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Apply these three steps to determine an individual’s MAGI-based income eligibility for Medicaid or CHIP: Three-Step Process for Determining Income Eligibility Step 1 • Identify members of the individual’s family who are considered part of his/her household and determine family size Step 2 • Add the income of all the relevant members of the individual’s household Step 3 • Compare total household income to the federal poverty level for the individual’s family size 8 Comparing Results to Eligibility Levels Determining Household Income Constructing a Household Purpose