Individuals whose income is less than the categorically needy standards on DHS Appendix C-1 are considered categorically needy.

• (1) Categorically needy standards/categorically related to pregnancy-related services.  For an individual related to pregnancy-related services to be categorically needy, the countable income must be less than the appropriate standard according to the family size on DHS Appendix C-1, Schedule I.A., which is 185% of the Federal Poverty Level.  In determining the household size, the pregnant woman and her unborn child(ren) are included.
• (2) Categorically needy standards/categorically related to AFDC.
  • (A) Categorical relationship.  For the individual related to AFDC to be considered categorically needy, the standards on DHS Appendix C-1 schedules must be used.
    • (i) DHS Appendix C-1, Schedule X.  Individuals age  19  years or older, other than pregnant women, are determined categorically needy if countable income is less than the Categorically Needy Standard, according to the family size.  Income standards are 73.1% of the AFDC Need Standard.
    • (ii) DHS Appendix C-1, Schedule I.A.  All individuals under 19 years of age are determined categorically needy if countable income is equal to or less than the Categorically Needy Standard, according to the size of the family.  Income standards are 185% of Federal Poverty Level.
  • (B) Individuals categorically needy/related to AFDC. Individuals who meet the definition of categorically needy and related to AFDC are:
    • (i) All persons included in an active TANF case.
    • (ii) Individuals related to AFDC, whose countable income is within the current appropriate categorically needy standard, but who do not receive TANF assistance.
    • (iii) All persons in a TANF case in Work Supplementation status who meet TANF eligibility conditions other than earned income.
    • (iv) Those individuals who continue to be eligible for Medicaid in a TANF case after they become ineligible for a TANF payment.  These individuals will continue to be considered categorically needy if the TANF case was closed due to child or spousal support, the loss or reduction of earned income exemption by any member of the assistance unit, or the new or increased earnings of the caretaker relative.