Change in treatment of work expenses for disability-linked Medi-Cal beneficiaries

DHCS has issued instruction to the counties regarding the retroactive exclusion of impairment-related and blind work expenses for all disability-linked Medi-Cal cases going back to 12/1/90.  Counties are to make these changes when a case comes to its attention and review systems and cases to reestablish eligibility for those who were discontinued or denied for this reason.

Until DHCS develops appropriate worksheets, counties are directed to use SSI/SSP definition and methodologies to determine eligibility.  The exclusion for IRWE is applied before the one-half earned income deduction, while the BWE exclusion applies after the half earned income deduction.  These exclusions both apply before the determination of SGA level.  Attached to the letter are examples of deductible expenses and detailed explanations of the income exclusion applications.  DHCS ACWDL 14-42 (12/10/14).