SR 02-14 Dated 07/02

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases:

·   a $25 increase in the NHEP/FAP maximum shelter allowance for individuals residing in unsubsidized housing; and

·   the annual July updates to the:

-   NHEP/FAP Standard of Need (SON); and

-   resource deduction figures for Children with Severe Disabilities (CSD).

BACKGROUND

RSA 167:7,II gives the Department the authority to set the NHEP/FAP maximum shelter allowance and incorporate changes in the cost of living. Similarly, the annual July update of the SON is mandated by the NH Legislature per RSA 167:7,II. This year’s SON figures were updated using information obtained from the NH Housing Finance Authority and the IRS in addition to applying the 2002 Consumer Price Index (CPI) to the 2001 DFA Market Basket Survey and Josiah Bartlett Study results.

The annual July update of the CSD resource deduction figures is mandated by State rules He-W 641.04(e). The increase reflects the 2002 Federal Poverty Income Guidelines published in the Federal Register of February 14, 2002.

POLICY

Changes to the NHEP/FAP Maximum Shelter Allowance and Payment Standard

Effective July 1, 2002, the NHEP/FAP maximum shelter allowance will increase $25, from $293 to $318 per month, for individuals residing in unsubsidized housing. As a result, NHEP/FAP assistance groups (AG) living in unsubsidized housing may see up to a $25 increase in their monthly NHEP/FAP grant:

·   An AG currently claiming monthly unsubsidized shelter costs of at least $293 but less than or equal to $318 will receive an increase in their NHEP/FAP grant equal to the amount of their shelter costs in excess of $293, up to the maximum of $25 per month.

·   Individuals claiming unsubsidized shelter costs in excess of $318 will see the full $25 increase in their grant.

The shelter allowance for individuals living in subsidized housing remains unchanged at $293 per month. Individuals claiming monthly subsidized shelter costs will experience no change to their monthly grant, as long as all other case factors remain unchanged.

Examples

A. Norma Sharding and her two children currently live in unsubsidized housing and claim shelter costs of $300 per month. They receive the maximum NHEP/FAP grant for 3. Effective July 1, 2002, if there are no other changes to the case, their monthly grant will increase $7, the difference between the current maximum shelter allowance of $293 and their actual shelter expenses of $300.

B. Christina Poshian and her child live in unsubsidized housing and claim shelter costs of $400 per month. They receive the maximum grant for 2. Effective July 1, 2002, if there are no other changes to the case, their monthly grant will increase the full $25 per month, since their actual shelter costs remain in excess of the new maximum shelter allowance of $318 per month.

C. Stacy Finston and his five children live in section 8 housing and currently claim shelter costs of $300. The Finston family receives the maximum grant for 6. Effective July 1, 2002, if there are no other changes to the case, their monthly grant will remain exactly the same; the maximum shelter allowance for subsidized housing remains unchanged at $293.

The new maximum Payment Standard for individuals living in unsubsidized housing, calculated by adding the increased maximum shelter allowance of $318 to the existing Basic Maintenance Payment Allowance (BMPA) amounts, are noted below:

In addition, the Payment Standard is also the NHEP/FAP categorically needy income limit. The categorically needy income limit will continue to remain equal to the Payment Standard, but the income limit will now be equal to the payment standard associated with the client’s shelter type. As such, if an NHEP/FAP medically needy AG living in unsubsidized shelter has income that now falls below the new Payment Standard for unsubsidized housing, and the AG’s resources do not exceed the limit for categorically needy MA, the AG will now become categorically needy and be income eligible for NHEP/FAP cash assistance, subject to the $10 minimum grant.

NHEP/FAP Standard of Need Changes

The annual July update to the NHEP/FAP Standard of Need (SON) affects:

·   NHEP/FAP cases closed or denied due to lump sum income;

·   open NHEP/FAP cases with deemed income; and

·   open NHEP/FAP or NHEP/FAP-related Medicaid cases with deemed income.

The SON is used to determine the period of ineligibility for cases receiving lump sum income and eligibility and benefit amount for cases with deemed income. The increase in the SON may result in shorter periods of ineligibility for those cases that are currently NHEP/FAP ineligible due to receipt of lump sum income, and in less income being counted as available for those NHEP/FAP cases with deemed income.

