(a) Scope. The Texas Health and Human Services Commission (HHSC) prepares an institutional eligibility budget to determine financial eligibility for a person or couple in an institutional setting, if the person or couple:
  (1) applies for retroactive coverage; or
  (2) applies for or has eligibility redetermined under a federally optional Medicaid-funded program for the elderly and people with disabilities as described in §358.107 of this chapter (relating to Coverage Groups).
(b) Individual budget. In preparing an eligibility budget for a person who meets the criteria in §358.433 of this division (relating to Special Income Limit) and §358.436(a) of this division (relating to Budget Types for an Institutional Setting), HHSC:
  (1) counts the person's income in accordance with §1612 of the Social Security Act (42 U.S.C. §1382a);
  (2) counts the person's resources in accordance with §1613 of the Social Security Act (42 U.S.C. §1382b);
  (3) applies the individual resource limit in accordance with 20 CFR §416.1205; and
  (4) applies the special income limit effective the month of eligibility determination.
(c) Couple budget. In preparing an eligibility budget for a couple who meets the criteria in §358.433 of this division and §358.436(b) of this division, HHSC:
  (1) counts the income of both spouses in accordance with §1612 of the Social Security Act;
  (2) counts the resources of both spouses in accordance with §1613 of the Social Security Act;
  (3) applies the couple resource limit in accordance with 20 CFR §416.1205; and
  (4) applies the special income limit, effective the month of eligibility determination.
(d) Institutional companion budget. In preparing an eligibility budget for a person who meets the criteria in §358.433 of this division and §358.436(c) of this division, HHSC:
  (1) applies spousal impoverishment treatment of income and resources under 42 U.S.C. §1936r-5, counting income of both spouses in accordance with §1612 of the Social Security Act and resources of both spouses in accordance with §1613 of the Social Security Act;
  (2) follows resource eligibility in accordance with 42 U.S.C. §1396r-5;
  (3) bases income eligibility on the income of the person in the institutional setting; and
  (4) applies the special income limit effective the month of determination.
(e) Less than 30 consecutive days. In preparing an eligibility budget for a person or couple in an institutional setting who does not meet the criteria in §358.433 of this division, HHSC applies the criteria in §358.435 of this division (relating to Noninstitutional Eligibility Budgets).

Source Note: The provisions of this §358.437 adopted to be effective September 1, 2009, 34 TexReg 5497