441—75.16 (249A) Client participation in payment for medical institution care. Medicaid clients are required to participate in the cost of medical institution care. However, no client participation is charged when the combination of Medicare payments and the Medicaid benefits available to qualified Medicare beneficiaries covers the cost of institutional care.
	 75.16(1) Income considered in determining client participation. The department determines the amount of client participation based on the client’s total monthly income, with the following exceptions:
	  a.   	 FMAP-related clients. The income of a client and family whose eligibility is FMAP-related is not available for client participation when both of the following conditions exist:
	 (1) 	 The client has a parent or child at home.
	 (2) 	 The family’s income is considered together in determining eligibility.
	  b.   	 SSI-related clients who are employed. If a client receives SSI and is substantially gainfully employed, as determined by the Social Security Administration, the client shall have the SSI and any mandatory state supplementary assistance payment exempt from client participation for the two full months after entry to a medical institution.
	  c.   	 SSI-related clients returning home within three months. If the Social Security Administration continues a client’s SSI or federally administered state supplementary assistance payments for three months because it is expected that the client will return home within three months, these payments shall be exempt from client participation.
	  d.   	 Married couples.
	 (1) 	 Institutionalized spouse and community spouse. If there is a community spouse, only the institutionalized person’s income shall be considered in determining client participation.
	 (2) 	 Both spouses institutionalized. Client participation for each partner in a marriage shall be based on one-half of the couple’s combined income when the partners are considered together for eligibility. Client participation for each partner who is considered individually for eligibility shall be determined individually from each person’s income.
	 (3) 	 Rescinded, IAB 7/11/90, effective 7/1/90.
	  e.   	 State supplementary assistance recipients. The amount of client participation that a client paid under the state supplementary assistance program is not available for Medicaid client participation in the month of the client’s entry to a medical institution.
	  f.   	 Foster care recipients. The amount of income paid for foster care for the days that a child is in foster care in the same month as entry to a medical institution is not available for client participation.
	 75.16(2) Allowable deductions from income. In determining the amount of client participation, the department allows the following deductions from the client’s income, taken in the order they appear:
	  a.   	 Ongoing personal needs allowance. All clients shall retain $50 of their monthly income for a personal needs allowance. (See rules 441—81.23(249A), 441—82.19(249A), and 441—85.47(249A) regarding potential state-funded personal needs supplements.)
	 (1) 	 If the client is a veteran or a surviving spouse of a veteran who receives a pension subject to limitation of $90 after the month of entry pursuant to 38 U.S.C. Section 5503, the veteran or the surviving spouse of a veteran shall retain $90 from the veteran’s pension beginning the month after entry to a medical institution. The $90 allowance from a veteran’s pension is in addition to the $50 allowance from any other income.
	 (2) 	 If the client has earned income, an additional $65 is added to the ongoing personal needs allowance from the earned income only.
	 (3) 	 Rescinded IAB 7/4/07, effective 7/1/07.
	  b.   	 Personal needs in the month of entry.
	 (1) 	 Single person. A single person shall be given an allowance for stated home living expenses during the month of entry, up to the amount of the SSI benefit for a single person.
	 (2) 	 Spouses entering institutions together and living together. Partners in a marriage who enter a medical institution in the same month and live in the same room shall be given an allowance for stated home living expenses during the month of entry, up to the amount of the SSI benefit for a couple.
	 (3) 	 Spouses entering an institution together but living apart. Partners in a marriage who enter a medical institution during the same month and who are considered separately for eligibility shall each be given an allowance for stated home living expenses during the month of entry, up to one-half of the amount of the SSI benefit for a married couple. However, if the income of one spouse is less than one-half of the SSI benefit for a couple, the remainder of the allowance shall be given to the other spouse. If the couple’s eligibility is determined together, an allowance for stated home living expenses shall be given to them during the month of entry up to the SSI benefit for a married couple.
	 (4) 	 Community spouse enters a medical institution. When the second member of a married couple enters a medical institution in a later month, that spouse shall be given an allowance for stated expenses during the month of entry, up to the amount of the SSI benefit for one person.
	  c.   	 Personal needs in the month of discharge. The client shall be allowed a deduction for home living expenses in the month of discharge. The amount of the deduction shall be the SSI benefit for one person (or for a couple, if both members are discharged in the same month). This deduction does not apply when a spouse is at home.
	  d.   	 Maintenance needs of spouse and other dependents.
	 (1) 	 Persons covered. An ongoing allowance shall be given for the maintenance needs of a community spouse. The allowance is limited to the extent that income of the institutionalized spouse is made available to or for the benefit of the community spouse. If there are minor or dependent children, dependent parents, or dependent siblings of either spouse who live with the community spouse, an ongoing allowance shall also be given to meet their needs.
	 (2) 	 Income considered. The verified gross income of the spouse and dependents shall be considered in determining maintenance needs. The gross income of the spouse and dependent shall include all monthly earned and unearned income and assistance from the family investment program (FIP), supplemental security income (SSI), and state supplementary assistance (SSA). It shall also include the proceeds of any annuity or contract for sale of real property. Otherwise, the income shall be considered as the SSI program considers income. In addition, the spouse and dependents shall be required to apply for every income benefit for which they are eligible except that they shall not be required to accept SSI, FIP or SSA in lieu of the maintenance needs allowance. Failure to apply for all benefits shall mean reduction of the maintenance needs allowance by the amount of the anticipated income from the source not applied for.
	 (3) 	 Needs of spouse. The maintenance needs of the spouse shall be determined by subtracting the spouse’s gross income from the maximum amount allowed as a minimum monthly maintenance needs allowance for the community spouse by Section 1924(d)(3)(C) of the Social Security Act (42 U.S.C. § 1396r-5(d)(3)(C)). (This amount is indexed for inflation annually according to the consumer price index.)
However, if either spouse has established through the appeal process that the community spouse needs income above the minimum monthly maintenance needs allowance, due to exceptional circumstances resulting in significant financial duress, an amount adequate to provide additional income as is necessary shall be substituted.
Also, if a court has entered an order against an institutionalized spouse for monthly income to support the community spouse, then the community spouse income allowance shall not be less than this amount.
	 (4) 	 Needs of other dependents. The maintenance needs of the other dependents shall be established by subtracting each person’s gross income from 133 percent of the monthly federal poverty level for a family of two and dividing the result by three. (Effective July 1, 1992, the percent shall be 150 percent.)
	  e.   	 Maintenance needs of children (without spouse). When the client has children under 21 at home, an ongoing allowance shall be given to meet the children’s maintenance needs.
The income of the children is considered in determining maintenance needs. The children’s countable income shall be their gross income less the disregards allowed in the FIP program.
The children’s maintenance needs shall be determined by subtracting the children’s countable income from the FIP payment standard for that number of children. (However, if the children receive FIP, no deduction is allowed for their maintenance needs.)
	  f.   	 Client’s medical expenses. A deduction shall be allowed for the client’s incurred expenses for medical or remedial care that are not subject to payment by a third party. This includes Medicare premiums and other health insurance premiums, deductibles or coinsurance, and necessary medical or remedial care recognized under state law but not covered under the state Medicaid plan.
This rule is intended to implement Iowa Code sections 249A.3 and 249A.4.