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Chapter: 2400 Budgeting Income Program: MSSI, SFP 43 Remember: For applications, budget actual income for months available instead of computing an average. If you are prorating income, begin prorating in the month it is received in a month for which benefits are requested. For example, if an individual is requesting benefits beginning in July, and receives an annual payment every October, no income from the October payment would be counted in the budget until October. Then, schedule a partial for September to start counting the prorated income effective October.

Step 1: Is the individual eligible for Medicaid for all months following the process described in passage 2440.0510, Step 4?

If yes, go to Step 2. If no, you must count the income for the month in which it is actually received. You cannot prorate and create eligibility.

Example: Ms. Porter receives $1300 a month from a pension and receives an annuity of $200 quarterly. Her $1300 pension is budgeted with partials scheduled to budget the $200 annuity for the month received. Ms. Porter must be switched to Medically Needy for one month of every quarter, unless she elects to set up an income trust.

Step 2: Does the individual have fluctuating income?

If yes, go to Step 3. If no, budget the monthly income.

Step 3: Compute average monthly countable income as follows:

1. For weekly income: multiply by 4.3. 2. For biweekly or semimonthly: multiply by 2.15. 3. For income received quarterly, semiannually, or annually: divide by the number of months in the period it is intended to cover (quarterly by three, semiannually by six, annually by 12).

Example: Ms. Lucy receives a pension from Canada semiannually. The amount fluctuates based on the conversion rate. Following the guide in passage 2440.0509 for estimating income, the amount of biannual payment is $50. It has not varied more than $5. In addition to the Canadian pension, she receives $1000 per month in SSA. In all months she is eligible ($1000 total income in five months and $1050 in the sixth month are less than the current income limit). Therefore, you can average six months of Canadian pension payment ($50 divided by six), and enter $8.33 in HHIP on AFMI along with the $1000 in SSA. Because the Canadian pension has not varied more than $5.00, the averaged income is included in the budget until the next complete review. 2440.0600 ROUNDING (MSSI, SFP) When it is necessary to divide because of averaging or prorating, round the resulting amount to the nearest cent as follows:

Step 1 - Perform the division to three decimal positions; that is, to three positions after the decimal point. Step 2 - If the third decimal position is five to nine, round the amount to the next higher cent. Step 3 - If the third decimal position is four or less, round the amount to the next lower cent (that is, drop the third decimal position).