.254 Section 63-503.254(MR) shall become inoperative and Section 63-503.254(QR) shall become operative in a county on the date QR/PB becomes effective in that county, pursuant to the Director's QR/PB Declaration.

(MR) Disallowed expenses. The following expenses are not deductible: (QR) Disallowed expenses. The following expenses are not deductible for change reporting households and QR/PB households: (a) An expense covered by an excluded reimbursement or vendor payment shall not be deductible except for energy assistance vendor payments made under the LIHEAA of 1981. For example, the portion of rent covered by excluded vendor payments shall not be calculated as part of the household's shelter cost. (1) However, that portion of an allowable medical expense which is not reimbursable shall be included as part of the household's medical expenses. See Section 63-502.33 on nonreimbursable medical costs. (2) If the household reports an allowable medical expense at the time of certification but cannot provide verification at that time, and if the amount of the expense cannot be reasonably anticipated based upon available information about the recipient's medical condition, and public or private medical insurance coverage, the CWD shall not deduct the expense. The household shall have the nonreimbursable portion of the medical expense deducted at the time the amount of the expense or reimbursement is reported and verified. FOOD STAMP REGULATIONS (Continued) (b) An expense which is covered by an excluded vendor payment that has been converted to a direct cash payment under the approval of a federally authorized demonstration project [see Section 63-502.2(a)(2)]. (c) Expenses shall only be deductible if the service is provided by someone outside the household and the household makes a money payment for the service. For example, a dependent care deduction shall not be allowed if: 1) another household member or excluded member provides the care, or 2) compensation for the care is provided in the form of an in-kind benefit, such as food. (d) Past-due medical bills determined in accordance with Section 63-503.251. (e) Medical bills paid prior to the month of initial application are not a deductible expense. However, medical bills received during the month of application are an allowable expense, even if the medical service was provided prior to the month of application, provided the household is otherwise eligible.