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Definitions
The following definitions apply to policy on budgeting income.
1. Benefit Month: The calendar month, or partial month, for which the medical eligibility is approved.
2. Prospective Budgeting: A process of determining countable income for the benefit month based on anticipated income expected to be received during that month or during the upcoming certification period.
3. Best Estimate: A calculation of the household's anticipated income, deductions and size during the certification period in all benefit months based on the most current information available. Use this estimate to figure the eligibility and spenddown amounts for each month in the certification period.
4. Anticipating Income: Determining monthly income through a history of past or current knowledge of circumstances and applying those circumstances to future periods. Income that has no history can be anticipated if verification shows the individual will receive this income, such as a signed job offer or employment contract, showing employment dates and expected amount of earnings.
5. Averaging Income: Determining monthly income from an average of income received or expected to be received over a pre-determined period of time. This method is particularly useful for hourly workers whose weekly hours fluctuate.
6. Annualized Income: Determining income for an amount of time by using income from a like season, year, or contract period that is representative of future income. Income can be annualized over 12 months or less, depending on the circumstances of the individual.
7. Stable Income: Income that does not vary in either amount or frequency of receipt such as a set monthly salary.
8. Fluctuating Income: Income that varies in amount or frequency of receipt. This income must be averaged or anticipated.
9. Contract Income: Income received for services or work under a contractual agreement. This income may be received in installments over a specified period, or it may be paid at the end of the period covered by the contractual agreement.
10. Recurring Income Received Less Often than Monthly: Income that is paid quarterly, semi-annually, or annually. For example, military summer camp pay, and bonus and incentive income.