Medicaid Policy
Medicaid Policy
Previous Policy (416-3 renumbered to 443-3 as of June 1, 2020)
A. Disregard of COLA
Aged and disabled people eligible for the 100% FPL program qualify for a temporary disregard of their COLA increase. The disregard applies to COLA increases in Social Security benefits (RSDI), Railroad Retirement benefits and Black Lung benefits.
· The COLA amount received in the months at the beginning of the calendar year (usually January and February) does not count to determine eligibility for the 100% FPL group.
· The COLA starts to count in the month the increase in the poverty rates become effective. This is usually March; however, if the FPL rate does not change until April, disregard the COLA in March as well.
· This disregard also applies to individuals eligible for a Medicare Cost-Sharing program. (Aged, blind, disabled and renal failure Medicare recipients)
B. Who is Eligible for the Disregard
1. To be eligible for this disregard the individual must be eligible for the aged and disabled 100% FPL program or a Medicare cost-sharing program in the December before the COLA increase takes effect. This includes applicants who become retroactively eligible for the aged and disabled 100% FPL program or the SLMB and QI Medicare cost-sharing programs for the December immediately before the COLA takes effect.
2. The COLA increase is not disregarded in determining countable income for the MWI or spenddown groups.
· The 100% of FPL spenddown level used for the Aged, Blind and Disabled spenddown groups, and the 250% FPL level for the MWI do not increase until after the new poverty levels become effective.
· Blind individuals with income below 100% FPL do not receive a disregard of the COLA to determine whether they will owe a spenddown for January and February (or March depending on the FPL effective date.) This means a Blind Medicaid recipient could owe a small spenddown in those months.
3. Disregarding the COLA is not allowed in Family related poverty level programs.