 103.07(1)(a)(a) Support received by institutionalized persons.
DHS 103.07(1)(a)1.1. Any financial support or contribution received by an institutionalized person shall be considered available when determining the eligibility of that person for MA.
DHS 103.07(1)(a)2. 2. The income and assets of the parents of children under age 18 who reside in institutions shall be evaluated by the department to determine whether, pursuant to s. 46.10 (14), Stats., collections may be made from one or both parents. If the child is residing in an institution not specified in s. 46.10 (14), Stats., but the institution is approved to receive MA payments, the parental liability shall be the same as that provided in s. 46.10 (14), Stats., and collected in the same manner.
DHS 103.07(1)(a)3. 3. The agency shall decide if the spouse of an institutionalized applicant or recipient should be referred for support action under s. 49.90, Stats. When deciding whether to refer for support action, the agency shall consider the spouse's basic essential needs and present and future expenses. In no case may support from the spouse of an institutionalized applicant or recipient be pursued when the spouse's assets, not counting homestead property and a motor vehicle, or, if applicable, not counting assets excluded under s. DHS 103.075 (5) (b) 2., are less than the amount provided under s. 49.47 (4) (b) 3g., Stats., or, if applicable, the spousal asset share under s. 49.455 (6) (b), Stats., and when the spouse's income is less than the spousal monthly income allowance under s. 49.455 (4) (b), Stats.
DHS 103.07(1)(b) (b) Allocation of institutionalized person's income to dependents outside the institution. Except as provided under s. DHS 103.075 (6), no allocation may be made from an institutionalized applicant's or recipient's income to a spouse who is eligible for SSI but who refuses to obtain SSI. Except as provided under s. DHS 103.075 (6), no allocation may be made to a spouse or to minor children under the spouse's care if the spouse or any of the children are receiving AFDC or SSI. Otherwise, allocations shall be made as follows:
DHS 103.07(1)(b)1. 1. If the spouse is caring for a minor child for whom either the institutionalized person or the spouse is legally responsible, the AFDC assistance standard plus expenses that would be allowed under s. DHS 103.04 (3) shall be used to determine the need of the spouse and children. If their total net income is less than their need, income of the institutionalized person shall be allocated in an amount sufficient to bring the spouse's and children's income up to their monthly need. In this subdivision, “total net income" means income equal to unearned income plus net earned income, and “net earned income" means income equal to gross earned income minus work-related expenses according to requirements of AFDC. Income disregards of the AFDC program under 45 CFR 233.20 (a) shall be used as appropriate in computing income.
DHS 103.07(1)(b)2. 2. If the spouse is not caring for a minor child, the SSI payment level for one person living in that person's own household shall be used to determine the spouse's monthly need. The spouse's earned income shall be netted by subtracting the work-related expenses according to sub. (3) and $20. from earned or unearned income or both. If the spouse's net income is less than the spouse's monthly need, income of the institutionalized person may be allocated in an amount sufficient to bring the spouse's income up to monthly need. Income disregards of the SSI program under 20 CFR 416.1112 and 416.1124 shall be used as appropriate in computing income.
DHS 103.07(1)(b)3. 3. The following amounts shall be excluded when computing the income of the spouse and children under subd. 1. or the spouse alone under subd. 2.:
DHS 103.07(1)(b)3.a. a. All earnings of a child less than 14 years old, or less than 18 years old when the child is a full-time student;
DHS 103.07(1)(b)3.b. b. All earnings of a child less than 18 years old who attends school part-time and is employed fewer than 30 hours a week;
DHS 103.07(1)(b)3.c. c. Any portion of any grant, scholarship or fellowship used to pay the costs of tuition, fees, books and transportation to and from classes;
DHS 103.07(1)(b)3.d. d. Amounts received for foster care or subsidized adoption;
DHS 103.07(1)(b)3.e. e. The bonus value of food stamps and the value of foods donated by the federal department of agriculture;
DHS 103.07(1)(b)3.f. f. Home produce grown for personal consumption; and
DHS 103.07(1)(b)3.g. g. Income actually set aside for the post-high school education of a child who is a junior or senior in high school.
