.07 Consideration of Household Income.

A. The applicant shall report the income of any family member, except for the income of a member that does not file a federal tax return and is not claimed as a federal tax dependent.

B. Determining Countable Household Income.

(1) In determining an applicant's financial eligibility for the Maryland Children's Health Program, the applicant's current household income is considered.

(2) For the child applicant who is neither pregnant nor postpartum, household income shall consist of the income of the child applicant and the following family members when living with the child applicant:

(a) The child applicant's parents; and

(b) At the option of the child applicant's parents, any of the child applicant's siblings.

(3) For the married child applicant who is neither pregnant nor postpartum, household income shall consist of the income of the married child applicant and the married child applicant's spouse.

C. When an individual has regular income the amount to be considered is that which is available or can reasonably be expected to be available for a projected period of 12 months, including the month of application.

D. Treatment of Income.

(1) Countable gross income for the Maryland Children’s Health Program shall be the household income calculated according to MAGI.

(2) MAGI income limits shall be:

(a) Converted from traditional income limits to account for elimination of income disregards.

(b) Increased by 5 percentage points of the federal poverty level for the following circumstances:

(i) When an individual’s income exceeds the Medicaid income standard; and

(ii) The income standard is the highest income standard under which the individual can be determined eligible.

(3) Household Composition. For purposes of determining the income standard applicable to an applicant or recipient, the following rules apply.

(a) An individual plus anyone for whom the individual claims personal exemption shall be included in the federal tax filing unit in the taxable year in which an initial determination or renewal of eligibility is being made.

(b) For an individual who does not file a federal tax return and is not claimed as a federal tax dependent in the taxable year in which an initial determination or renewal of eligibility is being made, the household size shall consist of the individual and the following individuals:

(i) Spouse; and

(ii) Natural, adopted or step children.

(c) In the taxable year in which an initial determination or renewal of eligibility is being made, the household size of a child applicant shall consist of the child and the following individuals:

(i) Natural, adopted, or step parents; and

(ii) Natural, adopted, or step siblings.

(d) In the case of a married couple living together, each spouse shall be included in the household of the other spouse, regardless of whether they expect to file a joint federal tax return in the taxable year in which an initial determination or renewal of eligibility is being made.

(4) No resources or assets test may be applied to an applicant or recipient who is subject to a MAGI-based income test.