IM-151 LIFE INSURANCE – MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) MANUAL REVISION

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  LIFE INSURANCE – MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) MANUAL REVISION

MANUAL REVISION #109

1030.020.05

1030.020.10.20

 

DISCUSSION:

The revised MHABD manual section 1030.020.05 Life Insurance discusses updated policy regarding how to apply the cash surrender value (CSV) of a life insurance policy.

If a participant transfers ownership of his/her life insurance policy, staff must determine if an improper transfer of assets has occurred.  Information regarding the transfer of assets policy can be found in MHABD Manual Section 1040.000.00 Transfers of Property.

MHABD manual section 1030.020.10.20 discusses changes in policy regarding Assigning Life Insurance to Fund Pre-Need Burial Contracts.

Ensure that separate entries are made in the electronic case record for the life insurance policy and the pre-need burial contract. 

Please note that funds remaining from the life insurance policy that funded the irrevocable pre-need burial contract, that were not spent on the participant’s burial will be claimed by Estate Recovery, up to the amount expended for public assistance for the individual.  It is the funeral home’s responsibility to notify the Cost Recovery Unit that there are remaining funds.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

RM/rr

 

IM-150 RESOURCES FALL BELOW LIMIT IN MONTH OF APPLICATION- MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) PROGRAM

FROM:  REGINALD McELHANNON , INTERIM DIRECTOR

SUBJECT:  RESOURCES FALL BELOW LIMIT IN MONTH OF APPLICATION- MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) PROGRAM           

MANUAL REVISION #108

1030.000.05

 

DISCUSSION:

The manual section 1030.000.05 Resources Fall Below Limit in Month of Application has been revised.

The policy has not changed.  The manual was revised for clarification only. 

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

PL/rr

IM-149 FOOD STAMP FFY 2020 OCTOBER MASS ADJUSTMENT

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  FOOD STAMP FFY 2020 OCTOBER MASS ADJUSTMENT

MANUAL REVISIONS:#107                    

1105.015.04.05

1115.035.05

1115.035.25

1115.035.25.15

1115.099.00

1135.010.07.05

0815.030.10.10.10

Appendix B

Appendix J

 

DISCUSSION:

The October Food Stamp Mass Adjustment  occurred over the weekend of September 7, 2019.  All policies and updated information will go into effect for all applicants and customers as of October 1, 2019. 

This memorandum addresses the following issues related to the mass adjustment:

  • Updates to the Maximums and Deductions
  • Update Process
  • Decreased Benefits or Case Closings
  • Conflict of Actions
  • Cases Not Adjusted
  • Notices
  • Fair Hearing Requests
  • Manual Revisions

Updates to the Maximums, Utility Standards and Deductions:

The Following updates were made during the mass adjustment:

Allotment Types

Allotment Amounts

  Standard Deductions

  1-3 Household Members     $167

  4 Household Members        $178

  5 Household Members        $209

  6+ Household Members      $240

  Utility Standards

  SUA                                     $394

  NHCS                                  $311

  LUA                                     $128

  Telephone                           $  63

  Excess Shelter Deductions

  $569

  Standard Medical Deduction

  $170

  Gross (130%) Maximum

  Increased

  Net (100%) Maximum

  Increased

  FPL (165%) Maximum*

  Increased

*These maximums are used to determine if an EU whose members are elderly, live with others and are unable to purchase and prepare food due to a disability, are eligible as a separate EU for Food Stamp Benefits. The Food Stamp Manual Section 1105.015.04.05 has been updated with the new chart.

 

Update Process

The Food Stamp Budget Summary (FM4A) screen and the Worker Initiated Budget Calculation Area – WIBCA (FMXN) are updated with the new amounts.

After the eligibility determination is run during the mass adjustment, the following actions on active Food Stamp cases may be displayed in FAMIS, depending on the action taken during the mass adjustment:

 

Action

EU Log (FM40) Displays

Date

Benefit Month

Increase

INCR

09/07/2019

102019

No Change

NOCH

09/07/2019

102019

Reduction

REDU

09/07/2019

102019

The reason field on the Action Authorization (FM3H) screen displays TUA – Table Update Adjustment (system) for the mass adjustment.

To inquire why an action is taken, on EU Action Log (FM40), select the action, and press F17=INQAUTH. The Action Authorization (FM3H) screen appears. Press F19=REASON. The reason code and the code description appear. After payroll closing, the Payment History (FM5F) screen displays the appropriate allotment for each EU.

 

Decrease Benefits or Case Closings

EUs with cases that have an allotment decrease or their case is closing will receive an FA-150 Action Notice.

