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State of Wisconsin |
HISTORY |
The policy on this page is from a previous version of the handbook.
A Disabled Adult Child (DAC) is:
At least 18 years old at the time SSI was lost.
Classified by the Social Security Administration as disabled before age 22.
Receives an OASDI (DAC) payment that is based on the earnings of a parent who is disabled, retired, or deceased.
Note: Receipt of Railroad Retirement is not considered OASDI for this policy.
Was receiving SSI, but lost SSI eligibility because the OASDI (DAC) payment exceeded the SSI income limits.
When a Disabled Adult Child applies for Medicaid, disregard all OASDI (DAC) payments which caused him or her to lose SSI eligibility.
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Example 1: George is an SSI recipient. While his father worked, George received a monthly SSI payment of $686.78. When his father retired and began receiving $1000 a month in social security, George began receiving an OASDI (DAC) payment of $500 a month (50% of his father's social security payment). His monthly check is $706.78 ($500 DAC + $186.78 SSI + $20 SSI unearned income disregard).
When George's father dies, George begins receiving a DAC payment of $750 a month (75% of his father's social security payment). This puts him over the SSI income limit ($686.78 + $20 unearned income disregard = $706.78). He loses SSI.
When he applies for EBD Medicaid, disregard the total increase of $250 ($750 - $500 = $250). |
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Example 2: Harvey is an SSI recipient. While his father works, Harvey receives a monthly SSI payment of $686.78. When his father retires and receives $1800 per month in social security, Harvey begins receiving an OASDI (DAC) payment of $900 (50% of his father’s Social Security payment). This $900 payment makes Harvey ineligible for SSI.
When Harvey applies for EBD Medicaid, the initial DAC payment of $900 will be disregarded when his EBD Medicaid eligibility is determined. |
Periods of Medicaid ineligibility do not affect this disregard. When the person reapplies, give the disregard to him or her again.
When a Disabled Adult Child applies for Medicaid, disregard all OASDI COLAs since the last month he or she was eligible for and received both OASDI and SSI benefits. Calculate the COLA disregard amount (25.1.2 Identifying a "503" AG).
If the Disabled Adult Child was receiving SSI-E, disregard both the state SSI-E Supplement (39.4 EBD Assets and Income Tables) and the COLA.
Periods of Medicaid ineligibility do not affect this disregard. When the person reapplies, give the disregard to him or her again.
An individual who loses their SSI eligibility due to the receipt of an initial DAC benefit or increase in their current DAC benefit is entitled to the following disregards when determining their eligibility for Medicaid:
The DAC payment, either initial or increase which made them ineligible for SSI.
The SSI-E supplement, if the individual was receiving the E supplement at the time they became ineligible for SSI.
All COLAs received since the last month that the individual was eligible for and received both OASDI and SSI benefits.
This page last updated in Release Number: 08-01
Release Date: 02/01/08
Effective Date: 02/01/08
The information concerning the Medicaid program provided in this handbook release is published in accordance with: Titles XI and XIX of the Social Security Act; Parts 430 through 481 of Title 42 of the Code of Federal Regulations; Chapters 46 and 49 of the Wisconsin Statutes; and Chapters HA 3, DHS 2, 10 and 101 through 109 of the Wisconsin Administrative Code.
Notice: The content within this manual is the sole responsibility of the State of Wisconsin's Department of Health Services (DHS). This site will link to sites outside of DHS where appropriate. DHS is in no way responsible for the content of sites outside of DHS.
Publication Number: P-10030