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1283 (07/2026) Chapter 8: Examples • Chapter 8: Examples Example 4: Alice is determined service eligible and approved for March through February of the following year with a liability of $150/month. 1. At application on March 8th, Alice provides proof of an allowable medical cost that was charged to a credit card on December 18th. Alice shows that the original cost was $500, the entire amount was charged to the card, and Alice has been paying $100 on the first of each month to the card starting in January. Original cost $500 Prior payments -$200 Original cost remaining $300 Deduction coded $100 March - May $100/month deduction is allowed for 3 months even though the balance of the credit card may not be paid off due to interest, fees, or other charges. 2. April 20th, Alice provides proof that she charged another $1500 for an allowable medical cost to her credit card along with $300 in non-allowable costs. She intends to continue paying the same $100/month to the card. Deduction balance $100 Additional deduction +$1,500 New deduction balance $1,600 Deduction coded $100 through August of next year 3. In March, Alice provides proof that she paid off her credit card using her tax returns. The deduction is removed for April. Example 5: Ally takes four name brand and two generic drugs consistently each month. At $5 and $2 co-payments, the amount of $24 can be anticipated until the next renewal and adjusted if the Ally reports a change in prescriptions. Example 6: Tran has unstable medical conditions and changes prescriptions each month. Tran’s costs cannot be anticipated, so Tran needs to report costs monthly and the liability requires adjustment monthly. Example 7: Xavier pays a $30 co-payment every three months for a 90-day prescription. Convert by dividing $30 by 3 months and applying $10 per month to the anticipated costs projected until the next renewal.