Policy

Medical expenses are allowable as a deduction for NA budgetary units(g) with participants who are elderly or have a disability. (For additional information regarding who are considered elderly or a participant with a disability, see Budgetary Units with Special Circumstances .) The medical expenses must belong to and be billed to the participant who is elderly or has a disability.

A $35 disregard is applied to the budgetary unit’s combined medical expenses, regardless of the number of elderly or participants with a disability that are included in the case. When eligible, the budgetary unit receives one of the following medical expense deductions:

● The Standard Medical Deduction (SMD). The SMD net amount is $145 ($180 minus the $35 disregard equals $145).

● The actual amount, minus the $35 disregard when expenses are more than the $145 SMD amount.

Any of the following NA participants are eligible for a medical expense deduction when the budgetary unit’s combined out-of-pocket medical expense is greater than $35:

● Elderly participants or participants with a disability. (See Elderly or Have a Disability - NA Special Considerations for specific requirements)

● Deceased participants when all of the following requirements are met:

The deceased participant would have been eligible for the deduction in the month the expense was billed.

The remaining budgetary unit participants are legally responsible for the bill.

● Participants who are eligible for and receiving Supplemental Security Income (SSI). When the participant begins receiving SSI, allow excess medical expenses incurred from the later of the following:

The date of the NA application.

The date when SSI eligibility begins.

FAA verifies the out-of-pocket medical expenses before allowing one of the following deductions:

● At least $35.01 when using the SMD.

● All expenses when the expenses exceed $180 per month.

The higher medical expense deduction is allowed for the benefit of the budgetary unit.