SR 11-21 Dated 07/11

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 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 2011, 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 $3,771 per month, whereas the 2011 maximum benefit that DFA provides for that same household living in unsubsidized housing is $738 per month. This translates into a 411% 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 2001 - 2011, the SON has increased every year at an average of 4.63% per year, whereas the payment standard has increased only two times in that 11-year span. The payment standard has averaged a 1.0% 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 369.04% for the last 11-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 2011 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 2011 BMNA and SON are noted below:

2011 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 0.1079. 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. The 2011 CSD Resource Deductions are noted below.

CSD RESOURCE DEDUCTION FIGURES

NEW HEIGHTS SYSTEMS PROCEDURES AND IMPLEMENTATION

July FANF SON and CSD Resource Deduction Update

New HEIGHTS will update all reference tables with the new figures effective July 1, 2011, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

Clients Denied or Closed Prior to 7/1/11 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, 2011 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 13, 2011. 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 run of June 13th 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.

Procedures for CSD Cases

New HEIGHTS will update all reference tables with the new CSD Resource Deduction figures effective July 1, 2011, and will use the new amounts for any cases computed or recomputed beginning on or after that date.

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, 2011, 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 AND THE RESOURCE DEDUCTION FOR FAMILIES WITH A SEVERELY DISABLED CHILD INCREASED. YOUR BENEFITS, AS SHOWN IN THE OLD AND NEW BUDGETS BELOW, MAY HAVE BEEN ADJUSTED TO REFLECT THIS OR OTHER CHANGES THAT OCCURRED IN YOUR CASE.

Notification of the change in the SON figures was published in the NH Rulemaking Register, Office of Legislative Services, on April 22, 2011. A public hearing on the amended Administrative Rules was held on May 13, 2011.

In addition to the client notice referenced above, clients will be notified as needed about the updates in the SON and CSD Resource Deduction at the next case action or upon request.

POST MASS CHANGE REPORTS

The following reports will be available with any July Mass Change related information beginning June 14, 2011.

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.

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 Family Assistance 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 www.dhhs.nh.gov/DFA/publications.htm, effective August 1, 2011. 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/KD:s