 

Conflict of Actions

FAMIS will adjust active Food Stamp cases during the mass adjustment, even if the case has a pending adverse action. A conflict of action is created, if there is a pending adverse action when the mass adjustment is completed. The Eligibility Specialist voids the adverse action and process the mass adjustment adverse action following these steps:

  1. Void the first (pending) adverse action on the Action Resolution (FM50 or ACTRES) screen.
  2. Complete the eligibility determination on the Eligibility Determination Resolution screen (FM3Y or EDRES).
  3. Authorize the new action, even if the action is a benefit reduction or closing.

Refer to FAMIS user guide Changing  An Adverse Action Status for instructions.

 

Cases Not Adjusted

Pending applications and cases with pending changes cannot be adjusted during the mass adjustment and require the Eligibility Specialist to take action. When the Eligibility Specialist completes the appropriate action, the case will be automatically adjusted.

The following are examples of cases not adjusted:

  • Expedited EUs that are active with postponed verification (APV status).
  • Any EU with an incomplete eligibility determination, such as when there is insufficient data (ISD).
  • Any EU in the controlled flow.
  • If an unacceptable or blank verification code is entered for a program element.
  • Any EU with pending verification.

 

Notices

All EUs with an allotment increase will be sent an FA-150 Action Notice.  These notices are dated September 19, 2019. The notice informs the EU of the following:

  • The Standard Deduction and Excess Shelter Maximums have changed.
  • The Utility Standard Allowances have changed.
  • The household Food Stamp allotment for October has changed.

Staff may view the FA-150 on the Document Queue (FMVM) screen in FAMIS.

 

Fair Hearing Request

If the EU requests a fair hearing for the Food Stamp Program, the Agency needs to:

  • Follow your current hearings office process in your local office.

 

Manual Revisions

The Food Stamp Manual Revisions are as follows:

  • Section 015.04.05 – Update 165% FPL
  • Section 035.05 – Update the Standard Deduction
  • Section 035.25 – Update the Excess Shelter Maximum
  • Section 035.25.15 – Update the Utility Standards
  • Section 099.00 – Update Maximum Allowable Monthly Income Limits and Allotment Table
  • Section 099.00 – Update Appendix A Simplified Reporting Requirements
  • Section 010.07.05 – Update standard for pre-strike calculations

The following information has been revised on the intranet:

  • Food Stamp Program Changes Flyer
  • Standards History Chart
  • Manually Calculating a Food Stamp Budget
  • Basis of Issuance Tables

 

MO HealthNet for the Aged, Blind, and Disabled  (MHABD)

The SUA or the telephone standard is used in calculating the community spouse (CS) allotment for vendor cases.  This calculation is completed by FAMIS based on the shelter expenses and utility standards entered by the Eligibility Specialist.  The MHABD manual has been updated to reflect the new standards in Appendix B, Appendix J and 0815.030.10.10.10 Determining the Allotment to the Community Spouse.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

RM/ja

IM-148 MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD)  REVISIONS SPEND DOWN POLICY MANUAL REVISIONS

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD)  REVISIONS SPEND DOWN POLICY MANUAL REVISIONS

MANUAL REVISION #106

0810.010.15.05

0810.010.15.01

 

DISCUSSION:

The purpose of this memorandum is to inform staff that the title of manual section 0810.010.15.05 has been changed to Allowable Medical Expenses for Spend Down.  Revisions have been made to that section as well as 0810.010.15.01 Documentation of Incurred Medical Expenses. 

Content of these sections has been revised to:

  • Add legal references;
  • Expand the definition of acceptable documentation for spend down;
  • Add definition to date of service for spend down submissions;
  • Incorporate additional allowable expenses for spend down and elaborate on existing allowable expenses.

Other revisions include additional examples and clarification of existing policy.  

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.
  • Refer to this policy as needed.

 

RM/ers

IM-147 ALLOWABLE DEDUCTIONS – ALIMONY DEDUCTION FOR THE MAGI PROGRAM

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  ALLOWABLE DEDUCTIONS – ALIMONY DEDUCTION FOR THE MAGI PROGRAM

MANUAL REVISION #105

1805.030.20.15

 

DISCUSSION:

The purpose of this memorandum is to address an additional change to MAGI Allowable Deductions for Alimony payments.  The 2018 Tax Reform introduced changes to when alimony payments can be used as a deduction.

  • If the legal separation or divorce decree is finalized before January 01, 2019 then alimony payments are an allowable deduction.
  • If the legal separation or divorce decree is finalized or changes are made to the agreement on or after January 01, 2019 then alimony payments are not an allowable deduction.

