March 13, 2006 |
2006-R-0220 | |
STATE SUPPLEMENT—IMPLEMENTATION OF INCREASE IN UNEARNED INCOME DISREGARD | ||
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By: Robin K. Cohen, Principal Analyst | ||
You asked (1) how State Supplement recipients residing in residential care homes (RCHs) were notified of the increase in the unearned income disregard, enacted in PA 05-243 and (2) whether recipients are actually receiving the increase. Apparently, representatives of the recipients told you they were not receiving the increase.
PA 05-243 requires the Department of Social Services (DSS), beginning January 1, 2006, to increase the amount of unearned income it disregards when determining eligibility and benefits for the State Supplement Program. The increase equals the amount of the annual cost of living adjustment (COLA), if any, provided to federal Supplemental Security Income (SSI) recipients.
The SSI increase for 2006 was 4. 1% or $ 24 per month for a single person. Thus, beginning January 1, 2006, DSS had to increase the unearned income disregard for all three categories of State Supplement recipients:
SSP Category |
Old Disregard |
New Disregard (as of 1/1/06) |
Sharing housing with relative |
$ 250. 90 |
$ 274. 90 |
Community, living alone |
183. 00 |
207. 00 |
Licensed boarding arrangement (includes residential care homes) |
90. 70 |
114. 70 |
According to Kevin Loveland of DSS' Adult Support Unit, DSS sent out benefit change notices to all State Supplement clients including those residing in licensed boarding homes (which includes RCHs). But these notices did not show the amount of the new unearned income disregard.
DSS issues a monthly State Supplement check, for each RCH resident, which is the difference between the monthly rate DSS sets for the RCH plus the individual's personal needs allowance (PNA, $ 28. 90 for all recipients) and his applied income. The client is expected to turn over everything to the RCH except for the PNA and the unearned income disregard. Although the check should be going directly to the client, in some instances, the homes may be intercepting them.
Some of the RCHs and clients may be unaware of the increase in the disregard, which has led to the RCHs keeping more of the check than they should. Loveland stated that DSS is aware of this potential oversight and is preparing to send an additional notice to all licensed boarding home operators, alerting them of the new law. The notice will include a directive that clients be reimbursed for any months for which they did not receive the additional $ 24.
Loveland notes that DSS post-pays boarding homes, so the increase in benefits showed up in the checks clients or homes received starting in February (covering January). So at most, homes that neglected to pass on the increase would have to reimburse clients for two months ($ 48).
RC: ts