Proposed Rule2023-02731
Omitting Food From In-Kind Support and Maintenance Calculations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 15, 2023
Issuing agencies
Social Security Administration
Abstract
We propose to update our regulations to remove food from the calculation of In-Kind Support and Maintenance (ISM). We also propose to add conforming language to our definition of income, excluding food from the ISM calculation. Accordingly, Supplemental Security Income (SSI) applicants and recipients would no longer need to provide information about their food expenses for us to consider in our ISM calculations. We expect that these changes will simplify our rules, making them less cumbersome to administer and easier for the public to understand and follow. These simplifications would make it easier for SSI applicants and recipients to comply with our program requirements, which would save time for both them and us, and improve the equitable treatment of food assistance within the SSI program. The proposed rule also includes other, minor revisions to the regulations related to income, including clarifying our longstanding position that income may be received "constructively" (we will define this term below).
Full Text
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<title>Federal Register, Volume 88 Issue 31 (Wednesday, February 15, 2023)</title>
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[Federal Register Volume 88, Number 31 (Wednesday, February 15, 2023)]
[Proposed Rules]
[Pages 9779-9796]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-02731]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
[Docket No. SSA-2021-0014]
RIN 0960-AI60
Omitting Food From In-Kind Support and Maintenance Calculations
AGENCY: Social Security Administration.
ACTION: Notice of Proposed Rulemaking.
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SUMMARY: We propose to update our regulations to remove food from the
calculation of In-Kind Support and Maintenance (ISM). We also propose
to add conforming language to our definition of income, excluding food
from the ISM calculation. Accordingly, Supplemental Security Income
(SSI) applicants and recipients would no longer need to provide
information about their food expenses for us to consider in our ISM
calculations. We expect that these changes will simplify our rules,
making them less cumbersome to administer and easier for the public to
understand and follow. These simplifications would make it easier for
SSI applicants and recipients to comply with our program requirements,
which would save time for both them and us, and improve the equitable
treatment of food assistance within the SSI program. The proposed rule
also includes other, minor revisions to the regulations related to
income, including clarifying our longstanding position that income may
be received ``constructively'' (we will define this term below).
DATES: To ensure that your comments are considered, we must receive
them no later than April 17, 2023.
ADDRESSES: You may submit comments by any one of three methods--
internet, fax, or mail. Do not submit the same comments multiple times
or by more than one method. Regardless of which method you choose,
please state that your comments refer to Docket No. SSA-2021-0014 so
that we may associate your comments with the correct regulation.
Caution: You should be careful to include in your comments only
information that you wish to make publicly available. We strongly urge
you not to include in your comments any personal information, such as
Social Security numbers or medical information.
1. Internet: We strongly recommend that you submit your comments
via the internet. Please visit the Federal eRulemaking portal at
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Use the ``search'' function to find docket
number SSA-2021-0014. The system will issue a tracking number to
confirm your submission. You will not be able to view your comment
immediately because we must post each comment manually. It may take up
to one week for your comment to be viewable.
2. Fax: Fax comments to 1-833-410-1631.
3. Mail: Mail your comments to the Office of Regulations and
Reports Clearance, Social Security Administration, 6401 Security
Boulevard, 3rd Floor (East) Altmeyer Building, Baltimore, Maryland
21235-6401.
Comments are available for public viewing on the Federal
eRulemaking portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> or in person, during
regular business hours, by arranging with the contact person identified
below.
FOR FURTHER INFORMATION CONTACT: Tamara Levingston, Office of Income
Security Programs, 6401 Security Blvd., Robert M. Ball Building, Suite
2512B,
[[Page 9780]]
Woodlawn, MD 21235, 410-966-7384. For information on eligibility or
filing for benefits, call our national toll-free number, 1-800-772-1213
or TTY 1-800-325-0778, or visit our internet site, Social Security
Online, at <a href="https://www.socialsecurity.gov">https://www.socialsecurity.gov</a>.
SUPPLEMENTARY INFORMATION:
Background
We administer the Supplemental Security Income (SSI) program. SSI
provides monthly payments to: (1) adults and children with a disability
or blindness; and (2) adults age 65 and older. These individuals must
meet multiple eligibility requirements, including having resources and
income below specified amounts.\1\ Resources are cash or other liquid
assets, or any real or personal property that individuals (or their
spouses, if any) own and could convert to cash to be used for their
support and maintenance.\2\ Income is anything the applicant or
recipient receives in cash or in-kind that can be used to meet food and
shelter needs.\3\ Applicants' and recipients' resources may affect
their SSI eligibility, while their income may affect both their
eligibility and payment amounts.
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\1\ See 20 CFR 416.202 for a list of the eligibility
requirements. See also 20 CFR 416.420 for general information on how
we compute the amount of the monthly payment by reducing the benefit
rate by the amount of countable income as calculated under the rules
in subpart K of 20 CFR part 416.
\2\ 20 CFR 416.1201.
\3\ 20 CFR 416.1102. See also 20 CFR 416.1103 for examples of
items that are not considered income.
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Once a claimant is found eligible for SSI, their monthly payment is
determined by subtracting countable income from the Federal benefit
rate (FBR), which is the monthly maximum Federal SSI payment.\4\ The
FBR for 2023 is $914 for an individual and $1,371 for an eligible
individual with an eligible spouse.\5\
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\4\ See 20 CFR 416.405 through 416.415. Some States supplement
the FBR amount.
