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MRG UPDATED: AUGUST 1999 95 CATEGORICAL FACTORS MEDICAID EXTENSIONS/CONTINUATIONS DISABLED ADULT CHILD (DAC) BENEFICIARIES Description: Section 6 of Public Law 99-643 (42 U.S.C. 1383c(c)), provides that individuals who lose SSI eligibility because of the receipt of Social Security Disabled Adult Child (DAC) benefits, or because of an increase in the amount of these benefits are eligible for Medicaid if certain criteria are met. Policy: DAC Social Security benefits are received upon the disability, retirement or death of a parent. An individual is eligible for Medicaid as a DAC beneficiary if all of the following criteria are met: (1) the individual is at least 18 years old; (2) the individual became certified blind or certified disabled before reaching the age of 22; (3) the individual was receiving SSI benefits on the basis of blindness or disability; (4) the individual lost SSI benefits on or after July 1, 1987; and (5) the individual's loss of SSI benefits was the result of entitlement to a DAC benefit, or an increase in the benefit. When the criteria are met, and the individual would be eligible for SSI benefits if the amount of the initial entitlement or an increase in the DAC benefit were disregarded, the individual is eligible for Medicaid. References: ADMs 95 ADM-11 LCMs 92 LCM-41 (February 28, 1992) Interpretation: For an individual who lost SSI eligibility because of the initial entitlement to a DAC benefit, the entire amount of the DAC benefit is disregarded in the determination of countable income, including any subsequent increases in the benefit. When ineligibility for SSI was due to an increase in the DAC benefit, the amount of DAC benefits received in the month prior to the termination of SSI is the amount of DAC benefits that are counted in determining eligibility. Any subsequent increase(s) in DAC benefits is disregarded. If the