H Allocated Income

 

 

Revised 11/07/2023

Policy

Allocated income is income provided by an ALTCS customer living in an institution or residential facility to a spouse living at home. This income amount is also called the Community Spouse Monthly Income Allowance (CSMIA) and is calculated during the ALTCS customer’s “share of cost” determination. Because the CSMIA calculation is based on standards, the spouse living in the institution may not have enough income available to pay the full CSMIA amount calculated. So, while the amount of allocated income is never more than the calculated CSMIA, it may be less.

Since the allocated income is not court ordered, this income is treated as a gift to the spouse living at home following the policy at MA606AA.

NOTE     Allocated income is only considered as income to the spouse at home when the ALTCS customer gives the income to the spouse.

When the ALTCS customer is giving the allocated amount to the spouse, it is treated as income to the spouse as shown in the table below:

If the customer is eligible for...

Then the treatment is...

  • ALTCS

  • SSI-MAO

  • MSP

Counted as unearned income.

  • FTW

  • ALTCS FTW

Unearned income: 

  • Not counted for income eligibility

  • Not counted for FTW premiums

  • Counted for ALTCS FTW Share of Cost

  • Adult

  • Caretaker Relative

  • Pregnant Woman

  • Child

  • KidsCare

Excluded.

See Allocated Income Calculation Examples for more information.

 

Definitions

Term

Definition

Allocated Income

An amount of an ALTCS customer’s income that is set aside specifically or “allocated” for a spouse living at home.

Share of cost

An amount of an ALTCS customer’s income that the customer must pay toward the cost of long term care services.

 

Proof

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

 

Legal Authority

This requirement applies to the following programs:

Program

Legal Authorities

ALTCS

SSI-MAO

Medicare Savings Program

Freedom to Work

42 USC 1382a(a)

42 USC 1396r-5(d)

20 CFR 416.1102, 1120 and 1123

R9-22-1909

Adult

Caretaker Relative

Pregnant Woman

Child

KidsCare

26 USC 71

26 CFR 1.61-10

42 CFR 435.603

42 CFR 457.10, 300, 301 and 315