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Medical expenses pending verification of third-party reimbursement are not considered 'past due' until 30 days after the household's receipt of verification of their obligated portion after third party payment. The following expenses are not considered 'past due': 1. One-time medical expenses averaged over the period until the next recertification (e.g., bill for gall bladder surgery). 2. Expenses paid on an installment plan; and, 3. Expenses averaged over the period of intended use (e.g., bill for quarterly health insurance). Intent to pay is not considered when allowing a medical expense. Even if a household states it will not be paying a medical expense, it is used as a medical deduction. If the household states an intention for someone else to pay the medical expense, the expense is being reimbursed and is not allowed as a deduction. Third party payments, such as health insurance payment to providers, are also known as reimbursements. Any medical expense covered by a third party cannot be allowed as a deduction. The non-reimbursable portion of the expense is allowed as a deduction at the time the amount of the reimbursement is received or can be verified. A deduction cannot be allowed until it is verified (e.g., a health insurance policy and a collateral contact confirm the exact obligated amount is the $100 deductible) regardless of the time it takes for the reimbursement. If a household has a deductible before the insurance pays any expenses, the household is allowed the expenses up to the deductible amount regardless of whether it has been paid or met. For example, if a household has a $1000 deductible, they have not met at all, and a $300 medical expense, they are allowed the $300 medical expense. This is because the household is responsible for all medical expenses up to the deductible amount. In addition, if it is verified the insurance company only pays a certain percentage of expenses in excess of the deductible (e.g., co-insurance), the eligibility staff member anticipates expenses and allows the percentage the household is responsible for paying. So, if a household has a $1000 deductible, $1200 in medical expenses and a 30% co-insurance after the deductible, then they would be responsible for paying $1,060 and this would be the allowable medical expense. A household choosing the 'Medically Needy Cash Option' to meet its spend-down is considered to have incurred and paid that amount of medical expenses. Fiscal authorization is not required prior to allowing the deduction. NOTE: The amount of the cash option expense anticipated to be incurred after all recurring monthly medical expenses are averaged continues as long as the household anticipates paying the expense. BUDGETING THE EXPENSE: Households reporting one-time only medical expenses may choose to: 1. Have a one-time expense; or