SR 04-18 Dated 07/04

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the annual July updates to the:

·   NHEP/FAP Standard of Need (SON); and

·   resource deduction figures for Children with Severe Disabilities (CSD).

In addition, this SR releases:

·   revised Adult Assistance and Food Stamp Manual pages incorporating shelter policy released in SR 03-18, dated July 2003;

·   revised Family Assistance Manual pages incorporating Child Care policy released in SR 00-49, dated October, 2000; and

·   a policy clarification indicating that individuals are not entitled to TANF-related extended medical assistance due to Section 1619 status.

BACKGROUND

The annual July update of the SON is mandated by the NH Legislature per RSA 167:7,II, to reflect changes in the cost of living. This year’s SON figures were updated using information obtained from the NH Housing Finance Authority and the IRS, in addition to applying the 2004 Consumer Price Index (CPI) increase to the 2001 DFA Market Basket Survey and Josiah Bartlett Study results.

The annual July update of the CSD resource deduction figures is mandated by State rules He-W 641.04(e). The increase reflects the 2004 Federal Poverty Income Guidelines published in the Federal Register of February 13, 2004.

POLICY

NHEP/FAP Standard of Need Changes

The annual July update to the NHEP/FAP Standard of Need (SON) affects:

·   NHEP/FAP cases closed or denied due to lump sum income;

·   open NHEP/FAP cash cases with a non-sanctioned deemer; and

·   open NHEP/FAP-related medical assistance cases in deductible status with a non-sanctioned deemer.

The SON is used to determine the period of ineligibility for cases receiving lump sum income, and eligibility and benefit amount for cases with deemed income. The increase in the SON may result in shorter periods of ineligibility for those cases that are currently NHEP/FAP ineligible due to receipt of lump sum income, and in less income being counted as available for those NHEP/FAP cases with deemed income.

The maximum SON equals the Basic Maintenance Needs Allowance (BMNA) plus $310, the weighted average of the maximum shelter payment allowances. The 2004 BMNA and SON are noted below:

2004 BMNA and SON

*For household sizes over 12, calculate the BMNA by adding $67 for each additional person to the basic maintenance payment allowance (BMPA) and divide the result by 0.1317. To obtain the SON, add $310 to the BMNA figure.

Lump Sum Calculations

Individuals who receive lump sum payments are ineligible for assistance for the number of months resulting from dividing the lump sum amount (plus any other monthly income) by the SON. Clients whose cases were closed or denied due to receipt of lump sum income may reapply or request a recalculation due to the increase in the SON. If requested, the District Office must recalculate the client’s period of ineligibility. A new Notice of Decision (NOD) will be generated if the recalculation results in a different period of ineligibility.

Deemed Income Cases

The SON is used for NHEP/FAP deeming from parents, including ineligible alien parents, alien sponsors, and three generation deeming. Due to the increase in the SON, less deemed income is counted as available to the client. HEIGHTS will automatically recalculate benefit amounts for open cases with deemed income during the Mass Change. No District Office action is required.

Clients whose cases were closed or denied due to excess deemed income may reapply or request to have their eligibility redetermined due to the increase in the SON. If requested, the District Office must recalculate the client’s eligibility.

Children with Severe Disabilities (CSD) Resource Deduction Increase

The resources of CSD parents are counted as available in determining categorically needy and medically needy CSD medical assistance eligibility and are treated in accordance with TANF-MA policy on resources (see FAM, Chapter 400, RESOURCES).

CSD resource eligibility for medical assistance is determined by reducing the parents’ total resources by the CSD resource deduction for the appropriate household size and combining the balance with the child’s resources. The CSD resource deduction is based upon 50% of the current federal poverty income guidelines.

CSD RESOURCE DEDUCTION FIGURES

POLICY UPDATES TO THE FAM, AAM, AND FSM

The following revisions were made in the FAM, AAM, and FSM to align manual topics with current policy.

·   SR 03-18, dated July 1, 2003, indicated that the Adult Assistance and Food Stamp Manuals would be updated to reflect that if the town or city welfare paid for the assistance group’s shelter, in full or partially, FSS would:

-   treat this income as a vendor payment and exclude it, unless the town welfare agency stated that it intended to pay the client's rent, or a portion of the rent, on an on-going basis; and

-   not reduce the amount of the shelter costs the client was responsible for paying.

The Adult Assistance and Food Stamp Manuals have now been updated to reflect this policy. In addition, the Food Stamp manual was updated to incorporate that if a Food Stamp applicant indicates receipt of local welfare shelter assistance in the month of application, then the Food Stamp shelter cost for the application month is reduced by the amount of the vendor payment. The TANF shelter cost is entered with no reduction. However, as specified above, unless it is indicated that the vendor payment from the local welfare office will be on-going, the FSS must then reinstate the correct Food Stamp shelter cost for the following month.

·   SR 00-49, dated October 1, 2000, released an increase in the minimum age requirements of a license exempt child care provider from 14 to 16 years of age. FAM 808.31, Compliance Requirements, was inadvertently overlooked when making the manual page changes for this policy, but has now been updated accordingly with the release of this SR.

EXTENDED MEDICAL ASSISTANCE DUE TO SECTION 1619 STATUS

Individuals are not entitled to TANF-related extended medical assistance coverage due to Section 1619 Status. Continued medical assistance due to Section 1619 Status applies only to individuals who are eligible for adult categories of assistance. The Family Assistance Manual has been updated accordingly.

