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Child Care Assistance Program Policy Manual Issued 04/2019 Changes in income or expenses 8.1.12 Income increase Do not increase the family’s copayment during the 12 month eligibility period. Workers may enter verified or unverified income increases in MEC2 but are not required to enter these. See Chapter 6.21 (Family copayment) for more information. If a family’s income increases but does not exceed 85 percent SMI, there is no impact on the family’s benefits until their next redetermination. The worker may inform the family that verification will be required at redetermination. If a family’s income increases and exceeds 85 percent SMI, the family is ineligible. Follow instructions in Chapter 7.4 (Verification – 12 month eligibility period) to request verification and terminate the family’s eligibility if verification is not received or verification confirms that the family is over 85 percent SMI. If a family’s income increases and it is unknown if the increase puts the family’s income over 85 percent SMI, the worker may send a Memo or Special Letter to the family telling them they must report and verify if the change puts them over 85 percent SMI for their family size. See Chapter 7.4 (Verification – 12-month eligibility period). If no further information is received, do not take an adverse case action against the family. If it is later discovered that the change puts the family over 85 percent SMI, assess an overpayment from the date of the change. Income decrease If a family reports a decrease in income to the child care worker: • If the family submits verification of the income decrease, the worker must determine if the decrease is an accurate projection of future annualized income. - If the decrease is an accurate projection of annualized income and the change would result in a decreased copayment, the worker must enter the change in MEC2.  The worker must take action to reduce the copayment, including approval of eligibility results and Service Authorization results. • A case note is recommended if the worker does not take action on a verified income decrease. • Do not enter unverified income decreases in MEC2, as this may result in the copay inappropriately decreasing. See Chapter 6.21 (Family copayment) for more information. Expense decrease Do not increase the family’s copayment during the 12 month eligibility period. Workers may enter verified or unverified expense decreases in MEC2 but they are not required to enter these decreases. See Chapter 6.21 (Family copayment) for more information.