DHS 103.07(1)(c) (c) When both spouses are institutionalized and there is an application for MA. When both spouses are institutionalized, the following shall apply:
DHS 103.07(1)(c)1. 1. If one spouse applies for MA, the total income of both spouses may be combined to ascertain if their combined income is less than total need, provided that the spouse not applying has income exceeding that spouse's needs and is willing to make that income available;
DHS 103.07(1)(c)2. 2. If the combined income of both spouses is less than total need, separate determinations shall be made to see if either spouse has excess income. Any excess may be allocated to the other spouse. Either one or both of the spouses may be eligible depending on income allocation; and
DHS 103.07(1)(c)3. 3. If the combined income of both spouses exceeds total need, separate determinations shall be made. Only the actual amount of income made available from one spouse to the other may be used in determining the eligibility of the other spouse. If the spouse refuses to make a reasonable amount available, the agency shall review the case under par. (a) 3. to determine if legal action for support should be taken pursuant to s. 49.90, Stats.
DHS 103.07(1)(d) (d) Computing income available towards cost of care. Institutionalized recipients of MA who are determined eligible under s. DHS 103.06 and this section shall apply their available income toward the cost of their care after deducting the income disregards in this paragraph. In this paragraph, “available income" means any remaining income after the following reductions are made:
DHS 103.07(1)(d)1. 1. A personal needs allowance, as provided under s. 49.45 (7) (a), Stats., and
DHS 103.07(1)(d)2. 2. If employed, the first $65 and one-half of the remainder of gross earnings;
DHS 103.07(1)(d)3. 3. The cost of health insurance;
DHS 103.07(1)(d)4. 4. Necessary medical or remedial care recognized under state law but not covered by MA;
DHS 103.07(1)(d)5. 5. The actual amount paid by the institutionalized person for support of a person for whom the institutionalized person is legally responsible but not to exceed the appropriate AFDC assistance standard unless the institutionalized person is paying court-ordered support in an amount greater than the AFDC assistance standard in s. 49.19 (11) (a) 1., Stats.; and
DHS 103.07(1)(d)6. 6. The monthly cost of maintaining a home when the conditions of s. DHS 103.06 (1) (b) 3. are met, but not to exceed the SSI payment level for one person living in that person's own household.
DHS 103.07(2) (2)Special types of income.
DHS 103.07(2)(a)(a) Farm and self-employment income. Farm and self-employment income used in MA calculations shall be determined by adding back into the net earnings the following: depreciation, personal business and entertainment expenses, personal transportation, purchases of capital equipment, and payments on the principal of loans. The total shall be divided by 12 to get monthly earnings. If no tax return has been filed, the individual shall complete a 1040 form of the internal revenue service (IRS) to determine net earnings or loss, or to anticipate, in case of relatively new businesses, net earnings as required by the IRS. If the latest income tax return does not accurately reflect the household's actual circumstances because the household has experienced a substantial increase or decrease in business, the agency shall calculate the self-employment income based on anticipated earnings. Agencies shall determine whether it is necessary to use anticipated earnings on a case-by-case basis and shall document the reasons for the determination in the case record.
DHS 103.07(2)(b) (b) Contractual employment income. Income received on other than an hourly or piecework basis from employment performed under a contract which is renewable on an annual basis shall be averaged over a 12-month period. Persons receiving this income shall be considered to receive compensation for the entire 12-month period even though actual compensation may only be received for part of the year.
DHS 103.07 Note Note: For example, if school teachers are paid 9 months a year, the wages they receive are to be averaged over a 12-month period.
DHS 103.07(2)(c) (c) In-kind benefits. Predictable in-kind benefits received regularly and in return for a service or product delivered shall be treated as earned income in MA calculations. The value of the in-kind income is determined by using the prevailing wage rate in the local community for the type of work performed, but not less than the minimum wage for that type of work.
DHS 103.07(2)(d) (d) Income from providing room and board. Net profit from room and board shall be treated as earned income in MA calculations. Net profit is determined by deducting the following expenses of providing room and board from the gross room and board income received:
DHS 103.07(2)(d)1. 1. Roomer only - $15.00;
DHS 103.07(2)(d)2. 2. Boarder only - current food stamp allotment for one; and
DHS 103.07(2)(d)3. 3. Roomer and boarder - current food stamp allotment for one plus $15.00.
