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They lived in the same household. Each entered an ALF/AFCH in that month; Each applied for AG in that month; and Each were determined eligible for AG for that month. This situation can exist only in the month of application. A household is common living quarters and facilities under domestic arrangements that create one economic unit. Sharing a room in an institution is not living in the same household. Processing Applications An eligibility determination begins with the receipt of a written application, continues through the verification, evaluation and documentation of each eligibility factor, and is completed at the point an eligibility decision is made, all appropriate notices are sent, and computer systems are updated. AG and Medicaid eligibility are determined from the month of application forward. If appropriate, eligibility for retro Medicaid is determined using the Medicaid manual. There is no retro eligibility for AG. Eligibility Established Eligibility is established when it is determined that the individual meets all eligibility requirements. Ineligibility is established at the point it is determined the individual does not meet an eligibility requirement. The worker must use the Evaluation of Eligibility for AG to document the evaluation of each eligibility requirement. Application Time Standards Action to approve or deny a case must be taken within 45 days of receipt of an application. The 45-day processing period begins on the date a signed application is received in the agency. The date the approval or denial notice is mailed to the individual must be within