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All County Letter No. 24-59 Page Two PROJECT CHANGES The following changes to the Project will take effect October 1, 2024: • The SMD amount will increase to $150; • The Standard Utility Allowance offset will increase to $4; and • The Innovation Evaluation component will be removed from federal reporting requirements. Unless noted in this letter, all other Project policy is unchanged. Please refer to ACL No. 17-35, ACL No. 21-117, and ACL No. 21-117E released on January 11, 2022, for additional details regarding the Project, including a list of qualifying medical expenses. Standard Medical Deduction Amount Under the Project, households who verify medical expenses within the range of $35.01 to $185.00 per month will now receive a standard medical deduction of $150. Households with medical expenses above $185.00 per month may verify and claim actual expenses over $35. When a household claims medical expenses above $185.00 per month but does not provide verification of expenses above $185.00 per month, that household may receive the SMD based on verified expenses between $35.01 to $185.00. SMD Eligibility Reference Table: Verified Medical Expenses Eligibility $35.00 a month and under Not eligible for medical deduction $35.01 to $185.00 a month Eligible for the SMD (i.e., $150.00) $185.01 a month and over Eligible to deduct actual expenses over $35.00 (i.e., $150.00+) Failure to verify medical expenses is not a basis for denying or discontinuing a case. When a household does not verify medical expenses, they will not receive the deduction. The CWD is required to assist applicants and recipients in securing documents and should do so with permission from the household. The SMD is a monthly deduction, only verified monthly medical expenses or one-time expenses (that can be averaged over 12 months) totaling $35.01 or more qualify an applicant or recipient for the SMD. Eligible households must be informed at application and recertification about the new medical deduction amount and how to claim the SMD or verify medical expenses above