For cases in spenddown status, IES recalculate the spenddown amount when one of the following changes occurs:
- Change in income. IES determines new countable monthly income amount and compares it to the Income Standard.
- Change in assets (AABD Medical only). IES recalculates the amount of nonexempt resources for comparison to the resource limit, when the client acquires a new resource or verifies that a resource is no longer available (not simply reduced). For a LTC EDG determine if the transfer is allowable when the client verifies that the resource is no longer available.
- Change in persons in the Income Standard. When there is a change in the number of persons in the Income Standard, IES recalculates the countable monthly income, and for AABD Medical nonexempt resource, if changed. If the number of persons has changed, compare income, and for AABD Medical resource, to the new Income Standard and resource limit.
Notify the client of the new spenddown amount.
If spenddown is reduced to where the case is immediately eligible for Medicaid coverage, authorize the coverage beginning with the first day the reduced spenddown was met.