Disabled Benefit from Food Stamp amd Medicare Changes

May 1, 2008

Author: Catherine M. Callery (Kate)| Louise M. Tarantino| Cathy Roberts

Thanks to recent administrative changes made by the NYS Office of Temporary and Disability Assistance (OTDA) and the Department of Health (DOH), more disabled and elderly individuals should be able to access the Food Stamp Program and the Medicare Savings Program here in New York.  Here’s a quick summary of the major changes:

Food Stamps:  (Virtual) Elimination of resource test

For most households in New York, as of January 1, 2008, there is no longer a resource test for food stamps.  OTDA implemented a federal food stamp option called “expanded categorical eligibility,” which resulted in the virtual elimination of the resource test.

Food Stamp Expanded Categorical Eligibility Chart 

Resources don’t count if you meet these income guidelines.  If, however, someone in the household has been disqualified from food stamps, the other members of the household are subject to the regular food stamp resource rules ($3000 maximum for elderly/disabled; $2000 for everyone else).

If your clients are receiving temporary assistance while their SSI cases are pending, they are probably already receiving food stamps.  However, DAP advocates may want to ask clients who are not on Temporary Assistance (TA) whether they are receiving food stamps, and to encourage those who are not to apply.  Although food stamps are not intended to meet a household’s entire food needs, they can really help put food on the table, and also act as a vital income supplement. 

Also, after you win your SSI case (congratulations!), remember that for food stamp purposes, the client can retain his/her retroactive Social Security/SSI award indefinitely, since lump sums are counted as resources for food stamp purposes and resources no longer count.  Of course, they will be counted as resources for purposes of SSI eligibility nine months after receipt.

For more details about the new food stamp categorical eligibility policy, see the OTDA policy directives: 07 ADM 09 and 08 INF-03.  Both are available on the Western New York Law Center’s Online Resource Center. http://onlineresources.wnylc.net.

Medicare Savings Program – elimination of asset test AND interview requirements

This change will benefit clients who are approved for SSD and entitled to Medicare. 

The Medicare Savings Program (MSP) is the generic “catch-all” term for the various Medicare Buy-In Programs – the programs that pick up the cost of Medicare Part B premiums for low income beneficiaries and automatically qualifies them for the Part D (prescription drug) low income subsidy.  Medicare beneficiaries with gross incomes at or below 135% of the federal poverty level can qualify for MSP.  Clients apply for MSP at the local Medicaid office.

There have been two major changes to the MSP in New York State:

1) In order to make it easier for low income beneficiaries to access MSP, DOH has completely eliminated the interview requirement as of January 1, 2008.  This means that disabled and elderly Medicare beneficiaries can apply for MSP without having to travel to the local Medicaid office!  (Prior to January 1, MSP applicants had to appear at in-person interview or appoint an authorized representative to attend the interview in their place.)  NYS DOH GIS message 07 MA 027 announces the new “no interview required” policy.  You can get the GIS message and its attachments, including a copy of the MSP application form at http://onlineresources.wnylc.net/pb/docs/07ma027.pdf

2) The asset test has been eliminated from all three MSPs (QMB, SLMB and QI-1) as of April 1, 2008, in accordance with statutory changes made to MSP as part of the 2008 NY state budget process.  This means that assets will no longer be considered in determining MSP eligibility in New York State!  DOH is in the process of submitting a state plan amendment to the Centers for Medicare and Medicaid Services (CMS). We anticipate that a GIS message will be released by early summer confirming that the asset test has been eliminated for MSP eligibility purposes as of April 1, 2008.  Beneficiaries eligible under these new rules can file their applications now, even before the GIS has been released.

A description of the various MSPs and their income guidelines for 2008 is available at the DOH website, http://www.health.state.ny.us/health_care/medicaid/program/update/savingsprogram/medicaresavingsprogram.htm.

For more information about the information in this article, please contact Cathy Roberts at 518 462-6831 x 23 or croberts@empirejustice.org.  Thanks to Cathy for taking the time to help out her former DAP colleagues by providing this valuable information.