SYSTEMS PROCEDURES AND IMPLEMENTATION

July NHEP/FAP SON and CSD Resource Deduction Update

New HEIGHTS will update all reference tables with the new figures effective July 1, 2004, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

Clients Denied or Closed Prior to 7/1/04 Due to Deemed Income or Receipt of Lump Sum

No District Office action is necessary unless a client requests to have their eligibility redetermined or their period of ineligibility recalculated. If a client requests this recalculation, the current SON released by this SR and effective July 1, 2004 will be automatically applied during the recalculation. If the client’s eligibility for assistance or length of ineligibility changes during the recalculation, a new NOD will be generated.

Open Cases With Deemed Income

New HEIGHTS will run an initial query to identify all open/on-going cash cases with a non-sanctioned deemer and all deductible cases with a non-sanctioned deemer whose grant amounts or spenddowns will change during the mass change. The cases identified will be recomputed during the daily production run the evening of June 30, 2004. Cases with deemed income whose grant amounts or spenddowns change will receive the appropriate message reflecting the new benefit level.

Because less deemed income will be counted as available, medical assistance only cases with a non-sanctioned deemer, and cases with a non-sanctioned deemer currently eligible for NHEP/FAP cash assistance but not actually receiving the grant because the amount is under $10 per month, may now become eligible for a cash grant for the first time.

The latter cases that do not have sufficient Benefit Issuance information during the daily production run of June 30, will appear on the MC Exception Report (NMC550RA) with the Reason for Exception listed as "No BI Payment Information." District Offices must rerun eligibility and supply the missing Benefit Issuance information when that screen appears in the driver flow.

NOTE: These cases should be contacted prior to confirmation to be informed of the availability of cash assistance, including an explanation of appropriate NHEP/FAP cash program policies (e.g., work program requirements and the 60-month time limit on receipt of cash assistance). If the client agrees to receipt of cash assistance, explain the process required to establish EFT benefit issuance. If the casehead does not have access to a bank account, explain the process required to establish EBT benefit issuance. When the benefit issuance method has been entered, confirm the case. $10 minimum grant cases confirmed after the mass change will receive a standard opening message from New HEIGHTS. District Offices are not required to refer these cases to the NHEP team, as New HEIGHTS will have already referred mandatory NHEP participants to the NHEP team.

Procedures for CSD Cases

New HEIGHTS will update all reference tables with the new CSD Resource Deduction figures

effective July 1, 2004, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

TANF-Related Extended Medical Assistance Due to Section 1619 Status

New Cases

Do not approve continued medical assistance due to Section 1619 Status to TANF cash or medical assistance recipients.

If SSA provides notification of Section 1619 Status after the case is closed, do not reopen the case for continued medical assistance until:

·   the closing program has been checked; and

·   it is determined that the closing program is not TANF-related.

Current Cases

A Director’s Memo transmitting a report of current recipients who were open for TANF cash or medical assistance prior to going into Section 1619 Status, as well as instructions for closing these cases, will be released in the near future.

CLIENT NOTICE

Assistance groups experiencing a change in eligibility due to the mass change will receive the following text in the "Explanation" section of the Notice of Decision (NOD):

ON JULY 1, 2004, THE NHEP/FAP STANDARD OF NEED, THE RESOURCE DEDUCTION FOR FAMILIES WITH A SEVERELY DISABLED CHILD, AND THE CHILD CARE INCOME LIMITS INCREASED.

NOTE: SR 04-24 released changes to the child care income limits.

POST MASS CHANGE REPORTS

The two reports described below are produced on a daily basis. These reports will be available on CADocView beginning July 1, 2004.

NMC540RA: AG’s Affected by MC

This report lists all cases upon which the Mass Change ran successfully through confirmation. It contains the following information: D.O., Worker Name, Client Name, and Case Number.

NMC550RA: MC Exception Report

This report lists cases that were selected for computation during the Mass Change, but were not confirmed due to some discrepancy in data. These cases require further District Office action. It contains the following information: D.O., Worker Name, Client Name, Case Number, Reason for Exception, and Mass Change Type.

POLICY MANUAL REVISIONS

Revised Family Assistance Manual Topics

PART 175   EXTENDED MEDICAL ASSISTANCE DUE TO SECTION 1619 STATUS

Section 175.01  Open Individuals Who Report New or Increased Earnings

Section 175.03  Individuals Who Request Assistance Due to Section 1619 Status

PART 601, Table A  TANF Basic Maintenance Needs Allowance and Maximum Standard of Need

PART 601, Table D  Children with Severe Disabilities Resource Deduction

Section 808.31  Compliance Requirements

Revised Adult Assistance Manual Topics

Section 627.03  Allocation to a Community Spouse

Revised Food Stamp Manual Topics

PART 601   INCOME LIMITS, PAYMENT STANDARDS, AND ALLOTMENTS

PART 601, Table J  INCOME LIMITS, PAYMENT STANDARDS, AND ALLOTMENTS: Shelter Treatment

Section 603.09  Other Allowable Deductions: Shelter Deduction

IMPLEMENTATION

The changes identified in this SR will be implemented July 1, 2004, and will apply to any new cases processed on or after that date.

CLIENT NOTIFICATION

A public hearing regarding the updated SON figures was held on May 14, 2004.

Besides the regular client notices referenced above, clients will be notified about the updates in the SON and CSD Resource Deduction, as needed, at the next case action or at client request.

TRAINING

No training is planned or needed due to the procedural nature of this SR.

DISPOSITION

This SR may be deleted or destroyed once its contents have been noted and the revised manual topics released by this SR have been posted to the On-Line Manual.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.nh.gov/DHHS/DFA/LIBRARY, effective August 1, 2004.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Family Assistance, Adult Assistance, and Food Stamp Manuals.

DFA/DMS:s