The allowable deduction for alimony can be found on Line 31a and 31b of the IRS Schedule 1 for IRS form 1040.

 

NECESSARY ACTION:

  • Review this memorandum and manual revisions with appropriate staff

 

RM/ag                                      

IM-146 DOMESTIC RELATIONS ORDERS FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) AND MAGI

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  DOMESTIC RELATIONS ORDERS FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) AND MAGI

MANUAL REVISION #104

0805.015.30

0410.015.10

1805.030.20.05

 

DISCUSSION:

The purpose of this memo is to introduce policy regarding Domestic Relations Orders (DRO).  A DRO is a court ordered division of property granting a spouse or dependent ownership of property or a portion of the property in the event of a divorce. 

Pensions and other retirement plans may be treated as property and divided after a divorce as a result of a DRO.  If this is the case, income resulting from the divided pension or retirement plan will belong to the individual who owns the property after the divorce.

Note:  A qualified domestic relations order (QDRO) is a common type of DRO utilized by non-government employers.

Example:  Miranda’s years of service entitle her to a $2400 monthly pension from the Sunflower Farms Retirement Plan.  As a result of a divorce, her pension is subject to a QDRO that stipulates her ex-spouse, Jeff, is entitled to 25% of her pension, or $600 per month.  Miranda’s countable monthly pension income is $1800.  Jeff’s countable monthly pension income is $600.

Do not budget income resulting from a DRO in the same way as alimony (maintenance) or child support.

MHABD section 0805.01530 Unearned Income, SAB section 0410.015.10 Unearned Income, and MAGI section 1805.030.20.05 Income Included Under MAGI have all been updated with this information.

Note:  The title of 0805.1530 Non-Earned Income has been updated to Unearned Income.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

RM/ers

IM-145 INCREASE IN VENDOR MINIMUM MONTHLY MAINTENANCE STANDARDS AND SHELTER STANDARDS ADJUSTMENTS IN VENDOR

FROM: REGINALD McELHANNON, INTERIM DIRECTOR
SUBJECT: INCREASE IN VENDOR MINIMUM MONTHLY MAINTENANCE STANDARDS AND SHELTER STANDARDS ADJUSTMENTS IN VENDOR
MANUAL REVISION #103
0815.030.10.10.10
0815.030.10.10.20
APPENDIX B

 

DISCUSSION:

Effective July 1, 2019, the Minimum Monthly Maintenance Needs Allowance (MMMNA) and Shelter Standard for Vendor cases are increased. FAMIS adjusted all Vendor cases on June 8, 2019.

This memorandum discusses the following:

NEW MMMNA AND SHELTER STANDARD

CASES ADJUSTED DURING MASS ADJUSTMENT

NOTICES

MANUAL UPDATES

FAIR HEARING REQUEST

 

NEW MMMNA AND SHELTER STANDARD

Allotments for community spouses, minor children, and eligible dependents and the Minimum Monthly Maintenance Needs Allowance (MMMNA) and Shelter Standard are revised for actions effective the month of July 2019 and later. The revised guidelines effective July 2019 are:

Minimum Maintenance Standard: $2,114
Shelter Standard: $634

 

CASES ADJUSTED DURING MASS ADJUSTMENT

FAMIS uses the current standards for the allotment and surplus determinations completed prior to the mass adjustment.

If a case contains a community spouse, minor or eligible dependent, FAMIS determines the proposed new allotment amount using the revised standards. The new allotment for a community spouse, minor or eligible dependent displays on the Allotment Information (ALLOT, FMJ6) screen in FAMIS. The new allotment for a minor not living with the community spouse displays on the Minor Living Outside Allotment Information (MINOR, FMJ2) screen.

If there is a change in the surplus amount, the cases are adjusted during the mass adjustment and a notice is sent to the participant. The change in the surplus amount displays on the Adult MO HealthNet Vendor Budget Summary (FMD8) screen.

To access the Adult MO HealthNet Vendor Budget Screen:

• Go to the EU Action Log (EULOG/FM40) screen;

• Select a Budget Month;

• Enter F17=INQAUTH;

• Select F16=MHABD;

• Select Coverage Type VEND and press F16=AGBUDSUM

After the adjustment, FAMIS determines allotments and surpluses for July 2019 and later using the new standards.

 

NOTICES

Cases resulting in no change from the mass adjustment do not receive an action notice. The following notices are sent depending upon the action:

• Adult MO HealthNet Benefit Action Notice (FA460) is sent for cases that result in an increase in benefits from the mass adjustment.

