1. (a) For each applicant or recipient, the household income is:

   1. (1) the sum of the MAGI-countable income (as calculated under §366.1109 of this subchapter (relating to Calculation of MAGI-Countable Income)) for each individual in the applicant's or recipient's household (as determined under §366.1107 of this subchapter (relating to Determination of Household Composition)); and
   2. (2) less an income disregard equal to five percentage points of the Federal Poverty Level for the applicable family size, as permitted by 42 CFR §435.603(d)(4).

2. (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. (1) the sum of the MAGI-countable 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):

      1. (A) the applicant or recipient;
      2. (B) the applicant's or recipient's parents; and
      3. (C) the applicant's or recipient's spouse;
   2. (2) less an income disregard equal to five percentage points of the Federal Poverty Level for the applicable family size, as permitted by 42 CFR §435.603(d)(4); and
   3. (3) additional deductions allowed for spend down.

Source Note:The provisions of this §366.1113 adopted to be effective January 1, 2014, 38 TexReg 9467.