Connecticut HUSKY C: subtract the unearned income disregard from each spouse's own income #10458

Problem

Connecticut's aged, blind and disabled Medicaid pathway (HUSKY C) subtracts the unearned income disregard from each assistance unit member's own unearned income. PolicyEngine instead subtracts a couple disregard (2 × the individual standard from 2024) once, from the couple's combined unearned income. When one spouse has less unearned income than the individual disregard, the model deducts up to the full individual disregard ($562 a month in 2026) too much.

Law

• UPM 5030.15, section A: "unearned income disregards are subtracted from the unit member's total gross monthly unearned income."
• UPM 5045.10, section C.1: "applied unearned income is calculated by reducing the gross unearned income amount by the appropriate disregard based upon living arrangements." Section E: "The assistance unit's total applied income is the sum of the unit's applied earnings, applied unearned income, and the amount deemed."
• The individual standard rises each January 1 (UPM 5030.15 B.1.a). It is $562 in 2026 (DSS Program Standards Chart, as of 1/1/2026).

Current code

_apply_ct_husky_c_exclusions in policyengine_us/variables/gov/hhs/medicaid/income/_apply_medicaid_optional_senior_or_disabled_exclusions.py computes max_(unearned_monthly - income_disregard, 0). For a couple, unearned_monthly is the couple's combined unearned income and income_disregard is disregard.couple[CT].

Example (2026)

A couple: one spouse has $21,400 a year of unearned income and the other has none.

Under the UPM the couple is over the income limit. The model finds them eligible.

Proposed fix

• Add a by-state bool parameter, senior_or_disabled.income.disregard.applies_per_member (CT true), rather than another state == "CT" test.
• For couples in those states, subtract the individual disregard from each member's own monthly unearned income, floor each at zero, and sum.
• Keep the couple parameter for the other states.
• Add YAML cases: one spouse below the individual disregard, and both spouses above it.

Related

• Update Medicaid aged, blind and disabled pathway disregards and asset limits (CA, CT, MN, MO, AR, OK, SC) #10364 sets the 2026 Connecticut values ($562 / $1,124). Its comment on disregard/couple.yaml points to this issue.