Exemption Qualifications for Medical Services Debts
Medical service debts are exempt from Revenue Recapture if the debtor's income was below Poverty (Medical) Income Guidelines at the time of the medical service. (See Minnesota Statute 270A.03 and Minnesota Rules 8165.0300.)
What Does an Agency Need to Determine Exemption Qualification?
Debtors must provide their federal tax return and all sources of income for the tax year they received the medical service to the claimant agency. Use the Poverty (Medical) Income Guidelines chart on this page to determine if the income is at or below poverty.
What qualifies as income?
For this purpose, income is the debtors' federal adjusted gross income plus any of the following income for both spouses:
- Nontaxable income
- Cash public assistance and relief
- Payments received through the Social Security Act
- Workers’ Compensation
- Disability income
- Lump-sum distributions
Note: Child support does not count as income.
Poverty (Medical) Income Guidelines
The following table shows Minnesota's Poverty (Medical) Income Guidelines. We base current year data on Federal Poverty Guidelines and adjust by state guidelines. (See M.S. 270A.03, subd 5.)
Note: If the debtor is married, include both spouses' incomes when applying these guidelines, unless they are legally separated.
Debtor/Dependents |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
---|
Unmarried |
$11,870 |
$12,160 |
$12,360 |
$12,560 |
$12,620 |
$12,897 |
$13,180 |
$13,280 |
$13,500 |
$13,640 |
$14,060 |
1 dependent |
$15,180 |
$15,570 |
$15,830 |
$16,080 |
$16,160 |
$16,515 |
$16,878 |
$17,010 |
$17,290 |
$17,460 |
$18,010 |
2 dependents |
$17,950 |
$18,420 |
$18,730 |
$19,020 |
$19,110 |
$19,530 |
$19,959 |
$20,120 |
$20,450 |
$20,660 |
$21,300 |
3 dependents |
$20,370 |
$20,890 |
$21,240 |
$21,580 |
$21,680 |
$22,156 |
$22,643 |
$22,820 |
$23,200 |
$23,430 |
$24,160 |
4 dependents |
$21,480 |
$22,040 |
$22,410 |
$22,760 |
$22,870 |
$23,273 |
$23,877 |
$24,070 |
$24,470 |
$24,710 |
$25,480 |
5+ dependents |
$22,400 |
$22,970 |
$22,360 |
$23,840 |
$22,730 |
$24,364 |
$24,900 |
$25,100 |
$25,520 |
$25,770 |
$26,570 |