IM-152 ADOPTION SUBSIDY ADDED AS MAGI EXCLUDED INCOME

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  ADOPTION SUBSIDY ADDED AS MAGI EXCLUDED INCOME

MANUAL REVISION #

1805.030.20.10                        

DISCUSSION:

The purpose of this memorandum is to correct manual section 1805.030.20.10 Income Excluded Under MAGI as per Memo IM-#28 from 5/11/2016.  Adoption Subsidy is now included on the list of Excluded Income. 

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/df

IM-151 COVID-19 SIXTH EXTENSION OF PANDEMIC SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (P-SNAP) EMERGENCY ALLOTMENTS

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  COVID-19 SIXTH EXTENSION OF PANDEMIC SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (P-SNAP) EMERGENCY ALLOTMENTS

DISCUSSION:

The Families First Coronavirus Response Act (FFCRA) allows for Emergency Allotments (EA) of supplemental benefits for the Supplemental Nutrition Assistance Program (SNAP) to be issued to eligible SNAP households. The P-SNAP program raises a household’s SNAP allotment to the maximum amount for the household size.

Supplemental benefits have been issued by the Family Support Division (FSD) in March through September 2020 as part of the P-SNAP program. P-SNAP has been extended through October 2020 and benefits are available beginning October 9, 2020. Beyond October 2020, participation in P-SNAP will be decided on a month to month basis during the COVID-19 health crisis.

SNAP households do not need to apply for P-SNAP. The supplemental benefit will be automatically added to the Electronic Benefit Transfer (EBT) card.

Note: Households that already receive the maximum allotment for their household size will not have a benefit increase.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

KE/ks

IM-150 CORRECTION OF LINK IN THE BREAST AND CERVICAL CANCER TREATMENT MANUAL

FROM: KIM EVANS, DIRECTOR

SUBJECT: CORRECTION OF LINK IN THE BREAST AND CERVICAL CANCER TREATMENT MANUAL

MANUAL REVISION #
1305.025.05 

DISCUSSION:

The purpose of this memo is to correct a link in the Breast and Cervical Cancer Treatment manual. The link to a map of Show Me Healthy Women providers is found at: https://health.mo.gov/living/healthcondiseases/chronic/showmehealthywomen/providermap.php

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/df

IM-149 REVISION OF MAGI HOUSEHOLD COMPOSTION FOR TAX FILERS SECTION IN THE MO HEALTHNET FOR FAMILIES (MAGI) MANUAL

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  REVISION OF MAGI HOUSEHOLD COMPOSTION FOR TAX FILERS SECTION IN THE MO HEALTHNET FOR FAMILIES (MAGI) MANUAL

MANUAL REVISION #
1805.030.10.10

DISCUSSION:

Section 1805.030.10.10 MAGI Household Composition for Tax Filers is updated to clarify separated individuals do not count in one another’s MAGI household.

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/ers

IM-148 NET OPERATING LOSS AND CARRYOVER USED FOR INCOME CALCULATIONS FOR FAMILY MO HEALTHNET PROGRAMS

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  NET OPERATING LOSS AND CARRYOVER USED FOR INCOME CALCULATIONS FOR FAMILY MO HEALTHNET PROGRAMS

MANUAL REVISION #

1805.030.20.05

DISCUSSION:

The Internal Revenue Service (IRS) defines Net Operating Loss (NOL) as when deductions exceed your gross income for the year. This is most commonly used to refer to a business loss. When a tax filer has a NOL, they are allowed to claim this as a negative income. The negative income may be allowed to carry over for multiple years until the NOL is exhausted, following the guidance of the IRS and tax professionals.

This loss of income is shown on Form 1040, Schedule 1 as a negative amount listed on the “Other Income” line, Line 8.

Verification of this negative income requires a statement that includes:

  • How the NOL was calculated,
  • What year the NOL occurred and any deductions that have been claimed in previous years, and
  • The amount of NOL that has not been exhausted.

EXAMPLE: Ms. McKee is self-employed. In 2010, she had a net operating loss with her business of $100,000. Each year she claims a portion of this loss as a negative income on her tax return. When she applied for MO HealthNet on January 16, 2020, she provided a copy of her 2019 tax return, her 2019 Schedule 1 showing a negative amount on “Other Income,” and a written statement regarding the NOL. The statement showed the amount she has claimed from the NOL each tax year since 2010. She provides a calculation from her tax professional showing that she claimed a $13,250 NOL negative income for her 2019 tax return.

For Family MO HealthNet Programs, using the Modified Adjusted Gross Income (MAGI) methodologies, participants who claim a NOL on their income tax return may use this as a negative income source, whether they are currently receiving self-employment income or not. The negative income can be claimed indefinitely until the NOL amount is exhausted, even if the self-employment income ends. This was added to the manual as an allowable income source, 1805.030.20.05 Income Included Under MAGI.

EXAMPLE: From the example above, if Ms. McKee still owns her self-employment business, she would be allowed a negative income amount included in her MAGI income calculation and also business expenses shown on her 2019 tax return.

EXAMPLE: From the example above, if Ms. McKee no longer owns her business, she would be allowed the NOL as a negative income to adjust the countable income from all other sources.

Staff should follow current procedures for entering negative income and should refer to MEDES Resources to make sure it is entered correctly. If a NOL was allowed and verified previously, staff must verify the amount for each year before allowing the negative income. The negative income amount can vary each year and once the NOL is exhausted, the negative income can no longer be allowed.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.
  • Allow negative income calculations for applicable MAGI cases immediately.
  • Send all questions through normal supervisory channels.