DHS 103.07(2)(e) (e) Income from rentals. When the owner reports rental income to the IRS as self-employment income, the procedures set forth in par. (a) shall be followed in MA calculations. If the owner does not report rental income to the IRS as self-employment income, net rental income shall be determined as follows:
DHS 103.07(2)(e)1. 1. When the owner is not an occupant, net rental income is the rental income minus the mortgage payment and verifiable operational costs;
DHS 103.07(2)(e)2. 2. When the owner receives rental income from a duplex or multiple rental unit building and the owner resides in one of the units, net rental income shall be computed according to the following method:
DHS 103.07(2)(e)2.a. a. Add the interest portion of the mortgage and other verifiable operational costs common to the entire operation;
DHS 103.07(2)(e)2.b. b. Multiply the number of rental units by the total in subd. 2. a.;
DHS 103.07(2)(e)2.c. c. Divide the result in subd. 2. b. by the total number of units;
DHS 103.07(2)(e)2.d. d. Add the result in subd. 2. c. to any operational costs paid by the owner that are unique to any rental unit; and
DHS 103.07(2)(e)2.e. e. Subtract the result in subd. 2. d. from the total rent payments. The result is net rental income.
DHS 103.07(2)(f) (f) Income of SSI child's parents. Income of a disabled child's parents shall not be considered when determining the child's eligibility for MA if the child meets the conditions stated in 42 USC 1396a (e) (3).
DHS 103.07(2)(g) (g) Income disregards. Income disregards of the AFDC program under 45 CFR 233.20 (a) and of the SSI program under 20 CFR 416.1112 and 416.1124 shall be used as appropriate.
DHS 103.07(2)(h) (h) Income from land contracts. Income received from a land contract shall be counted as unearned income. If the income is received on a monthly basis, it shall be included as monthly income. Payments received on less than a monthly basis shall be prorated to a monthly amount over the period between payments. Any expenses that the applicant or recipient is required to pay under the terms of the land contract shall be deducted from the gross income received from the land contract.
DHS 103.07(2)(i) (i) Interest income.
DHS 103.07(2)(i)1.1. Interest income shall be counted as unearned income when:
DHS 103.07(2)(i)1.a. a. It is received on a regular basis; and
DHS 103.07(2)(i)1.b. b. It exceeds $20.00 per month. Amounts of $20.00 or less are considered inconsequential income and are disregarded.
DHS 103.07(2)(i)2. 2. The interest shall be counted as income in the month in which it is received. Interest income that is received less often than monthly shall be prorated over the period the payment covers.
DHS 103.07(3) (3)Deductions from earned income.
DHS 103.07(3)(a)(a) Work-related deduction. If an individual is employed, $90 shall be deducted from the individual's earned income when determining MA eligibility.
DHS 103.07(3)(b) (b) Dependent care deductions. When employment cannot be maintained without dependent care for a child or incapacitated adult in the MA or fiscal test group, the following deductions shall be applied:
DHS 103.07(3)(b)1. 1. The actual cost of care but not more than $175 each month for each dependent child age 2 or over or incapacitated adult; and
DHS 103.07(3)(b)2. 2. The actual cost of care but not more than $200 each month for each dependent child under age 2.
DHS 103.07(3)(c) (c) Special deductions for employed blind persons. Transportation expenses incurred in getting to and from work, expenses related to job performance and expenses related to improving job ability such as training meant to improve employability and increase earning power shall be deducted from the earned income of blind persons.
DHS 103.07 Note Note: Examples of expenses related to job performance are a reader, translation of material into braille, the cost and upkeep of a seeing eye dog for a blind person, and the cost of a prosthesis.
DHS 103.07(4) (4)Deduction from any income for support to an institutionalized person. If a person in the MA group has legal responsibility for a person residing in an institution where the cost of care cannot be covered by MA, any income actually made available by the MA group toward the institutional cost of care shall be deducted from the MA group's income.
DHS 103.07 History History: Cr. Register, February, 1986, No. 362, eff. 3-1-86; cr. (2) (h), Register, July, 1989. No. 403, eff. 8-1-89; emerg. r. and recr. (3) (a) and (b), eff. 10-2-89; r. and recr. (3) (a) and (b), Register, March, 1990, No. 411, eff. 4-1-90; am. (1) (a) 3., (b) (intro.), (c) 3. and (d) (intro.), r. and recr. (1) (d) 1., cr. (2) (i), Register, March, 1993, No. 447, eff. 4-1-93; correction in (1) (a) 3. and (2) (e) 2. made under s. 13.93 (2m) (b) 7., Stats., Register, April, 1999, No. 520.
DHS 103.075 DHS 103.075Prevention of spousal impoverishment.
DHS 103.075(1)(1)Applicability. For resource eligibility, this section applies to all institutionalized applicants for and recipients of MA who began a continuous period of institutionalization on or after September 30, 1989, and to their spouses. For purposes of computing income available towards the cost of an institutionalized individual's care, this section applies to all institutionalized applicants for and recipients of MA who were residing in an institution on October 1, 1989, or who entered an institution subsequent to that date, and to their spouses.
