SR 05-15 Dated 07/05

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the annual July updates to the:

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

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

This SR also releases related policy clarifications and technical corrections in the FAM regarding:

·   deemed income in a three-generation household;

·   AmeriCorps and AmeriCorps-VISTA income; and

·   the definition of parent.

Additionally, this SR releases revised:

·   Form 756, Employment Verification; and

·   Form 773, Certification of Continued Absence.

BACKGROUND

The annual July update of the SON is mandated by the NH Legislature per RSA 167:7,II, to reflect changes in the cost of living. This year’s SON figures were updated using information obtained from the NH Housing Finance Authority and the IRS, in addition to applying the 2004 Consumer Price Index (CPI) increase 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 2005 Federal Poverty Income Guidelines published in the Federal Register of February 18, 2005.

POLICY

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 cash cases with a non-sanctioned deemer; and

·   open NHEP/FAP-related medical assistance cases in deductible status with a non-sanctioned deemer.

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 $310, the weighted average of the maximum shelter payment allowances. The 2005 BMNA and SON are noted below:

2005 BMNA and SON

*For household sizes over 12, calculate the BMNA by adding $67 for each additional person to the basic maintenance payment allowance (BMPA) and divide the result by 0.1256. To obtain the SON, add $310 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. 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. HEIGHTS will automatically recalculate benefit amounts for open cases with deemed income during the Mass Change. No District Office action is required.

Clients whose cases were closed or denied due to excess deemed income may reapply or request to have their eligibility redetermined due to the increase in the SON. If requested, the District Office must recalculate the client’s eligibility.

Children with Severe Disabilities (CSD) Resource Deduction Increase

CSD resource eligibility for medically-needy 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

July NHEP/FAP SON and CSD Resource Deduction Update

New HEIGHTS will update all reference tables with the new figures effective July 1, 2005, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

Clients Denied or Closed Prior to 7/1/05 Due to Deemed Income or Receipt of Lump Sum

No District Office action is necessary unless a client requests to have their eligibility redetermined or their period of ineligibility recalculated. If a client requests this recalculation, the current SON released by this SR and effective July 1, 2005 will be automatically applied during the recalculation. If the client’s eligibility for assistance or length of ineligibility changes during the recalculation, a new NOD will be generated.

Open Cases With Deemed Income

New HEIGHTS will run an initial query to identify all open/on-going cash cases with a non-sanctioned deemer and all deductible cases with a non-sanctioned deemer 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 30, 2005. 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, medical assistance only cases with a non-sanctioned deemer, and cases with a non-sanctioned deemer 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 30th will appear on the MC Exception Report (NMC550RA) with the Reason for Exception listed as "No BI Payment 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, explain the process required to establish benefit issuance. $10 minimum grant cases confirmed after the mass change will receive a standard opening message from New HEIGHTS. 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.

Procedures for CSD Cases

New HEIGHTS will update all reference tables with the new CSD Resource Deduction figures effective July 1, 2005, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

RELATED POLICY CLARIFICATIONS AND TECHNICAL CORRECTIONS

Three-Generation Household Deeming

The word "not" was inadvertently left out of the three-generation household deeming section in FAM 511, DEEMED INCOME. In a three-generation household, the income of grandparents, if they are not receiving assistance, is deemed available to their TANF children who are minor parents. This technical correction has been made in FAM PART 511, COMMON TYPES OF INCOME: DEEMED INCOME.

Treatment of AmeriCorps and AmeriCorps-Volunteers in Service to America (VISTA) Payments

AmeriCorps consists of hundreds of programs, one of which is AmeriCorps-VISTA. All AmeriCorps-VISTA payments are considered excluded income, except when Corporation for National and Community Service (formerly known as ACTION) deems that the individual’s compensation is at least equal to the federal minimum wage, or the state minimum wage if greater.

Payments under any other AmeriCorps program are excluded if the payments are for child care, educational awards, or health care benefits. The monthly living allowance for individuals receiving compensation from an AmerCorps program, other than AmeriCorps-VISTA, are treated as earned income. FAM PART 511, COMMON TYPES OF INCOME: AMERICORPS, and FAM PART 511, COMMON TYPES OF INCOME: VOLUNTEERS IN SERVICE TO AMERICA (VISTA), have been updated accordingly.

Definition of Parent

The definition of parent in the FAM Glossary has been revised to more closely align with department rules.

FORMS REVISIONS

Form 756, Employment Verification

Form 756, Employment Verification, has been revised to include a column for the Earned Income Tax Credit (EITC). The EITC is not counted as income.

The use of the form remains unchanged so the instructions have not been re-released. The current version of the form must be exhausted before the revised version is printed.

Form 773, Certification of Continued Absence

Form 773, Certification of Continued Absence, has been revised to include a statement that reminds TANF applicants that if 30 days of continued parental absence have not passed at the time of application, the individual must complete another Form 773 once the 30 days have passed in order for benefits to be released.

Per current policy, individuals must provide verification of deprivation due to continued absence by completing Form 773 at initial application, every redetermination, and whenever continued absence is questionable.

The use of the form remains unchanged so the instructions have not been re-released. The current version of the form must be exhausted before the revised order is printed.

Since the supply of both forms must be depleted before the new version is printed, no certification of destruction is included with this SR.

CLIENT NOTICE

Assistance groups experiencing a change in eligibility due to the mass change will receive the following text in the "Explanation" section of the Notice of Decision (NOD):

ON JULY 1, 2005, THE NHEP/FAP STANDARD OF NEED, THE RESOURCE DEDUCTION FOR FAMILIES WITH A SEVERELY DISABLED CHILD, AND THE CHILD CARE INCOME LIMITS INCREASED.

NOTE: SR 05-27 released changes to the child care income limits.

POST MASS CHANGE REPORTS

The following reports will be available with any July Mass Change related information beginning July 1, 2005.

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 511   COMMON TYPES OF INCOME: AMERICORPS

PART 511   COMMON TYPES OF INCOME: DEEMED INCOME

PART 511   COMMON TYPES OF INCOME: VOLUNTEERS IN SERVICE TO AMERICA (VISTA)

PART 601, Table A  TANF Basic Maintenance Needs Allowance and Maximum Standard of Need

PART 601, Table D  Children with Severe Disabilities Resource Deduction

Glossary   P-Words

IMPLEMENTATION

The changes identified in this SR will be implemented July 1, 2005, and will apply to any new cases processed on or after that date.

Continue using Form 756, Employment Verification, and Form 773, Certification of Continued Absence, until current supplies are exhausted. The new versions of both forms will be printed when the current supply is depleted.

CLIENT NOTIFICATION

A public hearing regarding the updated SON figures was held on May 13, 2005.

Besides the regular client notice referenced above, clients will be notified about the updates in the SON and CSD Resource Deduction, as needed, 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.nh.gov/DHHS/DFA/LIBRARY, effective July 1, 2005.

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/DMS:s