IDP versus HFP: Which statement is true?

IDP versus HFP: Which statement is true?

• A. IDP is prorated daily and may not exceed $250
• B. HFP is prorated daily and may not exceed $250
• C. IDP is monthly
• D. HFP is monthly

Answer: (A)

IDP payments are calculated on a daily basis within the pay period, so you receive only the portion that corresponds to the actual days you qualify. There’s a fixed cap of $250, meaning the total cannot exceed that amount even if daily accrual would suggest more. This combination—daily prorating with a $250 maximum—is what makes the true statement. HFP uses a different method, so attributing daily prorating or the same cap to HFP isn’t correct.

IDP payments are calculated on a daily basis within the pay period, so you receive only the portion that corresponds to the actual days you qualify. There’s a fixed cap of $250, meaning the total cannot exceed that amount even if daily accrual would suggest more. This combination—daily prorating with a $250 maximum—is what makes the true statement. HFP uses a different method, so attributing daily prorating or the same cap to HFP isn’t correct.