2007 Memorandums
IM-117      12/07/07

P.O. BOX 2320


MANUAL REVISION #43: SECTIONS 0410.010.15, 0825.000.00, & APPENDIX E


Effective January 1, 2008, Social Security (OASDI) benefits increase in the annual Cost of Living Adjustment (COLA). The new amounts are as follows:

Percentage increase in benefits 2.3%
SSI Maximum, single person $637.00
SSI Maximum, two persons $956.00
SMI (Medicare Part B) premium $96.40
Maximum Allotment to Community Spouse $2,610.00
HCB Maximum $1,113.00
SAB Standard $688.00

NOTE: The SSI amounts are for information only. Use 85% of the Federal Poverty Level (FPL) for MO HealthNet for the Aged, Blind, and Disabled (MHABD) eligibility determinations.

Senate Bill 577 (2007) specified that programs in which income eligibility is determined by Federal Poverty Level (FPL) will not be adjusted for changes in OASDI or SSI benefits until the next FPL adjustment. Cases not being adjusted for OASDI/SSI income due to the SB 577 (2007) include the Family Healthcare Programs, MO HealthNet for the Aged, Blind, and Disabled (MHABD) spenddown and non spenddown, and the Ticket to Work Health Assurance (TWHA) Program. More information concerning cases not being adjusted will be issued in separate memorandums.

The Cost of Living Adjustments will be made on the weekend of December 8, 2007. Use the current amount of OASDI when entering IMU5 transactions prior to the mass adjustment. After the mass adjustment, enter the new amount of OASDI benefits.

For applications approved after the mass adjustment, verify the new OASDI amount. If the new amount is unavailable and the old amount of Social Security benefits has been verified, multiply the old amount by 1.023 to arrive at the approximate new amount of benefits. A BENDEX printout will be sent to verify the new amount of benefits as soon as BENDEX data exchange is established on the individual. State office will compute the new OASDI amount and SSI amount and the resulting grant and surplus amounts.

State Office will complete the adjustment as follows:

NOTE: No paper reports or notices will be produced for counties. These documents will be on MOBIUS.

County staff must handle the case when:

Refer to specific instructions later in this memorandum.


During the weekend of December 8, 2007, State Office will complete adjustments for the following types of assistance and send adverse action or adjustment notices to participants:


The Legacy computer program identifies participants that receive OASDI, either from BENDEX or from the IM database. The system then updates the OASDI amount field with the new figure (calculated from BENDEX or calculated from the IM database). The COLA increase is added to the gross and net income figures (fields 34 and 41), and a new deficit or surplus amount is calculated for field 35. If the increase appears to cause ineligibility based on a surplus of income, some cases are closed with an adverse action notice sent to the participant and other cases are listed for review by the Eligibility Specialist. If no OASDI amount appears in 14M, but there is OASDI income included based upon the income code entered in field 25, the total new amount of OASDI will be added to the income fields in 41 and 34, because the system cannot determine if the figure in field 41 includes OASDI. For these cases, the Eligibility Specialist must make the correct adjustment by entering the new amount of OASDI in fields 14M, 34 and 41. The Eligibility specialist must also send the IM-80 to reduce the grant.

Vendor cases are adjusted by changing the surplus amount the claimant must pay the nursing home. The system generates a notice of adjustment to the nursing home in addition to the participant notice.

If a case does not appear on BENDEX but shows OASDI in field 14M, the case may be adjusted. Cases will be adjusted by applying the 2.3% increase to the OASDI amount shown in field 14M. For these cases, if the amount in 14M is wrong, the adjustment will be wrong. The Eligibility Specialist is responsible for correcting field 14M and any other affected figures. Because SMI premium information will not be available from BENDEX on percentage adjusted cases, the system will attempt to identify premium payers and will assume the premium is $93.50 as of December 2007. Because not every SMI premium is $93.50, a small portion of percentage adjusted cases may be wrong due to this assumption. Therefore, each percentage adjusted case is marked with an asterisk (*) to help staff indentify them in case of incorrect adjustments.

