Computing Medical Expenses 430-05-55-20-05

(Revised 01/01/04 ML2893)

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The client can choose to have current medical expenses, paid or unpaid computed as follows:

• Averaged over the remainder of the certification period.

• Used as a one-time expense for the next month.

• A monthly installment can be used for the period of time it has been agreed upon for the household to pay the balance.

 

This agreement can be verbal or implied (as long as the medical provider is accepting payment, there is an agreement).

 

The worker must assist the household in deciding which method provides the household with the greater benefit.

 

If the averaging or monthly installment computation is used, a one-time expense is treated separately. Do not change the averaged amount currently being used for the certification period. For installment payments, they are allowed only through the month the expense would have been paid.

 

Example:

A household has ongoing monthly medical expenses of $100 and the household timely reports a one time medical expense of $250 for glasses on March 5. When calculating benefits for the month of April, the ongoing monthly medical expense of $100 is allowed and the household has the option of using the $250 deduction as follows:

• The one time medical expense of $250 can be averaged over the remaining months of the certification period.
• Allowed as a one time medical expense of $250 for April, when calculating benefits for the month of May the medical expense is not allowed.
• If the household had agreed to a monthly installment of $50 for the glasses, the $50 would be added to the $100 ongoing monthly medical expenses for the next five months.