• Adult MO HealthNet Adverse Action Notice (FA420) is sent for cases that result in a decrease in benefits due to the adjustment.

• Adult MO HealthNet Benefit Notice (FA460) is sent once the adverse action notice expires.

• Adult MO HealthNet Provider Notice (FA-465) is sent to the facility for cases that result in any change in benefits.

 

MANUAL UPDATES

The following sections of the Medical Assistance for the Aged, Blind and Disabled, Vendor Eligibility have been updated to include this change:

0815.030.10.10.10 Determining the Allotment of the Community Spouse,

0815.030.10.10.20 Allotments for Minors and Dependants living with the Community Spouse, and

• Vendor Eligibility APPENDIX B

 

FAIR HEARING REQUEST

If the EU requests a fair hearing, send the request to the Administrative Hearings Unit (AHU) the same day. The IM Hearings Unit will send all Agency evidence to the AHU as soon as possible. All available evidence should be sent to the AHU with the original request for hearing. Do not wait until a few days before the hearing to send the evidence.

For budget adjustments, evidence includes, but is not limited to:

• FA-420 Adverse Action Notice

• FA-460 Action Notice

• Comments Screens

• Manual sections/legal references

• Adult MO HealthNet AG Budget Summary (FMD8) screen

Provide a copy of the evidence to the EU asking for the hearing and schedule a pre-hearing conference. If the EU designates an attorney or authorized representative for the hearing, send a copy of all notices and evidence for the hearing to the EU and the designated individual.

 

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

RM/vb

IM-144 MANUAL ADDITION TO GENERAL INFORMATION MANUAL FOR CASE REVIEWS FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED PROGRAM

FROM:  REGINALD E. McELHANNON, INTERIM DIRECTOR

SUBJECT:  MANUAL ADDITION TO GENERAL INFORMATION MANUAL FOR CASE REVIEWS FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED PROGRAM

MANUAL REVISION #102

0107.020.00

 

DISCUSSION:

The purpose of this memo is to introduce the addition of the manual section Case Reviews for MO HealthNet for the Aged, Blind, and Disabled Programs to the General Information Manual.

This addition is NOT a new process, but is adding the information from Email IM-67 from October 31, 2016 to the General Information Manual.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.
  • All questions regarding this memo should be directed to normal supervisory channels.

 

RM/cj

IM-143 MANDATORY FOOD STAMP UTILITY STANDARD POLICY UPDATE

FROM:  REGINALD E. MCELHANNON, INTERIM DIRECTOR

SUBJECT:  MANDATORY FOOD STAMP UTILITY STANDARD POLICY UPDATE

MANUAL REVISIONS #101

1115.035.25.15 Mandatory Utility Standards

1115.035.25.25 Special Situations

 

DISCUSSION:

The purpose of this memo is to inform staff of the update to Food Stamp policies, 1115.035.25.15 Mandatory Utility Standards and 1115.035.25.25 Special Situations. This update clarifies that when a portion of rent is used for utilities, even if not billed separately, each Food Stamp Eligibility Unit is entitled to the full appropriate utility standard(s) if otherwise eligible. 

If during the interview, the applicant claims rent and no utility or claims that utilities are included in rent, this must be clarified.   Staff should ask the clarifying question, “Has the landlord ever said that a specific amount of your rent is paid toward utilities and which utilities?”  If so, that amount should be subtracted from the total rent and budgeted toward the appropriate utility.  This policy update is due to a Food and Nutrition Service (FNS) clarification.

If the applicant does not know or cannot find out the specific amount that is budgeted to the utilities, do not allow the expense.

EXAMPLE:  An individual pays the landlord $600 per month.  Applicant states the landlord told them that $400 of this is for rent and $200 is for heating or cooling.  The rent is budgeted at $400 and $200 goes toward the appropriate utility.  This qualifies the individual for the standard utility allowance.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

RM/cs

IM-142 GATEWAY TO BETTER HEALTH MANUAL REVISIONS

FROM:  PATRICK LUEBBERING, DIRECTOR

SUBJECT: GATEWAY TO BETTER HEALTH (GTBH) EXTENSION AND EX PART

Manual Revision #100

1600.005.00

1600.030.00

1600.030.05

 

DISCUSSION:

The purpose of this memo is to announce that the Centers for Medicare and Medicaid Services (CMS) has authorized the extension of the GTBH waiver through December 31, 2022.

This memo is to inform staff that ex parte procedures must be followed before closing a GTBH case and to introduce a new section to the GTBH manual, 1600.030.05 Ex Parte Review.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.
  • Begin conducting ex parte reviews on GTBH cases.

 

PL/ers