Reasonable compatibility is a test for determining if the amount of reported income is reasonably compatible with income verified electronically or from other sources at application for medical benefits or at REDE.
When reported income is LESS than the applicable medical program standard and the income verification obtained from another source is MORE than the applicable medical program standard, perform the reasonable compatibility test to determine if additional verification or information about the reported income is required.
Reported income is reasonably compatible with verified income when the Federal Poverty Level (FPL) of the income reported on the application or REDE is within 5% of the income verification obtained from another source.
If the reported income is greater than the income standard for the individual's household size, the individual is not eligible due to excess income.
IES determines reasonable compatibility of reported income at application and at REDE when electronic sources of income are available through clearances.