420.1 Purpose

The purpose of this section is to describe the policy and procedures on household requirements to report changes. It covers what changes must be reported and when they are required to be reported.

420.2 Household Responsibility to Report Changes

420.21 Simplified Reporting Requirements

Effective October 1, 2008, all households are subject to simplified reporting requirements.

Under simplified reporting (SR) requirements households must report changes only at recertification or when their gross income exceeds 130 percent of the federal poverty level. The 130 percent is determined based on the household size at the time of certification.

Households must report this change no later than 10 days from the end of the calendar month in which the change occurred, provided the household has at least 10 days within which to report the change;

If the household also receives benefits from another program that has more extensive reporting requirements, such as, but not limited to TCA, MA, TDAP, or PAA, it must follow the reporting requirements for that program.

NOTE: Even if the household receives assistance from a program with more extensive reporting requirements, there is no SNAP QC error or overpayment if the household does not report the change for the other program.

Example: Ms. A receives SNAP and TCA for herself and one child. She began a new job that pays $1,000 monthly. She did not report this change as required for TCA and is overpaid for TCA. Since her income is below the 130 percent simplified reporting income level for her household size, there is no SNAP overpayment.

Able-bodied adults without dependents (ABAWDs) are required to report when their hours fall below 20 hours per week or 80 hours per month.

Households with income that exceeds 130 percent of the federal poverty level (SNAP gross income test):

Categorically eligible and elderly/disabled households that have income exceeding the SNAP gross income limit (but not the net income limit) have no further reporting requirement until recertification or there is a reported change.

Example: Mr. and Mrs. B receive Social Security retirement benefits in the amount of $1,600. Both are over 60 years old. Their income is over the gross income limit for a two person household, but with their high medical expenses, they meet the net income test and are eligible for a SNAP benefit (and a state supplement if their allotment is less than $30). Mr. and Mrs. B do not have a reporting requirement until their next recertification. This household is given a 24 month certification period, and they must report any changes at the 12-month contact.

It is important to provide customers with the program reporting requirements at application and recertification. The Eligibility and Enrollment (E&E) System notices will reflect the simplified reporting requirements.

Case managers must review and take action on any reported change in a household situation that the local department becomes aware of, regardless of how the local department was made aware of the change, to determine if the reported change requires adjustment to household benefits.

Example 1: Mary Smith was employed part-time ($10.10 per hour for 15 hours per week). When she was recertified for SNAP in April for the certification period May through October, her household size was 3 people. In June, Ms. Smith’s hours increased to 25 hours per week and she received a pay increase to $10.75 per hour.

At the time of the recertification 130% of the poverty level for a household size of three was $2,213 per month. Ms. Smith’s gross monthly earnings are now:

$10.75 per hour

x 25 hours per week

$ 268.75

$269 (drop the cents)

x 4 weeks per month

$1,076 gross monthly earned income

Since Ms, Smith’s income is less than the 130% of the federal poverty level identified at recertification, she is not required to report the change.

Example 2: Ms. Smith’s daughter moved out of the house in July, but Ms. Smith was not required to report the change until recertification.

In August, Ms. Smith’s hours increased to 40 hours per week and she received another pay increase to $11.00 per hour. Ms. Smith called the case manager and reported the change in income. She then sent in her pay stub.

$11.00 per hour

x 40 hours per week

$440 per week

$440 per week

x 4 weeks per month

$1,760 per month

Because Ms. Smith reported and verified the change, the case manager takes appropriate action in CARES to make the change in income effective at the end of the adverse action period.

Example 3 Same scenario as above except, Ms. Smith has an argument with her daughter, who calls the case manager and reports she has moved out and is no longer part of the SNAP household. The case manager is required to take appropriate action on the change even though Ms. Smith was not required to report it.

Changes are considered reported by the household on the date that the local department receives the report via mail, via telephone conversation, personal visit by the household, or electronic device (myMDTHINK, fax, or e-mail).

No household-caused over issuance/overpayment is created for customers not reporting changes when they are not required to report under simplified reporting requirements. The only customer caused simplified reporting over issuance that can occur is if the customer fails to report when income exceeds 130%.

