Connecticut MSP Income Disregard Calculation — How DSS Counts Your Income

Your parent's gross Social Security check says $2,900 a month. The Connecticut QMB income limit is $2,807. At first glance, they are $93 over the line. The $20 general disregard would bring countable income to $2,880 — still $73 over the QMB limit — so that disregard alone would not put them in range.

The Published Limits Already Include State Disregards

One critical point that trips up almost everyone: Connecticut's published MSP income thresholds ($2,807 for QMB, $3,073 for SLMB, $3,272 for ALMB) already incorporate the state's expanded Section 1902(r)(2) income disregards. You should not subtract the standard $20 general disregard from these published figures — doing so double-counts the disregard and gives a falsely generous result.

What the published limits represent is the maximum gross income that will qualify after DSS applies its own methodology. The calculations below show how DSS applies each disregard to countable income.

Income Types That DSS Excludes Entirely

Several income sources are completely excluded from the MSP income calculation:

• Supplemental Security Income (SSI) — not counted at all
• Veterans Affairs Aid and Attendance pension benefits — excluded under CGS § 17b-95 and Public Act 25-95
• VA non-service-connected disability pensions — also excluded under PA 25-95
• Non-recurring lump-sum gifts
• Energy assistance payments (LIHEAP)
• SNAP benefits

The veterans pension exclusion is particularly significant. A senior receiving $1,800 in Social Security plus $1,200 in VA Aid and Attendance has a gross monthly total of $3,000. The VA pension is excluded, and the $20 general disregard leaves $1,780 of Social Security countable toward MSP. That puts them well within QMB range.

Earned Income Disregards for Working Beneficiaries

If the applicant or their spouse still earns wages or self-employment income, DSS applies a two-part disregard:

1. The first $65 of gross monthly earned income is excluded
2. Then 50% of the remaining earned income is excluded

For example, a senior who earns $500 per month working part-time: DSS subtracts $65, leaving $435, then disregards half ($217.50). Only $217.50 of that $500 counts toward MSP income. Combined with Social Security, this can keep a working beneficiary well within eligibility thresholds.

General Unearned Income Disregard

The first $20 per month of unearned income — or earned income, if unearned income is less than $20 — is disregarded. This applies broadly across all MSP categories.

Household Income Rules

DSS counts income differently depending on household composition:

Single person living alone — only their income counts against the single limit.

Single person living with an adult child — the adult child's income is never counted, regardless of whether the child claims the parent as a tax dependent. Room and board payments from the child count as unearned rental income, subject to standard expense deductions.

Married couple, both applying — combined income is evaluated against the couple limit.

Married couple, only one applying — DSS evaluates combined income against the couple limit first. If combined income exceeds the couple threshold, DSS then evaluates the applicant's separate income against the single limit. This dual-evaluation policy prevents deeming hardship.

Married and legally separated or living in separate residences due to marital breakdown — only the applicant's income counts against the single limit.

What Asset Income Means

Connecticut has no asset test — but income generated by assets still counts. Interest from savings accounts, stock dividends, and net rental income are all counted as unearned income. The assets themselves (the savings account balance, the stock portfolio, the rental property) are completely ignored.

The Connecticut Medicare Savings Programs & Extra Help Guide includes an income disregard worksheet that walks through each deduction step by step so you can calculate your parent's actual countable income before submitting the application.

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