Dear Parents:
As you may be aware, the Minnesota Legislature passed legislation during the 2005 Special Session that modified the parental fee calculation for fiscal years beginning on or after July 1, 2005. This change will result in lower parental fees for many parents. The enclosed determination order includes your revised fee for fiscal year 2007 (July 1, 2006 to June 30, 2007).
The following summarizes the revised parental fee calculation:
STEP 1: Calculate the income that we will use to determine your parental fee.
1. Enter your adjusted gross income (AGI) from your 2005 federal taxes. (Line 37 of form 1040 or line 21 of form 1040A). Do not include stepparent income.
2. Enter $2,400 if the child on Medical Assistance (MA) lives with you.
3. Subtract the amount on line 2 from the amount on line 1.
4. Enter the amount of court ordered child support that you pay PER YEAR for the child on MA.
5. Subtract the amount on line 4 from the amount on line 3. This is the income that we will use to determine your parental fee.
STEP 2: Determine the percent of Federal Poverty Guidelines (FPG) for your income.
6. Enter the income from line 5 above.
7. Using the table below, enter the “poverty guideline” for your family size. Your household size includes the natural and adoptive parents and their parents. The child receiving services from MA is included in the household size. Stepparents and step-children are not counted.
|
Family Size |
Annual Poverty Guideline |
|
2 |
$13,200 |
|
3 |
$16,600 |
|
4 |
$20,000 |
|
5 |
$23,400 |
|
6 |
$26,800 |
|
7 |
$30,200 |
|
8 |
$33,600 |
8. Divide the amount on line 6 by the amount on line 7.
9. Round the number on line 8 to two decimal places, and multiply the result by 100. This is the percent of FPG that will be used to calculate your parental fee.
STEP 3: Calculate Your Monthly Parental Fee
Calculation if the number on line 9 is less than 100
10. Your parental fee is zero.
Calculation if the number on line 9 is equal to or greater than 100 and less than 175
11. Your parental fee is $4.00 per month.
Calculation if number on line 9 is equal to or greater than 175 and equal to or less than 545
12. Enter the number from line 9.
13. Subtract 175 from the amount on line 12.
14. Multiply the amount on line 13 by .065 and divide the result by 370.
15. Add 0.01 to the amount on line 14.
16. Enter the number from line 5.
17. Multiply the amount on line 15 by the amount on line 16.
18. Divide the amount on line 17 by 12. This is your monthly fee.
Calculation if the number on line 9 is greater than 545 and less than 675
19. Enter the number from line 5
20. Multiply the amount on line 19 by .075 (7.5%).
21. Divide the amount on line 20 by 12. This is your monthly fee.
Calculation if the number on line 9 is equal to or greater than 675 and less than 975
22. Enter the number from line 9.
23. Subtract 675 from the amount on line 22.
24. Multiply the amount on line 23 by .025 and divide the result by 300.
25. Add .075 to the amount on line 24.
26. Enter the number from line 5.
27. Multiply the amount on line 25 by the amount on line 26.
28. Divide the amount on line 27 by 12. This is your monthly fee.
Calculation if the number on line 9 is equal to or greater than 975
29. Enter the number from line 5
30. Multiply the amount on line 29 by .125 (12.5%).
31. Divide the amount on line 30 by 12. This is your monthly fee.
Note: Your fee will increase if if you can obtain health insurance for your child through your employer at a cost of less than five percent of your adjusted gross income, but you have chosen not to obtain it.