The maximum SON equals the Basic Maintenance Needs Allowance (BMNA) plus the maximum monthly shelter payment allowance. Due to the $25 increase in the shelter allowance for individuals residing in unsubsidized housing, the BMNA and SON figures used to determine an individual’s period of ineligibility due to receipt of lump sum income or eligibility and benefit amount for cases with deemed income will now be connected to the individual’s shelter situation (e.g., subsidized or unsubsidized) as follows:

BMNA and SON for Individuals Residing in Subsidized Shelter

* For household sizes over 12 living in subsidized housing, calculate the BMNA by adding $67 for each additional person to the basic maintenance payment allowance (BMPA) and divide the result by 0.1436. To obtain the SON, add the maximum subsidized shelter allowance of $293 to the BMNA figure.

BMNA and SON for Individuals Residing in Unsubsidized Shelter

* For household sizes over 12 living in unsubsidized shelter, calculate the BMNA by adding $67 for each additional person to the basic maintenance payment allowance (BMPA) and divide the result by 0.1458. To obtain the SON, add the maximum unsubsidized shelter allowance of $318 to the BMNA figure.

Lump Sum Calculations

Individuals who receive lump sum payments are ineligible for assistance for the number of months resulting from dividing the lump sum amount (plus any other monthly income) by the SON. Clients whose cases were closed or denied due to receipt of lump sum income may reapply or request a recalculation due to the increase in the SON. If requested, the District Office must recalculate the client’s period of ineligibility, applying the SON figures associated with their shelter type (subsidized or unsubsidized). A new Notice of Decision (NOD) will be generated if the recalculation results in a different period of ineligibility.

Deemed Income Cases

The SON is used for NHEP/FAP deeming from parents, including ineligible alien parents, alien sponsors, and three generation deeming. Due to the increase in the SON, less deemed income is counted as available to the client.

Cases that were closed or denied due to excess deemed income may wish to reapply and have their eligibility recalculated due to the increase in the SON. No action is required by the District Office unless the client contacts the office and requests a recalculation of their eligibility. If requested, the District Office must recalculate the client’s eligibility applying the figures associated with their shelter type (subsidized or unsubsidized).

HEIGHTS will automatically recalculate benefit amounts for open cases with deemed income during the Mass Change. No District Office action is required.

Children with Severe Disabilities (CSD) Resource Deduction Increase

The resources of CSD parents are counted as available in determining categorically needy and medically needy CSD medical assistance eligibility and are treated in accordance with TANF-MA policy on resources (see FAM, Chapter 400, RESOURCES).

CSD resource eligibility for medical assistance is determined by reducing the parents’ total resources by the CSD resource deduction for the appropriate household size and combining the balance with the child’s resources. The CSD resource deduction is based upon 50% of the current federal poverty income guidelines.

CSD RESOURCE DEDUCTION FIGURES

SYSTEMS PROCEDURES AND IMPLEMENTATION

New HEIGHTS will update all reference tables with the new figures effective July 1, 2002, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

Cases that were closed or denied prior to July 1, 2002 due to deemed income or receipt of a lump sum will not be recalculated.

Procedures for the New Payment Standard

Effective July 1, 2002, New HEIGHTS will apply the new Payment Standard for individuals residing in unsubsidized housing, to all pertinent calculations, such as:

·   NHEP/FAP financial and medical assistance eligibility determinations;

·   NHEP/FAP grant amount computations; and

·   sanctions for noncooperation with child support or NHEP work requirements.

Procedures for $10 Grant Cases

Certain cases residing in unsubsidized shelter and currently eligible for NHEP/FAP cash assistance but not actually receiving the grant because the amount is under $10 per month, may now qualify to receive a grant due to the increase in the Payment Standard. District Offices are not required to refer these cases to the NHEP team as New HEIGHTS will have already referred mandatory NHEP participants to the NHEP Team.

·   For cases in which New HEIGHTS has sufficient information to provide the Benefit Issuance type, New HEIGHTS will generate a Notice of Decision (NOD) informing the client of the change in the benefit issuance status.

·   Cases that do not have sufficient Benefit Issuance information at the time of the Mass Change will appear on the MC Exception Report (NMC550RA) with the "Reason for Exception" listed as "Cash/FS need benefit issuance information." District Offices must rerun eligibility and supply the missing Benefit Issuance information when that screen appears in the driver flow.

NOTE: These cases should be contacted prior to confirmation to be informed of the availability of cash assistance, including an explanation of appropriate NHEP/FAP cash program policies (e.g., work program requirements and the 60-month time limit on receipt of cash assistance). If the client agrees to receipt of cash assistance, identify whether the client wishes EBT or EFT as the cash benefit issuance type and explain the processes required to establish either issuance type. When the benefit issuance type has been chosen and entered, confirm the case. $10 minimum grant cases confirmed after the mass change will receive a standard opening message from New HEIGHTS.

