Obsolete 0620 - 416-3 Disregard of RSDI Cola's

Policy Effective January 1, 2008 - May 31, 2020 (416-3 incorporated into 443 sections as of June 1, 2020)

(305-3 was renumbered to 416-3 as of November 1, 2017)

Contact DWS Program Specialist for previous policy

Disregard of COLA's

Disregard the amount of the COLA (cost of living adjustment) in Social Security benefits (RSDI), Railroad Retirement benefits and Black Lung benefits received in January, February and March until the month the increase in the poverty rates become effective if the COLA amount will cause the person to fail eligibility for one of the following programs.   

Aged and disabled 100% FPL program and

Medicare cost-sharing programs.

Who is Eligible for the Disregard

To be eligible for this disregard the client 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.

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.

Disregarding the COLA is not allowed in Family related poverty level programs.