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MS 5420

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the household elected to receive a deduction for each month an installment payment is due, the deduction may span more than one certification period.

For one-time only, non-reimbursable expenses, the household may elect to receive the entire deduction at one time, have it averaged over the certification period, or receive a deduction for each month an installment payment is due. Monthly installment agreements need not be formal but are verified if questionable. Document the method chosen by the household.

For one-time only, non-reimbursable expenses reported during the last month of the certification period, the household may elect to have the entire deduction considered in the first month of the succeeding certification period, have it averaged over the succeeding certification period, or receive a deduction for each month an installment payment is due. Document the method chosen by the household.

A food benefits household receiving a medical deduction for a one-time only expense continues to receive a deduction as scheduled even if the eligible member dies.

D. For recurring medical expenses, such as attendant care or a regular bill for prescriptions, consider the non-reimbursable expense only in the month the expense is billed. Do not allow recurring medical expenses, which are past due or brought forward from prior billing periods.

E. For fluctuating medical expenses, such as a prescription that fluctuates in cost or frequency of use, obtain verification of all non-reimbursable expenses for the last two months, which are expected to continue, and consider the average monthly amount. Fluctuating expenses do not include one-time bills that are not expected to continue. If the last two months of fluctuating medical expenses do not adequately represent the anticipated expenses for the certification period, more or less than two months of fluctuating expenses can be considered.

F. For medical expenses paid by a credit card, allow only the expense and not the interest. Consider the expense to have occurred when the bill is received. Allow payments made on a loan when the loan is used to pay a one-time only medical expense. Do not allow the interest as part of the expense.

G. For allowable medical insurance charges, only the amount billed for the actual premium can be considered. Any surcharge or billing/handling fee in excess of the premium cannot be considered as part of the deduction.

Example: The household is billed annually for their medical insurance premiums. However, the household chooses to make monthly payments to the company. The company charges an additional fee for the monthly billing statements. Only the annual amount billed, divided by twelve, can be considered as the monthly amount for deduction purposes.

H. Medical expenses must be reported at application, reapplication, and recertification according to the reporting requirements in MS 6735. If the expense is not reported timely, no deduction is allowed.