Mich. Admin. Code R. 330.8242 - Ability-to-pay determinations based on total financial circumstances
Rule 8242.
(1)
If a responsible party's ability-to-pay is determined pursuant to section 819
of the mental health code, 1974 PA 258, MCL 330.1819, all the following
provisions apply:
(a) The financial
determination based on the responsible party's total financial circumstances
must consider all the following as specified in the process and table in
subrule (2)(i) of this rule:
(i) Qualifying
income and protected income.
(ii)
Net liquid assets and protected assets.
(iii) Applicable poverty guidelines for
family size.
(iv) Excess medical
expenses.
(v) Court-ordered
payments, including those payments from a divorce decree.
(vi) Student loan payments.
(vii) Additional tax obligations assessed by
municipal, county, state, or federal taxing authorities.
(b) If the responsible party is the
individual and is a family of 1 who has no expenses other than room and board
expenses in an inpatient, specialized residential, or supported independent
housing, an alternate full financial determination under subrule (2) of this
rule must be completed that does not take into consideration all the provisions
specified in R 330.8242. This alternate full financial determination must only
include the following:
(i) Qualifying income
and protected income.
(ii) Net
liquid assets and protected assets.
(iii) The personal needs allowance under the
medical assistance program or its successor.
(iv) Expense deduction equal to the provider
payment rate for appropriate living arrangements allowed under the medical
assistance program or its successor.
(c) When determining ability-to-pay for an
individual receiving inpatient services, one half of any compensation paid to
the individual for performing labor under section 736 of the mental health
code, 1974 PA 258, MCL 330.1736, must be protected.
(d) Protected assets must be the same asset
limit amounts allowed for the Medicaid group 2 category under the medical
assistance program or its successor.
(e) The department shall develop policies,
procedures, and other tools for use in calculating a responsible party's
ability-to-pay under these rules.
(2) The public mental health system full
financial consideration ability-to-pay process and table is described as
follows:
(a) Determine the percent of poverty
specified as the current federal minimum mandatory income level to qualify for
medical assistance programs or its successor as specified in the patient
protection and affordable care act of 2010,
Public Law
111-148 , or its successor.
(b) Determine net assets by subtracting all
costs incurred to liquidate liquid assets, including protected assets, from
liquid assets.
(c) Determine
qualifying income.
(d) Deduct from
qualifying income to determine total income available for cost of care for all
the following:
(i) Protected
income.
(ii) Poverty guideline for
family size at percent or poverty determined in subdivision (a) of this
subrule.
(iii) Excess medical
expenses.
(iv) Court ordered
payments, including a divorce decree.
(v) Student loan payments.
(vi) Additional tax obligations assessed by
municipal, county, state, or federal taxing authority. The result is income
available for cost of care.
(e) Divide qualifying income from subdivision
(c) of this subrule by the poverty guidelines for family size at 100% of
poverty and convert to a percentage.
(f) Match percentage determined in
subdivision (e) of this subrule to the table in subrule (3) of this rule to
determine the percent of income available for cost of care to charge as
ability-to-pay.
(g) Multiply the
percentage determined in subdivision (f) of this subrule by the income
available for cost of care determined in subdivision (a) of this subrule. The
result is the annual ability-to-pay from income.
(h) Add net assets from subdivision (b) of
this subrule to the annual ability-to-pay from income determined from
subdivision (g) of this subrule. The result is the annual
ability-to-pay.
(3) The
following income and ability-to-pay crosswalk table must be used in the
determination of the percent income for subrule (2)(f) of this rule.
Qualifying Income as a Percent of applicable poverty guidelines. |
% Of Income charged as Ability- to-Pay |
100% |
0% |
101 - 200% |
10% |
201 - 250% |
15% |
251 - 300% |
20% |
301 - 400% |
25% |
401+ |
30% |
(4) The alternate calculation process for
full financial consideration for ability-to-pay is as follows:
(a) Determine net assets by subtracting all
costs incurred to liquidate liquid assets and protected assets from liquid
assets.
(b) Determine qualifying
income.
(c) Deduct from qualifying
income, as applicable, all the following:
(i)
Protected income.
(ii) Personal
needs allocation.
(iii) Expense
deduction equal to the provider payment rate for appropriate living
arrangements as allowed under the medical assistance program or its successor.
The result is the income available for the cost of care.
(d) Add net assets from subdivision (a) of
this subrule to income available for cost of care from subdivision (c) of this
subrule. The result is the annual
ability-to-pay.
Notes
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