SR 10-09 Dated 07/10

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases the annual July updates to the:

·   Financial Assistance to Needy Families (FANF) Standard of Need (SON); and

·   resource deduction figures for Children with Severe Disabilities (CSD). The CSD figures will remain unchanged from the 2009 figures.

The FANF SON represents an approximate monthly amount it would cost a family in NH for basic living necessities, including food, utilities, and rent. However, this figure is not used in the FANF eligibility or benefit determination process for most FANF applicants.

For 2010, the Division of Family Assistance (DFA) has determined that the amount of money a household of four needs for basic living expenses in NH, the SON for a household of 4, is $3,690 per month, whereas the 2010 maximum benefit that DFA provides for that same household living in unsubsidized housing is $738 per month. This translates into a 500% discrepancy between the figure DFA has determined it costs a family of four to live per month in NH, and the dollar amount DFA is providing for this family to meet those identified living expenses.

In the years 2000 – 2010, the SON has increased every year at an average of 4.87% per year, whereas the payment standard has increased only two times in that 10-year span. The payment standard has averaged a 1.10% increase per year for those two increases, but the discrepancy between the payment standard and the actual living costs as represented by the SON has averaged 454.34% for the full 10-year period.

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 2010 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, which is based upon 50% of the current federal poverty income guidelines (FPG), is mandated by State rule He-W 641.04(e).

POLICY

FANF Standard of Need Changes

The annual July update to the FANF Standard of Need (SON) affects:

·   FANF cases closed or denied due to lump sum income;

·   open FANF cash cases with a non-sanctioned deemer; and

·   open FANF-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 FANF ineligible due to receipt of lump sum income, and in less income being counted as available for those FANF cases with deemed income.

The maximum SON equals the Basic Maintenance Needs Allowance (BMNA) plus $342, the weighted average of the maximum shelter payment allowances. The 2010 BMNA and SON are noted below:

2010 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 0.1105. To obtain the SON, add $342 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 FANF 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

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 FPG. For 2010, Congress has maintained the FPGs at the 2009 levels. Due to the FPGs remaining the same as last year, there is no resultant change in the CSD figures.

CSD RESOURCE DEDUCTION FIGURES

NEW HEIGHTS SYSTEMS PROCEDURES AND IMPLEMENTATION

New HEIGHTS will be running the July Mass change a little differently this year due to the Personal Needs Allowance (PNA) change happening at the same time (see SR 10-21, dated 7/10 for more information). This year the approximately 200 cases impacted by the July changes will be run through the mass change at the same time as, and combined with, the approximately 7,200 cases that will be impacted by the PNA changes. All cases will be run on the following three evenings:

·   the first set of 2,500 cases will be run the evening of June 16, 2010;

·   the second set of 2,500 cases will be run the evening of June 17, 2010; and

·   the remaining cases will be run the evening of June 21, 2010.

July FANF SON Update

New HEIGHTS will update all reference tables with the new figures effective July 1, 2010, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

Clients Denied or Closed Prior to 7/1/10 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, 2010 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 evenings of June 16, 17, and 21, 2010. 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 FANF 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 runs 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 FANF 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.

POST MASS CHANGE REPORTS

The following reports will be available with any July Mass Change related information the morning following the three dates that the mass change will be run.

NMC540RA: AG’s Affected by MC

This report lists all cases that 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. The report 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 A  FANF Basic Maintenance Needs Allowance and Maximum Standard of Need

PART 601, Table D Children with Severe Disabilities Resource Deduction

IMPLEMENTATION

The SON revisions identified in this SR will be implemented July 1, 2010, and will apply to all cases processed on or after that date.

CLIENT NOTIFICATION

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 THE FINANCIAL ASSISTANCE TO NEEDY FAMILIES STANDARD OF NEED INCREASED.

A public hearing regarding the updated SON figures was held on April 30, 2010. In addition to the client notice referenced above, clients will be notified as needed about the updates in the SON at the next case action or upon request.

TRAINING

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

DISPOSITION

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

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 June 28, 2010. Additionally, this SR, and printed pages with posting instructions, will be distributed under separate cover to all internal hard copy holders of the Family Assistance Manual.

DFA/JT:s