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MS 5440

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Volume 2 - Supplemental Nutrition Assistance Program (SNAP) MS 5440 – R. 8/1/14 – OMTL – 471 Disallowable Medical Deductions

The following medical expenses are disallowed:

A. The cost of health and accident policies, such as those payable in lump sum settlements for death or dismemberment, or income maintenance policies, such as those that continue mortgage or loan payments while the beneficiary is disabled.

B. Any surcharge or billing fee added to the monthly insurance premium.

C. The cost of membership by an insurance company which allows for reduced cost of certain medical expenses.

D. Premium payments on cancer policies that pay the owner of the policy upon diagnosis of cancer.

E. Expenses of spouses or other persons receiving benefits as a dependent of the Supplemental Security Income (SSI) or disability recipient.

F. Expenses for which the household will be reimbursed or for which an insurance company or government program will directly pay. Consider the nonreimbursable portion at the time the amount of reimbursement is verified or when the reimbursement is denied. If the reimbursement status cannot be determined, do not consider the expense and document the case record accordingly.

For example: A joint application is taken for SNAP and Adult Medical (MA) (Z case) on 9/17/25. The SNAP case is approved on 9/7/25. The MA case is approved for Specified Low-Income Medicare Beneficiaries (SLMB) on 10/7/25. As the Supplemental Medical Insurance (SMI) premium is reimbursable, it is not allowed as a medical deduction in the SNAP case. If the MA application is denied, a case change would be made in the SNAP case to allow the medical deduction, and a restoration would be issued if appropriate.

Applicants approved for Qualified Medicare Beneficiaries (QMB) may be due a SNAP restoration as the SMI reimbursement is not effective until the month following the QMB application approval month.

G. Expenses incurred jointly with other household members are not allowed in their entirety. Only the eligible person's expense is deducted. If the eligible person's share cannot be identified, the expense is prorated among the members the expense covers.

H. Medical expenses billed to a SNAP benefits household but are for a nonhousehold member.

I. Items used for medical needs, such as Ensure or Boost, when purchased with SNAP benefits.

J. Food items for “special diets”, such as lean meats and fresh vegetables.

K. Monthly car payments for handicapped accessible vehicles.