The steps 1 through 12 numbered below correspond to the steps listed on the blank worksheet.  The Aged, Blind, & Disabled Federal Poverty Level (ABD FPL) Medi-Cal program follows Supplemental Security Income (SSI) income rules but follows Medi-Cal Medically Needy eligibility rules.1

“Ineligible spouse” is a spouse that is not applying for Medi-Cal under the ABD FPL program.

TIP: If both spouses cannot qualify for Medi-Cal with no share of cost as couple, then one of the spouses could qualify as an individual.  The spouse who has the highest medical needs, meaning the spouse that needs no-share of cost Medi-Cal the most, can elect to be the ABD FPL applicant while the other spouse is the “ineligible spouse.”

To be eligible for the ABD FPL program, you cannot exceed the allowable income limits set by the state.  There are income deductions. For instance, you can deduct any health plan monthly premiums, such as a dental, health or vision policy. However, unlike the Medi-Cal Medically Needy programs, you cannot “spend down” excess income on medical expenses to qualify for the ABD FPL program.    

TIP: If there are children in the family, then screen the ineligible spouse and children for a different Medi-Cal no share of cost programs, such as Pickle or the 250% Working Disabled Program.  If they are not eligible for another Medi-Cal no-share of cost program, then screen for Medi-Cal (MN) program.  

Step 1

Enter the combined total of both spouses’ unearned income before any deductions for health insurance premiums or tax withholding. Unearned income includes pensions, state disability insurance and unemployment benefits.  You combine income even if the ineligible spouse has no income.  

TIP:  If you receive Social Security benefits from which Medicare premiums are deducted, then Medi-Cal will pay your Medicare premium directly that month when you meet any of the following:   

• You are eligible for the ABD FPL program,  
• You are eligible for any other Medi-Cal program without a share of cost, or   
• You are eligible for Medi-Cal with a share of cost but you meet your share of cost for that month.  

Step 2

Deduct the $20 unearned income deduction.  

Step 3

Enter the balance, if any. This balance is the total countable unearned income.  

Step 4

Enter the combined total of both spouses’ gross earned income before any deductions.  Earned income includes any income on which Social Security taxes are paid or are payable. Remember, if the ineligible spouse provides IHSS services to the applicant, then the IHSS provider income is not counted.  Also, gross income does not include earned income put into a cafeteria plan for childcare or medical expenses, because that income is not subject to Social Security taxes.2

TIP:  If you are self-employed, your gross earned income means your adjusted gross income – that is, your gross income receipts less IRS allowable deductions.3

Step 5  

Deduct $20 now if you did not deduct it in Step 2. The $20 deduction can only be used once.   

Step 6 

Deduct the $65 earned income work incentive deduction.  

Step 7

Deduct any Impairment Related Work Expenses or IRWEs from the applicant’s earnings. You are eligible to take this deduction if you are under age 65.  If you are age 65 or older, you can take this deduction if you qualified for Medi-Cal or other benefits on the basis of disability before you were 65.  

TIP: IRWEs are out-of-pocket expenses you have both because you work and you have a disability. Examples include attendant care for help before, after and during work; transportation when you cannot use, or reliably use, public transportation because of your disability. IRWEs also include out of pocket medical expenses needed to work even if you would have the same expenses if you were not working.    

Step 8

Enter the subtotal after deducting the unused portion of the $20 any income deduction (Step 5), the $65 earned income deduction (Step 6), and any IRWE deductions from the gross earned income (Step 7).   

Step 9

Deduct 50% of the subtotal entered at Step 8. This is an additional work incentive deduction.  

Step 10

Enter the balance after deducting the amount in Step 9 from the amount in Step 8. This is your total countable earned income. The amounts in Steps 9 and 10 should be the same.  

TIP: For example, if your family’s only income is you earning $500 from teaching and your spouse earning $500 from working at a store then your combined earned income is $1000 per month. If you have an IRWE that costs you $50 per month, then your math for Step 4 through Step 10 looks like this:      

Step 4:       $1000  

Step 5:       $1000 - $20 (any income deduction) = $980  

Step 6:      $980 - $65 (earned income deduction) = $915  

Step 7:       $915 - $50 (IRWE) = $865  

Step 8:       $865  

Step 9:       $865 / 2 = $432.50  

Step 10:     $432.50 (total countable income)  

Step 11

Add together your total countable unearned income (Step 3) and your total countable earned income (Step 10).   

