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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 428 Determination of Unstated Income

3. Medical Expense Not Reimbursed by Insurance (doctor bills, dentist bills, drugs, health insurance premiums, etc.) 4. Transportation (car loan payments, insurance premiums, gasoline, tires, oil, mass transportation fares, etc.) 5. Food, Meals and Household Supplies (groceries, cleaning supplies, restaurant meals, etc.) 6. Credit Purchases and Loans (furniture bill payments, finance company payments, etc.) 7. Other (life insurance premiums, legal services, traffic fines, cigarettes, alcoholic beverages, etc.)

E-428 Determination of Unstated Income MS Manual 07/01/20 The amount of unstated income is the difference between the known monthly income and the monthly paid living expenses. Reported income may include net earnings from self-employment and income from other sources, including cash or in-kind income. Reported income is the aggregate of unearned and earned income of the following people living together as one household: 1. Applicant(s) 2. Individual(s) whose income is deemed to the applicant and 3. Ineligible children, if any, who would be considered in computing the amount of deemed income where there is a deeming situation When unstated unearned income is determined, the individual will have an opportunity to explain how living expenses are met. If the stated living expenses include obligations which do not represent actual expenditures (because bills are not being paid), the amount of living expenses will be adjusted. If there are loans which account for the money used to pay living expenses, the individual should provide a statement of specifics of the loan(s) and verification of loan transaction(s). Verified proceeds from loans received and used for living expenses can be subtracted from the amount of unstated unearned income left after subtracting reported income from living expenses. The use of resources may also be used to explain how living expenses are met. When unstated unearned income is counted, the individual will receive a notice of decision that an inclusion of unstated income was made based on a comparison of living expenses with reported income because of excess living expenses.