Current through Register Vol. 43, No. 12, March 20, 2024
"Applicable income" shall mean the amount of earned and
unearned income that is compared with the appropriate income standard to
establish financial eligibility.
(a)
MAGI-based coverage groups. For those groups specified in K.A.R.
129-6-34(c)(1), all earned income and unearned income shall be considered
applicable, unless exempted in accordance with K.A.R. 129-6-53(a)(2), and shall
be determined as follows:
(1) Applicable
income shall be based on the methodologies used to determine modified adjusted
gross income, as specified in K.A.R. 129-6-53(a), for persons in the household,
as specified in K.A.R. 129-6-53(b).
(2) An amount equivalent to five percentage
points of the federal poverty level for the applicable family size shall be
deducted from the combined household income in accordance with K.A.R.
129-6-53(a) when determining eligibility for the MAGI-based coverage groups
under K.A.R. 129-6-34(c)(1) with the highest income standard for which the
individual's eligibility is being determined.
(b) MAGI-excepted coverage groups. For those
groups specified in K.A.R. 129-6-34(c)(2), all earned income and unearned
income shall be considered applicable income, unless exempted in accordance
with K.A.R. 129-6-112 and 129-6-113. For all aged, blind, and disabled groups,
applicable income shall be determined as follows:
(1) Wages. All earned income shall be
considered applicable income, except that K.A.R. 129-6-112 and 129-6-113 shall
apply to persons in an independent living arrangement or in the HCBS program.
The applicable earned income shall be gross income less income deductions, if
applicable.
(2) Self-employment.
The applicable earned income for a self-employed person shall equal the
modified adjusted gross earned income less the income deductions of paragraph
(b)(4), if applicable. Paragraph (b)(1) regarding modified adjusted gross
earned income shall apply to calculations made pursuant to this paragraph.
Annual tax information from the most recent tax year shall be converted to a
monthly prospective amount. This amount shall be used in the determination of
both eligibility in the prior three months and current eligibility. In the
absence of tax information from the most recent tax year, the most current
income shall be used to determine a monthly amount.
(3) Unearned income. All net unearned income
shall be considered to be applicable income, except that K.A.R. 129-6-112 and
129-6-113 shall apply to persons in an independent living arrangement or in the
HCBS program. K.A.R. 129-6-113 (a), (m), (n), (w), (bb), (cc), (ff), (kk),
(nn), and (oo) shall apply to persons in long-term care arrangements. Net
unearned income shall equal gross unearned income less the costs of the
production of the income. Income-producing costs shall include only those
expenses directly related to the actual production of income.
(4) Income deductions.
(A) For persons in an independent living
arrangement or in the HCBS program, the following deductions shall apply:
(i) The first $20 of any nonexempt unearned
income; and
(ii) an applicable
earned income deduction calculated as follows: gross earned income minus any
portion of the unearned income deduction that exceeds monthly earned income,
plus $65 of monthly earned income, plus one-half of the remainder of the
monthly earned income.
(B) For persons in long-term institutional
arrangements who are employed, an applicable earned income deduction shall be
calculated as follows: gross earned income minus $65 of monthly earned income,
plus one-half of the remainder of the monthly earned income.