You want to know if the Department of Social Services (DSS) currently has any programs that allow applicants to deduct the cost of medications or other medical expenses from income to qualify for benefits (known as a “spend down” provision). You asked in response to a constituent who suggested such a process for the energy assistance program and real estate tax abatements (circuit breaker and renter’s rebate).

Two DSS programs allow people to deduct medical bills, including the cost of medications, to “spend down” their incomes to levels that qualify for the programs. These are the “medically needy” portion of Medicaid and medical assistance under the State-Administered General Assistance (SAGA) program. OLR Report 2004-R-0554 provides details on how the spend-down works.

Generally, for the energy assistance program, the only medical deductions are the Medicare Part B premiums withheld from people’s Social Security checks. But one part of the program, the safety net program, which applies after people have exhausted their regular assistance, involves a risk assessment that takes the family’s medical expenses into account. The real estate tax abatements (circuit breaker and renter’s rebate) for elderly and disabled people do not currently have any type of spend-down feature for medical bills; eligibility is based on gross income.

The following bills being considered by the legislature this session may be of interest to your constituent.

A Select Committee on Aging bill, HB 6651, would allow such deductions for prescription drug expenses, but not other medical bills, in the ConnPACE program, which helps low-income seniors pay for their prescription drug expenses. The bill is scheduled for a public hearing on March 3.

Proposed HB 5702, which had a subject matter public hearing in the Human Services Committee on February 22, would make more people eligible for energy assistance by increasing income limits, but it does not envision deduction of medical bills.

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