| (a) For each applicant or recipient, the household
income is:
(1) the sum of the individual income (as calculated
under §366.1109 of this subchapter (relating to Calculation of
Individual Income)) for each individual in the applicant's or recipient's
household composition (as determined under §366.1107 of this
subchapter (relating to Determination of Household Composition));
and
(2) less a standard income disregard equal to five
percentage points of the Federal Poverty Level for the applicable
household size, as permitted by 42 CFR §435.603(d)(4).
(b) For an applicant or recipient for the Medically
Needy Program under Subchapter H of this chapter (relating to Medically
Needy Program), the household income is:
(1) the sum of the individual income (as calculated
under §366.1109 of this subchapter for the following individuals
in the applicant's or recipient's household composition (as determined
under §366.1107 of this subchapter):
(A) the applicant or recipient;
(B) the applicant's or recipient's parents; and
(C) the applicant's or recipient's spouse;
(2) less a standard income disregard equal to five
percentage points of the Federal Poverty Level for the applicable
household size, as permitted by 42 CFR §435.603(d)(4); and
(3) additional deductions allowed for spend down.
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