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Chapter: 2400 Budgeting Income Program: MSSI, SFP 36 2440.0201 Prospective Budgeting (MSSI, SFP) Prospective budgeting is a method by which eligibility and benefit levels are based on the assistance group's composition and income circumstances as they exist in the month for which benefits are being calculated. This can be either a past, current or future month. When budgeting prospectively for a future month, the estimated anticipated income and circumstances may be based on what occurred in prior months if those months are considered representative of the assistance group's continued situation. Prospective budgeting may also be based on the amount the individual can anticipate to receive. All assistance groups are subject to prospective budgeting. 2440.0210 Budgeting Methods (MSSI, SFP) Although SSI direct assistance uses RMA methodology, MSSI eligibility determinations and patient responsibility will continue to be computed using prospective budgeting. 2440.0211 Retrospective Budgeting-SSI Direct Assistance (MSSI, SFP) SSA uses retrospective budgeting for SSI cash assistance. (Retrospective budgeting is not used for MSSI or SFP.) In the following situations, SSI does not use retrospective budgeting.

When the individual initially becomes eligible for SSI, the benefit amounts for the first and second months are computed using the income from the first month of eligibility.

After a period of ineligibility the benefit amounts for the first and second months of the new eligibility periods are computed using the income from the first month of eligibility. This is to avoid using income from a period of ineligibility to determine the benefit amount.

Example: An individual is terminated from SSI effective May for excess income. Her income decreases in September and the individual reapplies for SSI. The income amount received from September would be used in computing the SSI amount for September. 2440.0212 Deeming Eligibility Determinations (MSSI) The following policy is applicable only to MEDS-AD, Medically Needy, Protected Medicaid, QMB, SLMB, QI-1, WD and EMA.

For eligibility determinations when there are beginning and ending deeming situations, the effective month of change is the month following the month of change.

Example: If a spouse left the assistance group in April and is not expected to return, the effective month of change is May. For the May eligibility determination, there would be no deeming of income. 2440.0300 INCOME DISREGARDS (MSSI, SFP) This section presents policy on the following:

1. earned income disregard, 2. standard disregard, 3. student earned income, 4. work expenses of the blind, 5. ordinary and necessary expenses, 6. optional deduction, and 7. unearned income overpayment.