MEH 4.1.6 Prospective Income

4.1.6 Prospective Income

Use the self-declared gross income Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. amount when a client is only applying for MA unless that information is deemed questionable. Convert only if the client is applying for other benefits. Do not consider the monthly declared amount “questionable” on the basis of lack of detail regarding hours of work and pay rate per hour.

4.1.6.1 Budgeting Techniques

If the client applies for MA, use actual income in determining eligibility. If the client applies for any other program of assistance in addition to MA, determine eligibility using the appropriate income calculation from the chart below.

Pay Cycle	Income Calculation
Weekly	hourly rate x hrs/week x 4.3 = prospective monthly income
Bi-weekly	hourly rate x hrs/pay period x 2.15 = prospective monthly income
Semi Monthly	hourly rate x hrs/pay period x 2 = prospective monthly income
Monthly	hourly rate x hrs/month = prospective monthly income

If the client applies only for MA, do not use the conversion factors in determining income because the use of the conversion factors may negatively impact the client’s countable income.

Example 1: Mrs. M, who is disabled, worked 20 hours per week at the Ho Chunk casino until recently when she was laid off. She now receives $150 weekly for unemployment. When she applies for MA, the $20 disregard is applied and her countable income of $580 is under the limit of $591.67.

$150/unemployment check X 4 unemployment checks

= $600/month.

$600 - $20 disregard = $580

Example 2: If Mrs. M. also applies for FoodShare her income is determined by using the conversion factor of 4.3, rather than the actual amount received in the month. This changes the determination of her monthly income.

$150/unemployment check X 4.3 unemployment checks/month = $645

When she applies for MA the $20 disregard is applied:

$645 - $20 = $625

Because Mrs. M. has applied for FoodShare and MA, the use of a conversion factor has adversely affected her MA application by increasing her countable income. Her income is now determined to be $625 per month, and exceeds the monthly income limit of $591.67.

$625 - $591.67 = $33.33

As a result she now has a $199.98 deductible, and would not qualify for MA until she met her deductible.

$33.33 X 6 months = $199.98

Since this determination has an adverse affect on the client’s MA eligibility. MA eligibility should be determined manually with actual income.

4.1.6.1.1 Fluctuating Income

If the amount or frequency of regularly received income is known, average the income over the period between payments. If neither the amount nor the frequency is predictable, do not average; count income only for the month in which it is received.

4.1.6.1.2 Prorating Income

Income received on a yearly basis or less often than monthly, that is predictable in both amount and frequency, must be converted to a monthly amount or prorated.

Prorate means "to distribute proportionately."

Example 1: Sally receives a $1,500 Tribal Distribution Payment quarterly. This payment should be prorated for the months between payments. $1,500 is distributed over three months by dividing the amount of money by the number of months between payments. The prorated amount is $1,500/3= $500 a month.

Prorating is applied to a client’s income when the income is received less often than monthly. By prorating, income is distributed evenly over the number of months between payments

Farm and self-employment income (4.2) is either averaged or prorated.

When an assistance group applies, do not count the prorated income until it is received.

Example 2: Joe receives semiannual land contract installments of $900. This equals a monthly income of $150 ($900 prorated over six months). He becomes eligible in May. He receives payments in January and July each year. Do not budget any prorated income until July, the first month of receipt after Joe becomes eligible.

If the group becomes ineligible and reapplies before they receive the next installment, use the same prorated amount as before.

This page last updated in Release Number : 05-01

Release Date: 01/11/05

Effective Date: 01/11/05