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9.12.3 Reasonable Compatibility Test Reasonable compatibility will first be tested based on the household’s total countable income as reported to the agency or verified through other sources. This test will determine whether the member is required to provide verification of earnings. If the member-reported earnings amount is not reasonably compatible (based on the household’s total reported income), verification of earnings received during the last 30 days will be required at the same time verification is required for unearned income, self-employment, or tax deductions. A second verification request will be required if the initial test leads to a determination of reasonable compatibility, but the earnings are no longer reasonably compatible after other income types or deductions have been verified. If earnings are determined to be reasonably compatible, the amount reported by the member should be used to determine eligibility and premium amounts for health care. If the earnings are later verified (for example, because verification is required for another program), the verified earnings must be used to determine eligibility and premium amounts for health care. Note For simplicity, the examples below include households with earned income as the only source of income. It is important to remember that reasonable compatibility is based on the individual’s total countable income, not just their earned income amount.

Example 1 Joe is a single childless adult with an income limit of $1,330 for BadgerCare Plus. He reports that his earnings are $500 per month. Equifax is not available for his employment. SWICA reports that his quarterly earnings are $2,700, for a monthly amount of $830.77. Because his income is below the income threshold using either amount, his reported information is considered reasonably compatible with the SWICA reported income, and the agency must use the $500 amount he reported without requesting additional verification.

Example 2 Lon is a single childless adult with an income limit of $1,330 for BadgerCare Plus. He reports that his earnings are $900 per month. Equifax reports that he is paid twice a month at $675 per paycheck, for a monthly amount of $1,350. Lon's reported income is below the income threshold and the Equifax reported income is above the income threshold, so the 20% threshold test is applied. The income reported by Equifax ($1,350) is greater than the 20% threshold amount (120% of $900, or $1,080). Therefore, his reported information is not considered to be reasonably compatible, and the agency must request additional verification.

Example 3 Melanie is a single childless adult with an income limit of $1,330 for BadgerCare Plus. She reports that her earnings are $1,400 per month. CARES will base the denial on this reported income amount, regardless of the income amount from SWICA or Equifax.

Example 4 Michelle applies for BadgerCare Plus for herself and her two children. She reports that she started a job last month and is earning $1,400 per month. Because the job is new, neither SWICA nor Equifax data is available. Since these data exchanges are not available, the reasonable compatibility test will not be