441—75.59 (249A) Persons who may be voluntarily excluded from the eligible group when determining eligibility for the family medical assistance program (FMAP) and FMAP-related coverage groups.
	 75.59(1) Exclusions from the eligible group. In determining eligibility under the family medical assistance program (FMAP) or any FMAP-related Medicaid coverage group in this chapter, the following persons may be excluded from the eligible group when determining Medicaid eligibility of other household members.
	  a.   	 Siblings (of whole or half blood, or adoptive) of eligible children.
	  b.   	 Self-supporting parents of minor unmarried parents.
	  c.   	 Stepparents of eligible children.
	  d.   	 Children living with a specified relative, as listed at subrule 75.55(1).
	 75.59(2) Needs, income, and resource exclusions. The needs, income, and resources of persons who are voluntarily excluded shall also be excluded. If a self-supporting parent of a minor unmarried parent is voluntarily excluded, then the minor unmarried parent shall not be counted in the household size when determining eligibility for the minor unmarried parent’s child. However, the income and resources of the minor unmarried parent shall be used in determining eligibility for the unmarried minor parent’s child. If a stepparent is voluntarily excluded, the natural or adoptive parent shall not be counted in the household size when determining eligibility for the natural or adoptive parent’s children. However, the income and resources of the natural or adoptive parent shall be used in determining eligibility for the natural or adoptive parent’s children.
	 75.59(3) Medicaid entitlement. Persons whose needs are voluntarily excluded from the eligibility determination shall not be entitled to Medicaid under this or any other coverage group.
	 75.59(4) Situations where parent’s needs are excluded. In situations where the parent’s needs are excluded but the parent’s income and resources are considered in the eligibility determination (e.g., minor unmarried parent living with self-supporting parents), the excluded parent shall be allowed the earned income deduction, child care expenses and the work incentive disregard as provided at paragraphs 75.57(2)“a,” “b,” and “c.”
	 75.59(5) Situations where child’s needs, income, and resources are excluded. In situations where the child’s needs, income, and resources are excluded from the eligibility determination pursuant to subrule 75.59(1), and the child’s income is not sufficient to meet the child’s needs, the parent shall be allowed to divert income to meet the unmet needs of the excluded child. The maximum amount to be diverted shall be the difference between the schedule of basic needs of the eligible group with the child included and the schedule of basic needs with the child excluded, in accordance with the provisions of subrule 75.58(2), minus any countable income of the child.