DHS 103.075(2) (2)Purpose. This section implements s. 49.455, Stats., which provides for protection of a couple's income and resources when one spouse is institutionalized and the other spouse lives in the community.
DHS 103.075(3) (3)Definitions. In this section:
DHS 103.075(3)(a) (a) “Community spouse" means an individual who is legally married as recognized under state law to an institutionalized spouse but is not himself or herself an institutionalized individual.
DHS 103.075(3)(b) (b) “Consumer price index" means the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor.
DHS 103.075(3)(c) (c) “Continuous period of institutionalization" means an individual has resided in or is likely to remain in an institution for at least 30 consecutive days.
DHS 103.075(3)(d) (d) “Family member" means a minor or dependent child, dependent parent or dependent sibling of an institutionalized or community spouse who resides with the community spouse.
DHS 103.075(3)(e) (e) “Institutionalized spouse" means either an individual who is in a medical institution or nursing facility and is legally married to an individual who is not in a medical institution or nursing facility or an individual who receives services under a waiver under 42 USC 1396n (c) or (d) and is legally married to an individual who is not in a medical institution or nursing facility and does not receive services under a waiver under 42 USC 1396n (c) or (d).
DHS 103.075(3)(f) (f) “Medical institution" means a facility that:
DHS 103.075(3)(f)1. 1. Is organized to provide medical care, including nursing and convalescent care;
DHS 103.075(3)(f)2. 2. Has the necessary professional personnel, equipment and facilities to manage the medical, nursing and other health care needs of patients on a continuing basis in accordance with accepted professional standards;
DHS 103.075(3)(f)3. 3. Is authorized under state law to provide medical care; and
DHS 103.075(3)(f)4. 4. Is staffed by professional personnel who are responsible for professional medical and nursing services. The professional medical and nursing services shall include adequate and continual medical care and supervision by a physician, registered nurse or licensed practical nurse supervision and services and nurses' aide services sufficient to meet nursing care needs and a physician's guidance on the professional aspects of operating the institution.
DHS 103.075(3)(g) (g) “Resources" does not include items excluded under 42 USC 1382b (a) or (d) or items that would be excluded under 42 USC 1382b (a) (2) (A) but for the limitation on total value established under that provision.
DHS 103.075(4) (4)Assessment.
DHS 103.075(4)(a)(a) An institutionalized spouse or the community spouse, or a representative acting on the behalf of either spouse, may request that an agency complete an assessment of the couple's assets for purposes of determining total countable assets of the couple and the community spouse resource allowance. If the request is not part of an application for medical assistance, the agency may charge a fee not exceeding the reasonable expenses of providing and documenting the assessment.
DHS 103.075(4)(b) (b) Both the institutionalized spouse and the community spouse shall verify the assets that they own, jointly or individually, and the value of those assets at the beginning of the most recent continuous period of institutionalization.
DHS 103.075(4)(c) (c) The agency shall:
DHS 103.075(4)(c)1. 1. Complete the assessment within 30 days after the date of the request for an assessment;
DHS 103.075(4)(c)2. 2. Determine and verify the total countable assets of the couple using the procedures under sub. (5) (b) 2.;
DHS 103.075(4)(c)3. 3. Determine the community spouse resource allowance pursuant to s. 49.455 (6) (b), Stats.; and
DHS 103.075(4)(c)4. 4. Notify in writing the institutionalized spouse and the community spouse, or a representative acting on the behalf of either spouse, of the couple's total countable assets, the community spouse resource allowance and the amount of assets that the couple may retain so that the institutionalized spouse may be asset-eligible for MA and of the right of either spouse to a fair hearing under sub. (8) after an application for medical assistance is filed.
DHS 103.075(5) (5)Assets.
DHS 103.075(5)(a)(a) Applicability. This subsection applies only to individuals who began their most recent continuous period of institutionalization after September 29, 1989. Those individuals who began their most recent continuous period of institutionalization before September 30, 1989, shall have their eligibility determined using asset eligibility criteria under s. DHS 103.06 (1) unless the individual left the institution or lost eligibility for a community-based services waiver program under 42 USC 1396n (c) or (d) for a period of at least 30 days and subsequently began a new continuous period of institutionalization after September 29, 1989.
DHS 103.075(5)(b) (b) Eligibility determination.
DHS 103.075(5)(b)1.1. Initial determination. The agency shall consider the total countable assets of the institutionalized spouse and his or her community spouse in determining initial MA eligibility for the institutionalized spouse.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.