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Wisconsin Department of Health and Family Services |
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Wisconsin Department of Health and Family Services |
5.11.2.1 DAC Payment Disregard
A Disabled Adult Child (DAC Disabled Adult Child) 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 Income is anything you receive in cash or in kind that you can use to meet your needs for food, clothing, and shelter. limits.
When a Disabled Adult Child applies for MA, disregard all OASDI (DAC) payments which caused him/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 $635.78. 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 $635.78 ($500 DAC + $135.78 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 ($553.78 + $20 unearned income disregard = $573.78). He loses SSI.
When he applies for EBD MA, 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 $635.78. 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 MA, the initial DAC payment of $900 will be disregarded when his EBD MA eligibility is determined. |
Periods of MA ineligibility do not affect this disregard. When the person reapplies, give the disregard to him/her again.
When a Disabled Adult Child applies for MA, disregard all OASDI COLAs since the last month s/he was eligible for and received both OASDI and SSI benefits. Calculate the COLA Cost of Living Adjustment disregard amount (5.11.1.2).
If the Disabled Adult Child was receiving SSI-E, disregard both the state SSI-E Supplement (8.1.5) and the COLA.
Periods of MA ineligibility do not affect this disregard. When the person reapplies, give the disregard to him/her again.
This page last updated in Release Number : 05-02
Release Date: 05/10/05
Effective Date: 05/10/05
