MEMORANDUM

DATE:             December 1, 2003

TO:                  All Medical Assistance Manual Holders

FROM:            Policy and Program Development Team

                         Ellie Fitzjarrald, Chief

SUBJECT:    Medical Assistance Manual Change #26

Each year, the Family Medicaid and Long Term Care Standards are adjusted.  The Family Medicaid standards are adjusted by the same percentage as the Cost of Living Allowance ( COLA Cost of Living Allowance ) increase in Social Security Benefits. These Family Medicaid standards are also used to determine eligibility for Under 21 Medicaid, and non-IV-E Foster Care and Adoption Assistance.

The Long Term Care ( LTC Long Term Care ) Standards are based on a percentage of the SSI Supplemental Security Income standards and the Consumer Price Index Increase from September 2002 to September 2003.  The LTC Long Term Care Need Standard and the Home and Community Based Personal Needs Allowance are frozen at the 2003 standards.  The Community Spouse Resource Allowance, Community Spouse Monthly Maintenance Need Standard, and the Monthly Need Standard for Additional Household Members have increased.

This manual change incorporates the 2004 standards, updates the Denali KidCare and Pregnant Woman Medicaid Income Standard reductions that became effective September 1, 2003, makes several minor changes to update or clarify policy, adds new resources and income exemptions for payments made under the Energy Employees Occupational Illness Compensation Act, and removes policies related to the Alaska Longevity Bonus.  

For consistency between program manuals and ease of use, the income standards have been removed from Section 5032 and placed in Addendum 1, the standards removed from Section 5172 are placed in Addendum 2, and Addendum 3 has also been added to include the Long Term Care and Other APA Adult Public Assistance -Related Medicaid Standards that have not been included previously in the manual.

Highlights of these policy revisions are described below.  If you have any questions, please contact any member the Policy and Program Development Team at 465-3347 or email us at dpapolicy@health.state.ak.us.  

OVERVIEW OF CHANGES

5016-5 - Withdrawal from Cash Support Enforcement

Removes outdated policy regarding the MED 10B form used to withdraw from cash support enforcement.  The CSED 1603 revised 02/26/02 includes this option.

5018 - Development of Income

Clarifies policy that the entire household loses eligibility if an individual does not apply for other available benefits unless there is good cause.  If the individual who failed to apply and pursue other benefits is an optional household member, then his or her needs are removed and the case left open for the remaining members.

5030 - Alaska Longevity Bonus

This section is removed.

5031 – Permanent Fund Dividend

This section is removed.  Policy is already included in MS Manual Section 5154-6 and MS Manual Section 5161-18.

5032 - Federal Poverty Guidelines for Alaska

This section is removed.  Income standards based upon the federal poverty guidelines for Alaska are now included in Addendum-1 and Addendum-3.  

5154-6 - Other Exclusions

Adds policy to exempt resources from payments made under the Energy Employees Occupational Illness Compensation Act.  

5161-21 – Subsidized Guardianship Payments

This section is simplified.

5161-22 - Energy Employees Occupational Illness Compensation Payments

New subsection provides policy to exempt payments received under the Energy Employees Occupational Illness Compensation Act.

6164-6 - Allowable Costs of Doing Business

Updates the mileage allowance for a vehicle used less than 50% of the time for business.

5172 - Income Eligibility

Reorganized and clarifies the two-step process in determining Medicaid eligibility.  Removes income eligibility standards charts, which are now included in Addendum–2.

5185-1 Change Reporting Requirements

Updates the reporting requirement for unearned income to the new $50 threshold for alignment with the Food Stamp and Temporary Assistance programs.

5300 – Denali KidCare

Updates policy on the DKC Denali KidCare income standards.  The 200% standard was reduced to 175% FPG Federal Poverty Guidelines and frozen at that level.

Changes the Division of Medical Assistance to the Division of Health Care Services, and changes the routing for the economic hardship requests to the Division of Public Assistance.

Manual Change Filing Instructions