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Title 8: Medicaid Page 91 Iowa Department of Health and Human Services Employees’ Manual Chapter E: Income Income Policies for MAGI-Related Coverage… Revised April 11, 2025 MAGI-Related Budgeting Procedures… Countable income from self-employment not received on a regular weekly, biweekly, semimonthly or monthly basis that represents a person’s annual income shall be annualized to arrive at the monthly amount to be used to determine eligibility. Countable self-employment income is the gross income less allowable expenses. When a self-employment enterprise which does not produce a regular weekly, biweekly, semimonthly or monthly income has been in existence for less than a year, income shall be averaged over the period of time the enterprise has been in existence to arrive at a projected monthly amount to be used to determine eligibility. If the enterprise has been in existence for such a short time that there is very little income information or income in the period of time is not a good indicator of future income, the worker shall establish, with the cooperation of the applicant or member, a reasonable estimate of the projected monthly income to be used for eligibility. Self-employment income and/or the cost of producing self-employment income (expenses) may change. A change in self-employment income and expenses are defined as follows:  Change in self-employment income is a change that will result in a significant change in the person’s annual income.  Change in self-employment expenses is an established, permanent, ongoing change in the operating expenses of a self-employment enterprise that will result in a significant change in the person’s annual net income. When an applicant or member reports that a change in self-employment income or expenses has occurred and the person’s self-employment income has been annualized, the department shall recalculate the countable self- employment income on the basis of the change. A change in operating expenses or income that occurs as a result of seasonal business fluctuations is not considered a change for this purpose.