When the household reports onetime medical expenses, allow the expense only when the person reports and verifies the expense before it becomes past due. Onetime medical expenses can include hospital costs, purchase of prescription glasses, or dental work expenses. When an insurance company or vendor pays a portion of the expense, do not allow the expense until you verify the amount the household will actually owe.
Once the household verifies the expense, the household may choose one of three ways to deduct the expense from household income.
- Deduct the entire expense the month incurred or when the bill is due.
- Average the expense over the remaining months of the current certification period.
- Average the expense over a scheduled length of a payment plan.