DATE: March 18, 2005
SUBJECT: Elimination of Clothing from Definition of Income
DISTRIBUTION: County Directors of Social Services
Medicaid Eligibility Supervisors
Medicaid Eligibility Staff
The Social Security Administration has revised regulations concerning how an individual’s income and resources are determined under the Supplemental Security Income (SSI) program. Effective March 9, 2005, SSI eliminated clothing from the definition of income and from the definition of in-kind support and maintenance. This change also affects adult Medicaid eligibility determinations.
II. MEDICAID CHANGES
When determining countable income for an Adult Medicaid applicant or recipient, do not count the contribution of clothing as income. The ABD Medicaid Manual will be updated to reflect this policy change at the next revision. Medicaid policy sections affected by this change include:
Section F., Determine Countable Income to the A/R, contains two references to clothing as countable income. Eliminate clothing from the listings in F.2.b. and in the second sentence in the NOTE following this section.
Sections AA. 2. and BB. include contributions of clothing as countable income. Eliminate clothing contributions when determining in-kind income.
Section B., Non-countable Unearned Income, 11. contains a reference to bills paid by a third party for an item other than food, shelter or clothing. Eliminate the reference to clothing here.
DMA Administrative Letter No. 08-05
III. EFFECTIVE DATE AND IMPLEMENTATION
This policy is effective April 1, 2005. Apply this change to redeterminations started and applications pending or taken on or after April 1, 2005.
If you have any questions regarding this policy please contact your Medicaid Program Representative.
(This material was researched and written by Susan Ryan, Policy Consultant, Medicaid Eligibility Unit)
For questions or clarification on any of the policy contained in these manuals, please contact your local county office.