F Contract or Seasonal Income

Revised 06/14/2018

 

Policy

How contract or seasonal income is treated depends on the coverage group:

Non-MAGI groups:

Contract or seasonal income is counted in the month received.

MAGI groups:

• When the income is received at least monthly and will not fluctuate over the 12-month period starting with the month of application or renewal, the income is counted based on how often it is received. See MA604D for details. 
• When the income is expected to fluctuate, use the tables in sections 1 and 2 below to determine how to count the income.

1) Treatment of Contract Income for MAGI Groups

 

If the contract is...	Then...
A one-time contract that ends between the application or renewal month and the end of the calendar year	Divide the income that will be received from the application or renewal month through the end of the calendar year by the number of months in that period to get a monthly equivalent.
For contracts that extend into the next calendar year, contracts that are anticipated to be renewed	Divide the income that will be received in the 12-month period beginning with the application or renewal month by 12 to get a monthly equivalent. Example Contract periods that cover more than one calendar year Example Contract anticipated to be renewed

 

 

2) Treatment of Regular Seasonal Income for MAGI Coverage Groups

When seasonal income is anticipated to be about the same as in the past, the total anticipated amount for the year is divided by 12 to get a monthly equivalent.

Example Seasonal income

 

Definitions

Term	Definition
Contract Income	A set income amount or payment schedule received under the terms of a contract.
Seasonal Income	Regular seasonal income is income that: Fluctuates based on season or is only received during a certain season; and Can reasonably be anticipated based on history or other proof.

 

Legal Authority

Program	Legal Authorities
ALTCS	20 CFR 416-1111 42 CFR 435.945, 948,and 952
SSI MAO MSP FTW	20 CFR 416-1111
Caretaker Relative Pregnant Woman Child Adult KidsCare	42 CFR 435.603 R9-22-1422, 1423 and 1424