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FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 a. The FNS unit is not required to report changes in medical expenses during the CP. b. If a Simplified Reporting FNS unit reports a change in medical expenses that would increase benefits during the CP, request verification of the reported change in medical expenses prior to acting on the change. Send a DSS-8650. Do not terminate benefits if the FNS unit fails to provide verification. c. Do not react to the change if a FNS unit reports a change in medical expenses that would decrease benefits. d. One-time-only medical expenses incurred and billed in a previous CP but not reported until after the CP expires, are not allowed as a deduction unless the expense is under a repayment plan. If the expense is under a repayment plan, allow a deduction as a recurring expense. See 340.14, B. Example: Certification Period – 12/98 – 11/99 Incurred and First Billed Reported Allowable Deduction 5/99 5/99 Entire expense in 5/99 as a supplement or prorated over 5/99 – 11/99. 5/99 11/99 Entire expense in 11/99 as a supplement or prorated over new CP. 5/99 12/99 None, unless set up under a repayment plan. Allow as a recurring expense. 8. Budgeting One-time-only Expense During the Certification Period a. Prorated over the remaining months of the current CP (including the month reported); or b. The entire expense is allowed in the month reported. If allowed all in one month, a supplement must be issued for the month the expense is reported. B. Recurring Medical Expenses 1. Recurring medical expenses are those expenses that can be reasonably expected to continue. This includes such expenses as prescriptions for a chronic condition, regularly scheduled doctor visits, etc. 2. There are two types of recurring medical expenses. a. Monthly expenses, and