A Adoption Assistance (Adoption Subsidy)

 

 

Revised 03/25/2025

Policy

A child receiving Title IV-E adoption assistance is automatically eligible for AHCCCS Medical Assistance (MA).

How adoption assistance payments are treated depends on the following:

If the adoption assistance is funded through…

And the assistance is...

Then the treatment is...

Title IV-E

 

Since the child customer automatically gets MA (MA414), this income is only counted as unearned income to the customer for:

  • The ALTCS Share of Cost (MA1201B); and

  • The Child Allocation for SSI-MAO (MA611A) and MSP (MA612).

NOTE     Customers who receive Title IV-E are categorically eligible for ALTCS (MA502).

Title IV-B or Title XX

 

Excluded for all programs.

State Funded  (except Connecticut, Florida, Illinois, Michigan, New Mexico, New York, Pennsylvania, Tennessee, Vermont, and Wyoming)

 

Since the customer automatically gets MA (MA414), the income is only counted as unearned income to the customer for:

  • The ALTCS Share of Cost (MA1201B); and

  • The Child Allocation for SSI-MAO (MA611A) and MSP (MA612).

 

Submit a PCR if the customer is receiving Adoption subsidy payments from a state that is excepted.

Other

Based on need

Excluded for all programs.

Not based on need

Counted as unearned income for:

  • ALTCS

  • SSI-MAO

  • MSP

Exception: Any part of the payment intended for the parent as an incentive or service payment, and not to support the child, is counted to the parent.

Excluded for:

  • Adult

  • Caretaker Relative

  • Child

  • Pregnant Woman

  • KidsCare

 

Definitions

Term

Definition

Adoption Subsidy

Payments to encourage the adoption of children with special needs. The payments help families with the extra costs that might be a barrier to adoption of a child with special needs.

Based on Need

The person must demonstrate financial need to qualify for the payment.

 

Proof

Income is first obtained through the Federal and State Data Services Hubs. If needed, other proof includes:

AHCCCS Staff: To verify if Adoption Subsidy payments from the Arizona Department of Child Safety (DCS) or Tribal Adoption Subsidy payment is title IV-E, submit a PCR. 

FAA Staff: Submit a Policy Clarification (PC) request to the FAA Policy Support Team (PST) when the
source of funding for the adoption subsidy income has been verified as Title IV-E and HEAplus does
not exclude the income. When the verification provided does not include enough information to
identify the funding source for the adoption subsidy, submit a PC to PST.

 

Legal Authority

This requirement applies to the following programs:

Program

Legal Authorities

ALTCS

SSI-MAO

Medicare Savings Program

42 CFR 435.145

42 CFR 435.227

42 CFR 435.403(g) and (k)

Adult

Caretaker Relative

Pregnant Woman

Child

KidsCare

42 CFR 435.603

42 CFR 457.10, 300, 301 and 315

42 CFR 435.403(g) and (k)