Situation C

The client receives a notice in October (around the 5th) that his/her VA benefit is increasing effective November 1. The client waits until s/he has actually received the increased check on November 3 to inform the worker. The worker makes the necessary budget change for December.

1. Did the client report the change timely? No. The client became aware of the change in income on October 5 but did not inform the worker until November 3. The client did not report the change within the required 10 days.
2. Did the worker take proper action? Yes. The worker took immediate action but was unable to reduce the budget until December. The worker could not make the budget change for November because the client was entitled to adequate and timely notice. Based on the increase in income, the budget change would have been adverse.
3. Was there an error in Medicaid benefits? Yes. Even though the worker took the necessary action as soon as s/he became aware of the change, the client failed to report the change within the required 10 days. If the client had acted properly, the budget could have been corrected for November, allowing the client proper notice. Consequently, the benefits for November were in error.

(Rev. April 22, 1987)