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3400.00.00 BUDGETING AND BENEFIT CALCULATION

This chapter discusses the budgeting of income, income deductions, and the calculations necessary to determine financial eligibility. Specific information includes: • Income Budgeting Principles (Section 3405) • Budgeting Self-Employment Income (Section 3410) • Budgeting Boarder Income (Section 3415) • Rental Income (Section 3420) • Budgeting Educational Income (Section 3430) • Lump Sum Calculation (Section 3435) • Contract Sale of Real Property (Section 3437) • Benefit Calculation (MED 1) (Section 3455) • Benefit Calculation (MED 2) (Section 3460) • Benefit Calculation (MED 3) (Section 3465) • Benefit Calculation (MED 4) (Section 3470) • 1619 Medicaid Budgeting (Section 3475) • Buy-In Procedures and Effective Dates (Section 3480).

3405.00.00 INCOME BUDGETING PRINCIPLES Financial eligibility is based on the best estimate of income and circumstances which will exist in the month for which the assistance is considered. This estimate should be founded upon the most complete information available to the DFR as of the authorization date. This eligibility determination requires knowledge of an individual's and/or AG's current, past, or anticipated future circumstances. A presumption that current or historical trends will continue in the future cannot be made. Use of historical trends is appropriate if there is reason to believe, with supporting documentation, that the trends will continue. For MED 1, 2 and 4, prospective budgeting rules require that the AG's assistance for a given month be based on the income expected to be received during that month.1 Actual income is budgeted for each of the three retroactive months prior to the month of application.2

For MAGI-based income methodology, when determining eligibility at initial application, financial eligibility is based upon current monthly income and family size. Current income can be used to establish retro eligibility, for MAGI only, when IEDSS forms such coverage.3 Unless there is a significant difference in income received in the retro months, use current monthly income for retro MAGI coverage. If actual income is non-reflective of current or future income, LO may use annual earnings to calculate current monthly income. LO office must explain income calculations in case notes.