400.05 ABD AT-HOME COVERAGE BASED ON FEDERAL POVERTY

LEVELS The following categories of eligibility are limited to those who live at-home or in other private living arrangements whose income eligibility is based on a percentage of the Federal Poverty Level (FPL). The FPL is updated annually as required by Sections 652 and 673 of the Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35) and reflects the previous year’s change in the Consumer Price Index. FPL’s are published after the first of each calendar year (CY) and are usually not effective until March 1st of each CY. Since title II (Social Security) benefits are awarded annual cost of living increase in January benefit checks, it is mandated by federal law that cost of living increase in title II benefits be disregarded for cases using the FPL as the need standard until such time as the new FPL’s are published and implemented each year. The title II increase is disregarded for each applicant and recipient and the increase is also disregarded for an ineligible spouse or parent’s title II when deeming applies until the FPL’s are implemented. After new FPL’s are implemented, the full amount of the title II is counted as income for each person in the ABD budget receiving title II benefits in an FPL case. Additional FPL Disregards Under Liberalized Policy Rules For cases that use liberalized income policy, as outlined in Chapter 200, Section 200.01.02, Liberalized Income Rules, there is an additional disregard of the annual cost of living increase for federal benefits other than title II. These benefits include VA, Railroad Retirement, Civil Service and any other federal benefit subject to a cost-of- living increase. The increase in federal benefits due to the cost-of-living increase is disregarded until the FPL’s are published and implemented, at which time the disregard is discontinued. Also, under liberalized income rules at 200.01.02, an additional disregard of income is permitted in any year in which the FPL fails to increase at an equal or greater rate than the federal cost of living increase during the same calendar year. The disregard of the COL increase in federal benefits will apply to increase(s) received by the eligible individual, couple and/or ineligible spouse. The COL increase will be disregarded as income until such time as the FPL increase is greater than the previous COL increase and the disregard is no longer needed.