Step 12

Deduct any monthly health insurance premium payments, such as Medi-

Gap, dental or vision insurance. This includes Medicare Part B premiums.4

Step 13

If there are any other people in the Medi-Cal Family Budget Unit (MFBU) that are not applying or eligible for Medi-Cal, including children in the family, deduct a maintenance need allowance (MNL) using the figures in the Maintenance Need Allowance below.  For the MNL deduction for one adult and one child, (Note: a person is a child if they are under 18 or between 18-20 if they are fulltime students), deduct $750 which is listed below as 2*.    

Maintenance Need Allowances – Maintenance Need Level (MNL) (unchanged since July 1, 1989):  

1 - $600, 2* - $750, 2 adults - $934, 3 - $934, 4 - $1100, 5 - $1259, 6 - $1,417, 7 - $1,550, 8 - $1,692  

TIP:  A family of two parents and three children would be a family of five. Exclude the spouse seeking ABD FPL benefits and you have an MNL deduction for the other four in the family. So, you would deduct $1100.   

Step 14

The remainder, after deducting the MNL for any adults or children in the MFBU that are not applying for or eligible for Medi-Cal, is the income counted for determining eligibility of the spouse seeking Medi-Cal under the ABD FPL program.  

TIP: Step 13 and 14 are shown below using the example from Step 10 – your family’s only income is your $500 earnings from teaching and your spouse’s $500 earnings from working at a store to make your combined earned income $1000 per month. If you have an IRWE that costs you $50 per month, then your math for Step 4 through Step 14 looks like this:      

Step 4:       $1000  

Step 5:       $1000 - $20 (any income deduction) = $980  

Step 6:      $980 - $65 (earned income deduction) = $915  

Step 7:       $915 - $50 (IRWE) = $865  

Step 8:       $865  

Step 9:       $865 / 2 = $432.50  

Step 10:     $432.50 (total countable income)  

Step 11:     $0 (unearned income) + $432.50 (total countable income)  

Step 12:     $0 (no monthly healthcare premiums)  

Step 13:     $432.50 - $600 (MNL for non-applicant spouse) = - $167.50 

Step 14:  - $167.50 is less than $0 so your income is $0  

Blank A&D FPL Worksheet for an Adult with an Ineligible Spouse

Step 1	Total unearned income before any Medicare or other deductions
Step 2	Less $20 any income deduction	-20.00
Step 3	Total countable unearned income for couple
Step 4	Gross earned income from both spouses before any deductions
Step 5	Less balance of the $20 any income deduction from step (2) above, if any
Step 6	Less $65 earned income deduction	-65.00
Step 7	Less any Impairment Related Work Expenses for eligible spouse
Step 8	Subtotal
Step 9	Less 50% of the subtotal in Step (5) as an additional work incentive deduction
Step 10	Total Countable Earned Income for couple
Step 11	Add together the total countable unearned income (Step 3) and total countable earned income (Step 10) for total countable income
Step 12	Deduct any health insurance premium payments including Medicare premiums5
Step 13	Deduct the applicable MNL based on family size minus the spouse seeking A&D FPL6
Step 14	Income counted for determining eligibility under the ABD FPL program

Is the amount in Step 13 equal to or less than $1,801 in 2025? If yes, then you qualify for Medi-Cal with no share of cost.

• 1. Cal.Welf. & Inst.Code § 14005.40. All County Wide Directors Letter (ACWDL) 00- 57, 00-68, 01-18, 02-38, 23-03.
• 2. 20 CFR § 416.1110(a); Social Security Program Operations Manual System  (POMS) SI 00820.100-C.1.
• 3. You estimate what your current monthly income is based on last year’s income tax return and the comparison between last year’s adjusted gross income and last year’s gross receipts. If last year your adjusted gross income was 50% of your gross receipts (i.e., $20,000 based on receipts of $40,000), Social Security in determining your income this year will presume that this year your monthly adjusted gross income would be 50% of your total receipts.
• 4. Additional information may be found on the California Department of Health Care   Services (DHCS) All-County Welfare Director Letter (ACWDL) 01-18; MC 176 AD Aged / Disabled FPL group spreadsheet (Revised 10/2020).
• 5. 4 The Medi-Cal program will pay for your Medicare Part B premium directly if you qualify. You will then get your full Social Security check without the Medicare deduction.
• 6. Maintenance Need Allowances: 1 - $600, 2 - $750, 2 adults - $934, 3 - $934, 4 - $1100, 5 - $1259, 6 - $1,417, 7 - $1,550, 8 - $1,692