Prepared by The Arc of Indiana
107 N. Pennsylvania Street, Suite 300
Indianapolis, Indiana 46204
317-977-2375 or 1- 800-382-9100

What is MED Works?
MED Works is a new category of eligibility for Medicaid. It is intended for people who are disabled and work, and whose income and/or assets are more than the amounts allowed for Medicaid Disability (the standard Medicaid program.) These workers use MED Works in lieu of spend-down (which is part of the Medicaid Disability program).

Is MED Works available to all people with disabilities?
No. It is only available to people who are disabled and who, because they work, have income (or resources) that exceed the limits for the Medicaid Disability program. If a disabled person’s income and resources are below the limits for the Medicaid Disability program, then that person is eligible for the Medicaid Disability program; he is not eligible for MED Works.

What are the limits for the Medicaid Disability program?
Unmarried - $552 a month (as of January 1, 2003); Married - $829 a month (husband and wife, combined).

Resources (checking and savings accounts, stocks, bonds, CDs, and other forms of liquid assets): Unmarried - $1,500; Married - $2,250 for the couple.

A person who is disabled is also eligible for MED Works if his gross earnings exceed the substantial gainful activity amount established by the Social Security Administration. For 2003, this amount is $800 a month for non-blind persons with disabilities and $1,330 for blind persons with disabilities.

For purposes of income eligibility under MED Works, do impairment-related expenses count when determining a person’s countable income?
No. Impairment-related expenses do not count -- they are excluded when determining countable income. Allowable impairment-related expenses include, but are not limited to, payments for attendant care services, medical devices, prosthetic devices, work-related equipment, residential modifications, and transportation costs. (For more details, contact The Arc. We will provide you with a copy of IAC 2-9-2(b). This is the section of the Indiana Administrative Code that details impairment-related work expenses.)

Can an applicant or recipient of MED Works have as much as $20,000 in a checking or savings account, so long as the account is designated an "independence and self-sufficiency account?"
Yes. A resource disregard for this purpose can be approved, but only if the applicant or recipient submits a plan, in writing, to his caseworker at the local office of family and children. The plan must describe, specifically, the goods and/or services that will be purchased. The plan’s goal must be to increase, maintain, or retain employability or independence. The items to be purchased must be reasonable in terms of the applicant’s or recipient’s ability to achieve the stated goal, i.e., the removal of barriers to employability.

Must the plan be specific as to the goods and/or services that will be purchased?
Yes. A request to save money without specifying goods or services to be purchased within an achievable period of time will not be approved.

Must the plan be for a specific amount? Or, can the applicant/recipient save up to $20,000 without any of the money counting as a resource for Medicaid eligibility?
The amount must reflect the plan. It cannot be open-ended for up to $20,000. For example, if the cost of the goods or services is $10,000, then the independence and self-sufficiency fund will be set at $10,000.

Are there any prohibitions on how this money can be spent?
Yes. Approval will not be given for any goods or services that are otherwise available to the applicant/recipient under Medicaid or any other publicly funded program. Also, items for personal recreational use will not be approved.

Does a MED Works recipient contribute to the cost of medical care?
Yes, depending on income. Unlike spend-down, which is part of the Medicaid Disability and Medicaid waiver programs, a MED Works recipient pays a monthly premium. The premium under MED Works is less than spend-down under the Medicaid Disability and Medicaid waiver programs.

The premium is based on the gross income of the recipient and the recipient’s spouse. It is based on a percentage of the federal poverty level.

No premium is assessed if income is below one hundred and fifty percent (150%) of the federal poverty level for an individual and married couple. At this time, the premiums are as follows:

What is the income limit for MED Works?
The maximum countable income limit is based on 350% of the federal poverty level for a family of one. Effective July 1, 2002, the standard is $2,585 a month.

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