400 Income Standards

Effective: January 1, 2017

Previous Policy


A client's income must be considered to determine eligibility for medical assistance. This section includes the policies for using the MAGI-methodology to determine the household size, whose income to count and the rules for calculating and budgeting income to use to determine eligibility for CHIP.  The section also covers what income is countable and what is exempt,


Employees of the Department of Health and the Department of Workforce Services are prohibited from advising or encouraging applicants for, or enrollees to terminate employment or to otherwise reduce income for the purpose of qualifying for CHIP or any public assistance program.  This does not mean that employees cannot tell applicants or recipients about CHIP and/or the Medicaid spenddown program and the ways to reduce or meet a Medicaid spenddown with medical bills to be able to receive Medicaid.  Workers can explain eligibility policies, what income deductions a client receives, and answer questions a client asks about policies.

If the client has expenses and not enough income to cover them, the client must verify how they are meeting their expenses (705-2).