# Family MO HealthNet (MAGI) Manual

### 1805.030.25.10 Patterns of Income

A pattern of income is used to indicate or predict future income.  Income patterns are typically identified as consistent and recurring.

When determining income eligibility, use the eligibility system to convert income to a monthly amount, whenever possible.

Before income is converted to a monthly amount, determine the average pay period amount.  To determine an average, total all of the pay amounts and divide by the number of paychecks used in the total.

EXAMPLE:  Brittany provided 5 paystubs that total \$1860.  \$1860/5 paychecks=\$372 average pay amount.

 Pay Date Gross Amount 1/1 400.00 1/8 380.00 1/15 360.00 1/22 340.00 1/29 380.00 1860.00  Total

After calculating the average income received per pay period, enter the income with the correct pay frequency selection (such as weekly, biweekly, etc.) in the eligibility system.  Use the eligibility system to convert the averaged income to a monthly amount.

Despite the ability of the eligibility system to calculate monthly income based on average pay and pay frequency, it is necessary to understand how monthly income is calculated manually.  The examples below illustrate the manual calculation process for many income frequencies.

• Weekly – Received once a week.
• EXAMPLE:  Brittany is paid \$320 weekly unemployment.  To convert Brittany’s income to monthly multiply the weekly amount by 4.333, \$320 x 4.333 = \$1,386.56.  Her monthly income amount is \$1,386.56.
• Bi-Weekly – Received every two weeks.
• EXAMPLE:  Sammy is paid every other Friday, or bi-weekly.  He is paid \$8.00 per hour and paid for 80 hours each pay period, or \$640 every two weeks, \$8.00 x 80 = \$640.  To convert Sammy’s income to monthly multiply the bi-weekly amount by 2.166, \$640 x 2.166 = \$1,386.24.  His monthly income amount is \$1,386.24.
• Monthly – Received once a month.
• Semi-Monthly – Received twice per month.
• EXAMPLE:  Ben attests to being paid \$940 semi-monthly, on the 15th and 30th.  He is salaried and does not anticipate any changes.  To convert Ben’s income to monthly multiply the semi-monthly amount by 2, \$940 x 2 = \$1,880.  His monthly income amount is \$1,880.
• Bi-Monthly – Received once every two months.
• EXAMPLE:  Jill is paid \$2,400 bi-monthly, every other month on the 1st.  To convert Jill’s income to monthly divide the bi-monthly amount by 2, \$2,400 / 2 = \$1,200.  Her monthly income is \$1,200.
• Quarterly – Received every three months.
• EXAMPLE:  Frank is paid \$900 quarterly.  To convert Frank’s income to monthly divide the quarterly amount by 3, \$900 / 3 = \$300.  His monthly income is \$300.
• Annually or Yearly – Received once per year.
• EXAMPLE:  Allen is paid \$1,000 annually.  To convert Allen’s income to monthly divide the annual amount by 12, \$1,000 / 12 = \$83.33.  His monthly income is \$83.33.

In some instances, the pattern of income cannot be determined.  This occurs when the income amount and pattern varies, with no consistency.  In this situation, use the past income to determine future earnings.

EXAMPLE:   George sells scrap metal as his source of income. George attests he sold metal in May for \$600, July for \$150, and December for \$400. George states he does not plan to sell anymore for the remainder of the year. George states this is a typical annual pattern for this income. Add together all that George has sold (\$600 + \$150 + 400 = \$1,150) and average it for a monthly amount (\$1,150 / 12 = \$95.83 per month).

EXAMPLE: Sue works through a temp agency.  She works various jobs as assigned therefore her monthly income is not consistent.  She applied in November.  In August she earned \$1,300, September \$150, October \$700.  Sue indicates that she is unsure of her future earnings however she plans to continue working for the temp agency.  Average the previous three months to project future monthly earnings (\$1,300 + \$150 + \$700 = \$2,150 ) (\$2,150 / 3 = \$716.66).  Her projected monthly average is \$716.66.

If the income has an inconsistent pattern, contact the participant to determine the reason and any anticipated changes.  Gather as much information as necessary to make an accurate determination of ongoing income.  Record a detailed comment explaining how the pattern and calculation of income was determined.

See the Create Ongoing Income on an Integrated Case Guide for more about income frequencies and averaging income.