The averaging period is the 12 full calendar months prior to the month for which the LA/ISM determination is needed. (See the example in SI 00835.475F.1.a.).

The averaging period is the full months (up to 12) that the household has been in existence. The period may include months later than the determination month if they have elapsed at the point the determination is being made. (See the example in

SI 00835.475F.1.d.).

If the household has been in existence less than 1 full month, the averaging period begins in the month the household came into existence and extends to the month in which the determination is being made. (The beginning and ending month may be the same month. See the example in SI 00835.475F.1.c.).

Although the actual duration of the averaging period may be less than 12 months, the pro rata share should be based on a responsible household member's best estimate of what the expenses would be if the household maintains its existence for at least 12 months. Accordingly, it is appropriate to consider seasonal fluctuations of expenses when averaging expenses for any household that has been in existence less than 12 months.

The determination month is the month of effective filing.(See SI 00835.475E.4. if a Preefectuation Review Contact (PERC) is being conducted.

The determination month is the effective month of the breakpoint (whether the breakpoint is developed on an initial claim, a redetermination, or a timely report). (SI 00835.510)

The determination month for averaging is the month the redetermination is initiated. The redetermination period of review does not determine the averaging period.

If, during the redetermination, an average is determined in developing a breakpoint, do not average for the 12 months prior to the initiation date. Assume the average from the most recent breakpoint remains the same.

In the following situations, the determination month is:

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  the month the individual requests a reevaluation of their living arrangement basis and/or ISM;

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  the month for which a determination is needed of the actual value of ISM when the individual moves from a household where they were subject to the one-third reduction (VTR) to a new residence;

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  the month in which a Preeffectuation Review Contact (PERC) interview is conducted for a medical allowance (e.g., by DDS, ALJ, etc.), if more than one year has elapsed between the date the application is received and the date that the PERC interview is conducted.

  EXCEPTION: If during a PERC interview an average is obtained in developing a breakpoint, an average of the expenses for the 12 months prior to the month the PERC interview is conducted is not necessary. Assume the average from the most recent breakpoint remains the same.