Note: Local department failure to act on reported information could result in an agency error. To avoid being charged with an agency error, it is important to narrate thoroughly when you correctly postpone action until recertification on a reported but unclear/unverified change in earned income.

Do not impose any additional reporting requirements on households.

420.22 Customer Notification of Simplified Reporting (SR) Requirements

At the application or redetermination interview, the case manager determines whether the customer is eligible for SNAP and, if eligible, explains the SR requirements to the household.

420.23 Certification periods for Simplified Reporting Households

E&E will assign at least a 24 month certification period to all households in which all adults are elderly or disabled and have no earned income but are required to be contacted every 12 months. No interview is necessary at the 12 month contact. See Section 107 of this manual on ESAP and MSNAP certification periods.

Migrant and seasonal farm worker households must be assigned a certification period of at least 4 months.

E&E will assign a 12 month certification period for all other households except ABAWDS unless you know the household will be ineligible in the near future.

420.3 Change Report Form

The local department:

Provides households a DHS/FIA 491, Change Reporting Form to report the required changes, and pays postage for the household to mail the report.

Acts on changes reported by the household over the telephone, through myDHR, by fax or email, in person, or by other electronic means, in the same manner as those reported on the change report form.

Provides a change report form to newly certified households at the time of certification and at recertification if the household needs a new form.

Sends the household a new change report form, whenever a change is reported.

420.4 Local Department Action on Changes

The local department will:

Take prompt action on all changes to determine if the change affects the household’s eligibility or allotment.

Exception: Do not act on changes in medical expenses that you learn from a source other than the household and which, in order to take action, require the case manager to contact the household for verification.

Document the reported changes in the case file, provide another change report form to the household and notify the household of the receipt of the change report form, even if there is no change in the allotment.

Notify the household of the adjustment, if a reported change affects the household’s eligibility or allotment.

Advise the household of any additional verification requirements.

Document the date of a reported change. The date of the change is the date the change report form is received or the date the local department is advised of the change over the telephone, by a personal visit, or electronic means.

If the change takes place in the future, such as a participant reporting that he or she got a new job and will get the first paycheck on a date two weeks in the future, make the change effective the date of the first pay and set an alert to check for the paystub.

Restore lost benefits to a household if the local department fails to increase benefits within the time limits described in section 420.7 of this manual.

420.5 Increase in Benefits

420.51 Normal Changes

For changes that result in an increase in a household’s benefits, other than changes described in section 420.52 below, the local department will make the change effective no later than the first allotment issued 10 days after the date the change was reported to the local department.

Example: A $30 decrease in income reported on May 15th would increase a household’s June allotment. The same decrease reported on May 28th would increase the household’s allotment no later than July 1.

The local department may make a normal processing change effective earlier than the first allotment issued 10 days following the date the change is reported/verified.

NOTE: In the second part of the example in A. above, the case manager could increase benefits for June. Local departments that choose this option must apply it to all households and not on a case-by-case basis.

Expedited Changes

The local department will make a change that results in an increase in benefits effective no later than the first allotment issued ten days after the date the change was reported under the following conditions:

The addition of a new household member; or

A decrease of $50 or more in the household’s gross monthly income.

Make an expedited change effective no later than the month following the month in which the change is reported.

Issue a supplementary benefit to households when they report an expedited change too late to adjust the following month’s allotment.

Example: A household reporting a $100 decrease in income at any time during May is entitled to an increase in June’s allotment. If the household reported the change after May 20th and it is too late to increase the allotment by June 1, the local department must issue a supplemental benefit for June.

420.6 Verification - Increase in Benefits

Obtain required verification (as described in Section 408.8, Verification at Interim Change) prior to taking action on a change that results in an increase in benefits.

Allow the household 10 days from the date the change is reported to provide verification.

If the household provides verification within the 10-day period, the time frame for taking action runs from the date the change is reported.

Example: The household reports a decrease in income of $25 on April 20 and provides verification on April 28. This household is entitled to increased benefits effective in May.

If the household fails to provide verification within 10 days from the date the change is reported the time frame for taking action runs from the date the household provides the verification.

Example: A household moves and reports an increase in rent. On April 20, the local department requested verification of rent because it was questionable. Verification was not provided until May 10. The local department will make the change no later than the June issuance.