MassHealth Updates 2014
Exercises
1. What is Modified Adjusted Gross Income (MAGI)?
MAGI is the new method of calculating income for MassHealth applicants under age 65 and those 65 and older applying under the Caretaker Relative program. MAGI begins with an applicant’s adjusted gross income and adds back in any tax-exempt interest income and Social Security income. Then, certain allowable tax deductions are subtracted. The result is an applicant’s MAGI.
Whenever MAGI is used, the applicant also receives a 5% FPL income disregard. This amount is equivalent to 5% of the FPL for the household size and can be found on the MassHealth FPL chart. (Resource Manual, Rev. March 2014, pg. 161)
2. You are screening a client for MassHealth. She is 52 years old and married with no children. Her income consists of $950/month gross from Social Security Disability. Her husband is 50 years old and working. He earns $1,250/month gross. With this information, is she likely eligible for MassHealth Standard?
No. Her MAGI is $2,200/month ($950 + $1,250). The income limit for someone under 65 in a family of 2 is $1,810. (Pink Sheet, Rev. 3/28/14)
3. After speaking with the above client further, she explains that their “take home” is much lower because her husband pays $500/month in alimony to his ex-spouse. Now, is she likely eligible for MassHealth Standard?
Yes. Alimony is an allowable deduction when calculating MAGI. Her new MAGI is $1,700/month ($950 + $1,250 -$500). (Resource Manual, Rev. March 2014, pg. 161-162; Pink Sheet, Rev. 3/28/14)
4. Circle the people for whom MassHealth will use MAGI in determining eligibility.
Steve is 67 years old and married. He and his wife just had their first child.
Hank is 70 years old and lives alone. He has had Medicare since he was 45.
Maude is 79 years old and married to a man in his twenties.
Harold, Maude’s husband, has Medicare due to a disability.
(Resource Manual, Rev. March 2014, p. 161)
5. What is the monthly income limit for Steve, Hank, Maude, and Harold to qualify for MassHealth Standard?
Steve $2,277/month
Hank $993/month
Maude $1,331/month
Harold $1,810/month (Pink Sheet, Rev. 3/28/14)