The CAO or CU will allow specific deductions from the income of each SelectPlan family member before comparing the total family income to the income limit for the family size. 55 Pa. Code § 140.82 55 Pa. Code § 140.81
There are no unearned income deductions for SelectPlan. 55 Pa. Code § 140.82
Each employed member of the SelectPlan family is allowed certain income deductions for expenses related to employment or self-employment.
The CAO or CU will allow the earned income deductions in the order listed below: 55 Pa. Code § 140.81
1. Work expense deduction of $120 for all applicants/recipients and employed family members.
2. Continuous earned income incentive deduction of 50% for the applicant/recipient and family members if they qualify to receive the incentive.
3. Dependent care expenses. See Section 311.622.
The CAO or CU will allow the 50% earned income incentive deduction for each employed person included in the SelectPlan family if the person is qualified to receive the incentive. 55 Pa. Code § 140.82
A pregnant woman who was only receiving “presumptive eligibility/PS-17” under Healthy Beginnings is not considered a recipient for purposes of allowing the earned income incentive deduction.
The 50% earned income incentive deduction is allowed for an employed person who is:
A SelectPlan recipient or applicant who received SelectPlan in one of the four calendar months prior to the month of application.
NOTE: A family member who is not actually receiving benefits is not considered a recipient of SelectPlan.
A SelectPlan family member who has received TANF benefits or has received, or is currently receiving, MA in a TANF-related category including Healthy Beginnings in one of the four calendar months prior to the month of application or prior to the month the family member is included; or
A SelectPlan family member who has received cash assistance or has received, or is currently receiving, MA in a GA-related category in one of the four calendar months prior to the month of application or prior to the month the family member is included, and whose child or stepchild in the household was simultaneously receiving TANF, MA or SSI benefits.
Once eligibility for the SelectPlan earned income incentive has been established for an individual eligibility for the SelectPlan earned income incentive for that individual need not be reviewed again, unless the individual has left the SelectPlan household and returned or the SelectPlan case is closed.
Important: There is no incentive eligibility test for SelectPlan. If the employed individual does not meet one of the above criteria, the CAO or CU will not apply the incentive deduction to that person's earnings.
NOTE: Receipt of SSI, Healthy Horizons, or other SSI-Related MA categories do not qualify an individual to receive the earned income incentive deduction for SelectPlan.
When an employed SelectPlan recipient applies for MA for herself or another family member she does not qualify for the 50% earned income incentive deduction for MA unless she received MA in one of the four calendar months prior to the MA application or she meets other MA criteria that would qualify her for the incentive
See Sections 360.213, 360.223, 361.213, and 361.221.
An employed SelectPlan family member is entitled to a deduction for the cost of care for a dependent child or an incapacitated person if:
The child or incapacitated individual lives in the household.
NOTE: The child or incapacitated individual does not need to be a member of the SelectPlan household. Proof of this expense should be obtained before allowing the deduction for a child or incapacitated person who lives outside the household.:
No other sound plan can be made for the person's care.
The amount of the deduction will be the actual cost up to a maximum of:
$175 per month - for each child two years of age or older or incapacitated individual when the individual works full-time.
$150 per month - for each child two years of age or older or incapacitated individual when the individual works part-time.
$200 per month - for each child under age two regardless of whether employment is full or part-time.
Updated February 14, 2012, Replacing June 4, 2010