No IM-5 turnarounds will be produced for this adjustment. These cases will appear on a reported titled “Cases Adjusted”. County offices can access this report on MOBIUS. In some instances, case information is incomplete or incorrect, or otherwise cannot be mass adjusted. Counties must review these cases using the MOBIUS lists. Each case listed includes a caption to identify why the case could not be adjusted. Review the listed cases and manually adjust if necessary. For example, if the expenses figures for a Supplemental Aid to the Blind case is not the maximum grant amount for the household size, the computer program cannot make the correct computations from an incorrect expense figure and the case cannot be adjusted.

For all types of assistance, cases that will not be adjusted include:

Listing of Cases Not Adjusted by State Office which Need Action by County Staff

There is one list of cases not adjusted:

Cases with BENDEX Discrepancies

This list shows information for all types of assistance:

Captions and possible actions for BENDEX discrepancies:

Cases Adjusted-Review for Further Action

Also included on the listing of cases adjusted are the following situations, which require Eligibility Specialist review to determine if further adjustment is needed. Individuals appearing on this listing with “Not Included” captions must be reviewed for necessary action.

NOTE: Review all cases listed in MOBIUS for manual adjustment and make necessary changes.

Hearings on Computer Adjusted Cases

The adverse action notices generated by the mass adjustment will be dated December 10, 2007. The participant will have until December 20, 2007 to request a hearing and have benefits restored to pre-adjustment levels.

If the participant requests a hearing on or before December 20, 2007, complete an IMU5 transaction to cancel the computer adjustment (i.e., cancel-close a closed case, restore a grant, etc.) and follow usual hearing procedures. Immediately print a copy of the computer generated IM-80, available on MOBIUS.

If the participant does not respond by December 20, 2007, no further case action is necessary.

Listing of Cases Adjusted

Cases that are mass-adjusted are included on one of several listings in MOBIUS.

“Not Included” on the “Cases Adjusted” list requires action. All others are for informational purposes. Note that any caption flagged with an asterisk means that the case was adjusted according to a percentage calculation and may not exactly match SSA information. All lists include a footnote on each page as a reminder.

  1. Cases Adjusted

    This list is sorted by county, load, and program. The participants are listed alphabetically within program. The date of any IM-80 generated by the system for this adjustment appears in the upper right corner of the listing.

    NOTE: All cases appearing with a caption of “Not Included” for any individual MUST be reviewed for necessary action by the county.

  2. Captions

    • Not Included - This caption indicates that the individual is not included in the case budget, and therefore has no affect on the adjustment computations. However, these individuals must be reviewed by the county for necessary action. Identifying information also appears on the listing for these individuals.

    • CLOSE - The case was closed in the mass adjustment.

    • NO CHG - The mass adjustment resulted in no change to the case.

    • DECR - The grant was decreased in the mass adjustment.

    • Surp Inc - The surplus was increased in the mass adjustment.

    • Surp Inc/Allot - The surplus was increased for an allotment case in the mass adjustment.

    • Surp Dec/Allot - The surplus was decreased for an allotment case in the mass adjustment.

  3. Surplus Changes as a Result of OASDI Increases

    Each vendor nursing home or institution receives a listing of its residents with OASDI. This list shows the case number, case name, old surplus amount and new surplus amount. The list includes a letter to the administrator of the nursing home.

    Use the IM-62 to notify the vendor of any correction in the January surplus amount or to supply the January 2008 surplus amount for any participant with OASDI who is not on the vendor's listing.

    Use normal procedures for changing surplus amounts when an error is discovered:

    • For increases, the effective date is the month following the expiration of the IM-80 or the signing of the IM-80A and

    • For decreases, the effective date is the month following the month of the report or discovery.

      See the online manual 0815.000.00 for more information.

Cases Bypassed

The county is not required to act on bypassed cases. They will not be adjusted or listed. The following cases will be bypassed during the mass adjustment:

Notices to Participants

Adverse action notices and notices of adjustment will be generated by the system and mailed to participants. The following are samples of the notices being sent to participants. These are attached for informational purposes only. For hearing requests, access the copy of the notice sent to the recipient in MOBIUS. To view examples of the notices, click on the appropriate link(s) below:

Food Stamps and Temporary Assistance Mass Adjustments

Instructions for handling Food Stamp and Temporary Assistance cases are covered in a separate memorandum.



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