SR 17-33 Dated 10/17

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION – Division of Family Assistance (DFA)

 

FROM OFFICE OF THE DIRECTOR, DFA:

Terry R. Smith

DFA SIGNATURE DATE:

October 11, 2017

FROM OFFICE OF THE DIRECTOR, OMBP:

Henry Lipman

OMBP SIGNATURE DATE:

December 5, 2017

AT (OFFICE):

Division of Family Assistance (DFA)

TO:

District Office Supervisors

SUBJECT:

MAGI Treatment of Long-Term and Short-Term Disability Benefits

EFFECTIVE DATE:

October 30, 2017

 

SUMMARY

 

This SR releases clarifications to policy regarding treatment of long-term and short-term disability benefits for MAGI categories of assistance only. Part 511 of the Medical Assistance Manual was revised accordingly.

 

POLICY

 

At the request of the Medicaid Program Specialist, policy regarding MAGI treatment of long-term and short-term disability benefits has been clarified as follows:

The rule on the taxability of benefits paid is the same for both short-term and long-term disability policies:  

●

If insurance premiums are paid with either the employee’s pre-tax dollars or by the employer, the benefits paid out are taxable and will be counted in MAGI. Taxable benefits are treated as unearned income.

●

If insurance premiums are paid with either the employee’s after tax-dollars or by the employee outside of work, the benefits paid are not taxable to the recipient and will not be included as taxable income or counted in MAGI.

 

Long-Term and short-term disability benefits for Non-MAGI categories of assistance are counted as unearned income.

 

NEW HEIGHTS & NH EASY SYSTEMS PROCEDURES AND IMPLEMENTATION

 

Taxable benefits that are counted in MAGI and treated as unearned income should be entered into Heights as “Annuity/Trust/Insurance.”

 

Non-taxable benefits that are not counted in MAGI should be entered into Heights as “Other (All/Non-MAGI).”

 

POLICY MANUAL REVISIONS

 

Revised Medical Assistance Manual Topics

 

PART 511                                        INCOME TYPES: BENEFITS

 

IMPLEMENTATION

 

The revisions released in this SR are effective October 30, 2017.

 

CLIENT NOTIFICATION

 

No special client notification is planned or needed.

 

TRAINING

 

No special training is planned or needed.

 

DISPOSITION

 

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

 

DISTRIBUTION

 

This SR will be distributed according to the electronic distribution list for DFA 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 www.dhhs.nh.gov/dfa/publications.htm, effective January 2, 2018. Additionally, this SR, and printed pages with posting instructions, will be distributed under separate cover to all internal hard copy holders of the Family Assistance Manual.

 

DFA/SVW:s