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Programs |
Manual Section |
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MSP |
The customer lives with his wife and their 15-year-old daughter. He has Medicare Part A and Part B and applies for Medicare Savings Program benefits for himself in April 2025.
The customer gets $1,900.00 in Social Security Retirement income per month. His wife works and received $500.00 in April 2025. The customer’s daughter has no income of her own.
The customer’s eligibility is calculated using the net income test as follows:
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Step |
Action |
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1 |
Calculate net unearned income: $1,900.00 (customer’s total counted unearned income [$1,900.00] plus the spouse’s counted unearned income [$0.00]) -$ 0.00 (1/3 child support deduction is not applicable) =$1,900.00 (subtotal) -$ 20.00 (general income deduction) =$1,880.00 (subtotal) +$ 0.00 (there is no income based on need) =$1,880.00 (net unearned income) |
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2 |
Calculate net earned income: $ 500.00 (customer’s total counted earned income [$0.00] plus the spouse’s counted earned income [$500.00]) -$ 0.00 (unused portion of the $20.00 general income deduction) -$ 65.00 ($65.00 work expense deduction) -$ 0.00 (IRWE deduction is not applicable) =$ 435.00 (subtotal of earned income) -$ 217.50 (1/2 subtotal of earned income) -$ 0.00 (blind work expense deduction is not applicable) =$ 217.50 (net earned income) |
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3 |
Calculate total net income: $1,880.00 (net unearned income from Step 1 above) +$ 217.50 (net earned income from Step 2 above) =$2,097.50 (subtotal of net income) - $ 376.00 (2018 child allocation of $376.00 - $0.00 income = $376.00) =$1,721.50 (total net income) |
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4 |
Compare the result in Step 3 to the MSP Standards for a couple: Because $1,721.50 is between $1,763.01 – $2,115.00 (2025 SLMB FPL Standard for a couple), the customer is income eligible for SLMB. |