 

KE/cj

 

 

IM-147 COVID-19 SEVENTH EXTENSION OF PANDEMIC SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (P-SNAP) EMERGENCY ALLOTMENTS

FROM: KIM EVANS, DIRECTOR

SUBJECT: COVID-19 SEVENTH EXTENSION OF PANDEMIC SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (P-SNAP) EMERGENCY ALLOTMENTS

DISCUSSION:

The Families First Coronavirus Response Act (FFCRA) allows for Emergency Allotments (EA) of supplemental benefits for the Supplemental Nutrition Assistance Program (SNAP) to be issued to eligible SNAP households. The P-SNAP program raises a household’s SNAP allotment to the maximum amount for the household size.

Supplemental benefits have been issued by the Family Support Division (FSD) in March through October 2020 as part of the P-SNAP program. P-SNAP has been extended through November 2020. Beyond November 2020, participation in P-SNAP will be decided on a month to month basis during the COVID-19 health crisis.

SNAP households do not need to apply for P-SNAP. The supplemental benefit will be automatically added to the Electronic Benefit Transfer (EBT) card.

Note: Households that already receive the maximum allotment for their household size will not have a benefit increase.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/ks

IM-146 FOOD STAMP PROGRAM NAME CHANGE TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  FOOD STAMP PROGRAM NAME CHANGE TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)                                   

DISCUSSION:

This memorandum is to notify staff that the Food Stamp Program name changed to Supplemental Nutrition Assistance Program (SNAP) effective September 23, 2020.  The change is in compliance with Food and Nutrition Services (FNS) Federal Regulation 7 CRF Parts 271 and 274, which the program name from Food Stamps to SNAP.

Begin using the program name, SNAP in place of Food Stamps in daily business.  Forms, notices, and system updates will occur over the next twelve (12) months. 

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/ks 

IM-145 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) MANUAL REVISION DELAYS IN PROCESSING

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) MANUAL REVISION DELAYS IN PROCESSING

MANUAL REVISION #

1130.025.00 Delays in Processing

DISCUSSION:

The purpose of this memo is to inform staff of the SNAP Manual update regarding Delays in Processing. The manual will now explain that the eligibility system will default to the client delay code when an application is overdue.

If the agency is the cause of the delay, the code will need to be updated and agency delay will need to be entered.

It is important that the correct delay code be entered as this will affect the benefit proration date.

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/cs

 

IM-144 OCTOBER SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)/FOOD STAMP MASS ADJUSTMENT

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  OCTOBER SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)/FOOD STAMP MASS ADJUSTMENT

MANUAL REVISIONS:

1105.015.04.05

1115.035.05

1115.035.25

1115.035.25.15

1115.099.00

1135.010.07.05

1115.035.25.40

0815.030.10.10.10

Appendix B

Appendix J

DISCUSSION:

The October SNAP/Food Stamp Mass Adjustment occurred over the weekend of September 12, 2020. All policies and updated information will go into effect for all applicants and customers as of October 1, 2020.

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

  • Updates to the Maximums, Utility standards 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    $181

5 Household Members    $212

6+ Household Members   $243

Utility Standards

SUA  $404

NHCS  $319

LUA  $131

Telephone  $ 65

Excess Shelter Deduction

$586

Homeless Standard Deduction

$156.74

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

09/12/2020

102020

No Change

NOCH

09/12/2020

102020

Reduction

REDU

09/20/2020

102020

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.

Decreased Benefits or Case Closings

EUs with cases that have an allotment decrease and those whose 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. Staff 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 staff to take action. When staff 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 25, 2020. 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 010.07.05 – Update example to remove example with standard deduction
  • Section 035.25.40 –Update Homeless Standard Deduction

The following information has been revised on the intranet:

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 staff. The MHABD manual has been updated to reflect the new standards, in Appendix B, Appendix J and 0815.030.10.10.10 Determining Allotment to the Community Spouse.

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

KE/ja

IM-143 REVISION OF THE VENDOR COMMUNITY SPOUSE ALLOTMENT SECTION OF THE MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED MANUAL, AND UPDATE OF THE VENDOR WORKER INITIATED BUDGET CALCULATION AREA (WIBCA) FOR COMMUNITY SPOUSE ALLOTMENTS

FROM:  KIM EVANS, DIRECTOR

SUBJECT:  REVISION OF THE VENDOR COMMUNITY SPOUSE ALLOTMENT SECTION OF THE MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED MANUAL, AND UPDATE OF THE VENDOR WORKER INITIATED BUDGET CALCULATION AREA (WIBCA) FOR COMMUNITY SPOUSE ALLOTMENTS

MANUAL REVISION #

0815.030.10.10.10

DISCUSSION:

The purpose of this memorandum is to inform staff the MO HealthNet for the Aged, Blind, and Disabled manual section 0815.030.10.10.10 Determining the Allotment to the Community Spouse has been revised to correct a typographical error in a statement which now reads; “a utility expense need not be a major heating/cooling expense to qualify for a utility standard”, and to also inform staff of changes made in FAMIS to the WIBCA for a vendor community spouse allotment.

The Community Spouse Allotment Summary Screen/(FMHH) in WIBCA has been updated to reflect the correct utility allowance standards used when determining an allotment to a community spouse whose spouse is institutionalized and receiving vendor nursing home level of care.

Refer to the Allotment Information Screen FAMIS guide for steps when determining an allotment for approval month and ongoing. Refer to the Training Guide for steps on how to add a WIBCA for Prior Quarter after Authorization. Continue to follow standard practices and procedures for determining when a WIBCA is necessary. Appendix B contains the minimum and maximum maintenance standards. These are the amounts FAMIS uses to calculate the allotment by comparing these standards to the actual living expenses of the community spouse.  

Refer to the MO HealthNet for the Aged, Blind, and Disabled Manual section 0815.030.10.10 Allotments for additional information.  

 

NECESSARY ACTION:

  • Review this memorandum with appropriate staff.

 

KE/vm