Cases Currently Under Sanction for Non-Cooperation with Child Support or NHEP Work Requirements

The revised NHEP/FAP Payment Standard for individuals living in unsubsidized housing will be applied to sanction and recoupment cases to determine the preliminary grant amount and then the recoupment/sanction amount will be applied.

Procedures for NHEP/FAP Cash with Associated Food Stamps

AGs living in unsubsidized housing who receive an increase in their NHEP/FAP cash assistance grant may experience a decrease in the food stamp allotment for the case, beginning with the July 2002 food stamp benefit issuance. These cases will receive the usual Notice of Decision associated with a decrease in food stamps due to increased unearned income. In addition, because this is a Mass Change, no Advance Notice Period (ANP) is required. New HEIGHTS will automatically suppress the ANP for these cases.

Procedures for Lump Sum Cases

If a client requests to have their period of ineligibility recalculated due to the SON increase, the District Office must recalculate the case using the figure associated with the client’s shelter type (subsidized or unsubsidized). The current SON increase released by this SR and effective July 1, 2002 will be automatically applied to all reapplications in accordance with shelter type. If the client’s length of ineligibility changes during the recalculation, a new NOD will be generated.

Procedures for Deemed Income Cases

New HEIGHTS will run an initial query to identify cases with deemed income whose grant amounts or spenddowns will change during the mass change. The cases identified will be recomputed during the daily production run the evening of June 29, 2002. Cases with deemed income whose grant amounts or spenddowns change will receive the appropriate message reflecting the new benefit level.

Because less deemed income will be counted as available, a small number of medical assistance only cases with deemed income, and deemed income cases currently eligible for NHEP/FAP cash assistance but not actually receiving the grant because the amount is under $10 per month, may now become eligible for a cash grant for the first time.

The latter cases that do not have sufficient Benefit Issuance information during the daily production run of June 29, will appear on the MC Exception Report (NMC550RA) with the Reason for Exception listed as "Cash/FS need benefit issuance information." District Offices must rerun eligibility and supply the missing Benefit Issuance information when that screen appears in the driver flow.

NOTE: District Offices are not required to refer these cases to the NHEP team, as HEIGHTS will have already referred mandatory NHEP participants to the NHEP team.

Procedures for CSD Cases

New HEIGHTS will update all reference tables with the new CSD Resource Deduction figures effective July 1, 2002, and will use the new amounts for any cases computed or recomputed beginning on or after that date. New HEIGHTS will run an initial query to identify cases that will experience changes in their eligibility status as a result of the SON and CSD increase. The identified CSD cases will be recomputed during the daily production run of June 29, 2002. Cases that change medical assistance categories due to the increase in the resource deduction will receive the appropriate message reflecting the change.

POST MASS CHANGE REPORTS

The two reports described below are produced on a daily basis. These reports will be available on CADocView shortly after July 1 2002.

NMC540RA: AG’s Affected by MC

This report lists all cases upon which the Mass Change ran successfully through confirmation. It contains the following information: D.O., Worker Name, Client Name, and Case Number.

NMC550RA: MC Exception Report

This report lists cases that were selected for computation during the Mass Change, but were not confirmed due to some discrepancy in data. These cases require further District Office action. It contains the following information: D.O., Worker Name, Client Name, Case Number, Reason for Exception, and Mass Change Type.

POLICY MANUAL REVISIONS

Revised Family Assistance Manual Topics

PART 601, Table B Basic Maintenance Payment Allowance and Maximum Payment Standard

PART 601, Table D Children with Severe Disabilities Resource Deduction

IMPLEMENTATION

The changes identified in this SR will be implemented July 1, 2002, and will apply to any new cases processed on or after that date. Tables and Standards sections for benefits prior to July 1, 2002 should be retained for reference for retroactive benefits until they are no longer needed.

CLIENT NOTIFICATION

Besides the regular client notices referenced above, clients will be notified about the increase in the SON, CSD Resource Deduction, and shelter allowance for unsubsidized housing at the next case action or at client request.

TRAINING

No training is planned or needed due to the procedural nature of this SR.

DISPOSITION

This SR may be deleted or destroyed once its contents have been noted and the revised manual topics released by this SR have been posted to the On-Line Manual.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.state.nh.us/PMIndex.htm, effective July 1, 2002.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Family Assistance Manual.

DFA/JBV:s