Quoted from upthread but got messed up a drop...
The 5% disregard works in an interesting way and is a drop less than you may think it is.
https://questions.medicaid.gov/faq.php?id=5010&faqId=9486The way it works is, the income amounts are based on a % of the FPL (Federal Poverty Level).
https://www.healthcare.gov/glossary/federal-poverty-level-FPL/For a family of 4, the FPL is $24,250 a year.
NJ Family care says if you make up to 133% of that ($32,253) the parents and kids can be on. (There are much higher limits for just the kids).
If you are making a little over $32,253, the disregard says that there is an amount that can be ignored. That amount is 5% of the FPL so 5% of $24,250 is $1,212. You are able to be making $33,465 and still be on ($1,212 + $32,253).
It is NOT a calc of 5% of your income....
SO if you are making $33,900, they don't say, ignore 5% of his income, knock off $1,695 and pretend he is only making $33,205 and eligible....