MEMORANDUM

DISCUSSION:

This memorandum is to inform staff of the cost of living adjustment (COLA) for MAGI programs.  Individuals who receive income from Social Security Administration (SSA), Supplemental Security Income (SSI), Veterans Administration (VA), and Railroad Retirement (RR) will receive a 0.3% increase.

SSA/SSI

Individuals in MEDES, with SSA/SSI income that matches the SDX, will have their income updated for COLA.  Since the SSA/SSI claim number field was recently added to MEDES, the match will pull using the Social Security Number (SSN) instead of the claim number.  During COLA, the claim number will be automatically pulled into MEDES by matching the SSN with the claim number on the BENDEX file. 

Any SSA/SSI income that displays in MEDES, but isn't on the SDX or BENDEX file will increase by 0.3%. 

For individuals who display SSI/SSA income in MEDES, the increase will not take effect until 4/1/2017.  For individuals who are on the SDX or BENDEX file with income, but MEDES does not display SSI/SSA income, the income will be populated into MEDES and take effect in January (as necessary). 

RR/VA

RR and VA income will increase by 0.3% during COLA.

Error Report

An error report will be created to identify cases that errored during COLA.  The error report will contain individuals whose SSA/SSI income is brought into MEDES from the SDX/BENDEX files and: 

• Cases that are on hold in MEDES
• There is evidence in edit
• The case is pending
• The case is in the process of an adverse action
• Individuals in MEDES who do not have a SSN

  NOTE:  Individuals in MEDES who do not have a SSN will not be matched to the SDX or BENDEX file; therefore these individuals will need to be adjusted separately to match the income with the correct individual. This process will be completed after COLA, but before FPL.

Notices

For case updates made as a result of COLA, MEDES will propose and finalize the decision and send out the appropriate notices.  The reasons and notices that will be sent are as follows:

• Cases with no change will be sent the IM-33C.
• Cases that result in benefit reduction will be sent an IM-80 allowing 10 days for the individual to respond to the proposed case determination.  After the IM-80 period expires, the IM-33C will be sent.
• Cases with individuals who no longer qualify, and the proposed determination is termination of benefits:  an IM-80PRE will be sent allowing 10 days for the individual to respond to the proposed case determination.  After the IM-80PRE period expires, an IM-80 will be sent allowing an additional 10 day period.  After the IM-80 period expires, the IM-33C will be sent.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

PL/ks