Memo MC # 3

MEMORANDUM

DATE: September 1, 2001

TO: Adult Public Assistance Manual Holders

FROM: The Policy and Program Development Team

Ellie Fitzjarrald, Chief

SUBJECT: Adult Public Assistance Manual Change #3

We’re pleased to present two significant APA policy changes with this manual change:

Prospective budgeting for non- SSI recipients, and

Transfer of resource penalty.

This change also provides new guidance for anticipating monthly income and makes minor technical corrections.

With prospective budgeting the APA payment will better coordinate with the individual’s circumstances and avoid the benefit fluctuations some recipients experienced under retrospective budgeting. This change is not extended to SSI recipients because APA payments to SSI recipients do not fluctuate from month to month; the APA payment remains the same as long as the individual remains eligible for SSI .

The new APA transfer of resource policy is being implemented to bring us into alignment with SSI . We expect few APA applicants or recipients will transfer resources and be affected by this policy. This new policy only applies to APA . Medicaid has a less restrictive transfer of resource policy that must be considered whenever an APA penalty is applied.

Implementation: Prospective budgeting for non- SSI recipients and the transfer of resource penalty changes are both effective October 1, 2001. All other policy clarifications and changes are effective immediately upon receipt of this manual change.

If you have any questions or comments about this change, please contact any member of the Policy and Program Development Team at 465-3347 or email us at dpapolicy@health.state.ak.us.

The explanation of the manual changes and the affected manual sections are described below.

Explanation of Manual Changes

Old Policy New Policy Section 420-2 , Concurrent Participation in the SSI Program States that an APA client whose income is within SSI limits must be eligible for SSI to be found eligible for APA . Adds an exception that allows APA eligibility when an APA transfer of resource penalty ends before the end of an SSI transfer of resource penalty. Section 425-3 , Procedures for Initial Blindness or Disability Decisions Directs staff to get a completed APA #5 form, ”r;Authorization to Release Medical Information”, from APA applicants who need a state-only disability decision from the DDS . Changes the form to the Med #2 form, ”r;Medical Release of Information”. Section 433-1 , Transfer of Resources States that resource transfers for less than fair market value do not affect APA eligibility, but may affect an individual’s eligibility for institutionalized Medicaid coverage. Adds new policy to implement an APA penalty period for up to 36 months if an individual transfers a resource for less than its value on or after October 1, 2001. Section 440-4 , Estimating Income New Section Provides policy guidance for estimating income prospectively. 441-2 , Unearned Income States that prize income, such as bingo or pull-tab winnings, may sometimes be anticipated in determining prospective eligibility. Changes policy to clarify prize winnings may not be anticipated, even if the individual has a previous pattern of winning. 452-1 , Payment Calculations Describes the retrospective budgeting process used to calculate payments for non- SSI recipients. Adds new policy to implement prospective budgeting for non- SSI recipients. All references to retrospective budgeting have been removed. Examples were also updated with January 1, 2001 payment standards 452-3 , Cost of Living Allowance ( COLA ) Increases When determining eligibility and payment amounts, SSA COLA increases are budgeted prospectively, but other types of income are still subject to retrospective budgeting. Removes references to retrospective budgeting. 480-1 , Reviews States that it is only necessary to confirm Alaska residency and continued receipt of SSI for the annual review process for SSI recipients. States that APA payments to non- SSI recipients remain in retrospective budgeting if there is not a one-month break in benefits. Clarifies that EIS will confirm Alaska residency and continued receipt of SSI . Removes all references to retrospective budgeting. 480-5 , Suspension and Termination States that a person may be retrospectively ineligible for APA , but prospectively eligible for Medicaid. Removes all references to retrospective eligibility for APA .

Manual Change Filing Instructions

Remove Old Pages Insert New Pages C-3 through C-4 C-3 through C-4 H-5 through H-8 H-5 through H-8 Chapter Contents (Chapter 433) Chapter Contents (Chapter 433) M-1 through M-14 M-1 through M-14 Chapter Contents (Chapter 440) Chapter Contents (Chapter 440) N-11 through N-16 N-11 through N-16 O-13 through O-14 O-13 through O-14 Chapter Contents (Chapter 452) Chapter Contents (Chapter 452) T-1 through T-4 T-1 through T-4 T-9 through T-10 T-9 through T-10 X-1 through X-2 X-1 through X-2 X-5 through X-6 X-5 through X-6