\5\ 87 FR 64296, 64298 (2022). A table of the monthly maximum
Federal SSI payment amounts for an eligible individual, and for an
eligible individual with an eligible spouse, is available at <a href="https://www.ssa.gov/oact/cola/SSIamts.html">https://www.ssa.gov/oact/cola/SSIamts.html</a>. When the FBR is adjusted for
the cost of living, the amount of the potential ISM reduction
adjusts accordingly.
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Typically, after the first $65 earned each month, a recipient's SSI
benefit will be reduced 50 cents for every $1 of earned income. For
example, a recipient who earns $101 each month from a part-time job
would receive $896 in monthly benefits in 2023. This is calculated by
excluding the first $65 of the $101 earned ($36 remaining) and then
reducing the SSI payment by half of that amount--an $18 reduction
against the original payment of $914. Additionally, for income that is
unearned (for example, cash received from a family member), after the
first $20 received each month, for each dollar of unearned income a
recipient's SSI payment is reduced by $1. For example, a recipient who
received $50 from a grandparent each month would receive in $884 in
monthly SSI benefits. This is calculated by excluding the first $20 of
the $50 received ($30 remaining) and then reducing the SSI payment by
that amount--a $30 reduction against the original payment of $914.
Income that affects the monthly benefit amount can be provided in
cash or in-kind. Generally, we assess in-kind items at their current
market value \6\ under the presumption that they can be sold or
otherwise converted to meet expenses. However, we treat the actual
provision of in-kind contributions of food or shelter to an applicant
or recipient differently than any other type of in-kind item.
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\6\ Current market value (CMV) means the price of an item on the
open market in your locality (20 CFR 416.1101). We generally
determine that the CMV of food or shelter is equal to the amount a
vendor would charge for it.
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Specifically, when food,\7\ shelter, or both are provided to an SSI
applicant or recipient (e.g., someone pays for rent, mortgage, food, or
utilities), we consider it ``in-kind support and maintenance''
(ISM).\8\ For example, if an applicant or recipient lives with his
brother and does not pay rent, we would consider the shelter that his
brother provides as ISM. Similarly, if an applicant or recipient lives
with a friend and consumes the food in her friend's home but does not
contribute toward the food or rent, we consider the food and shelter
that the friend provides as ISM. As another example, if an applicant or
recipient lives alone but her parents bring her groceries each month
and pay her utility bills, we consider her parents' help as ISM.
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\7\ We use the term ``food'' as commonly defined (e.g., it
includes items like groceries and meals purchased from a
restaurant).
\8\ Cash provided to purchase food is not considered as ISM. It
is considered cash.
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In these circumstances, due to the complexity of determining the
precise value of ISM and how these forms of support impact overall
household operating expenses for a given individual, we typically
reduce the SSI benefit by approximately one-third.\9\ We discuss the
specific means of doing so in the next section.
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\9\ The SSI program included the one-third reduction provision
in the statute to prevent us from having to determine the actual
value of room and board when a recipient lives with a friend or
relative. For more information, see Balkus, Richard; Sears, James;
Wilschke, Susan; and Wixon, Bernard. Simplifying the Supplemental
Security Income Program: Options for Eliminating the Counting of In-
kind Support and Maintenance. Social Security Bulletin, vol. 68, no.
4, 2008, <a href="http://www.ssa.gov/policy/docs/ssb/v68n4/v68n4p15.html">www.ssa.gov/policy/docs/ssb/v68n4/v68n4p15.html</a>.
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Because ISM requires that applicants or recipients receive food,
shelter, or both, by definition, ISM does not apply if applicants or
recipients live alone and pay for their own food and shelter, or if
they live with other people and pay their pro rata share of the food
and shelter expenses.\10\ Further, ISM does not apply when applicants
or recipients live only with a spouse and minor children, and nobody
outside the household pays for their food and shelter, regardless of
whether the spouse or minor child provides food or shelter.\11\
Additional circumstances are discussed further in our regulations.\12\
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\10\ As a general principle, if SSI recipients do not contribute
their pro-rata share of household operating expenses, but they do
contribute an amount within $20 of their pro rata share of household
operating expenses, we treat the situation as if the recipients pay
their pro-rata share under our tolerance policy, and do not reduce
benefits because of ISM.
\11\ See 20 CFR 416.1148.
\12\ See 20 CFR 416.1142 through 416.1148.
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Like other forms of income, ISM can reduce the amount of SSI
benefits. When ISM applies, we determine its value using one of two
rules: (1) the Value of the One-Third Reduction (VTR) rule or (2) the
Presumed Maximum Value (PMV) rule.\13\
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\13\ See 20 CFR 416.1130, 416.1131, and 416.1140.
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The VTR Rule
The VTR rule applies when an applicant or recipient \14\ lives
throughout a month in another person's household and receives both food
and shelter from others living in that household.\15\
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\14\ We refer to ``applicant or recipient'' here and throughout
the NPRM when we mean ``applicant, recipient, or couple'' for ease
of reference, except where reference to the couple is specifically
relevant.
\15\ See 20 CFR 416.1132 for how we define living in another
person's household. To clarify, we note that under current rules, we
apply the VTR rule when an applicant or recipient lives in another
person's household throughout a month and all the food and shelter
expenses are paid in part by others living inside the household and
part from outside. See also Program Operations Manual System (POMS)
SI 00835.200.
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Example: Joe lives in his cousin's house and consumes the food in
his cousin's house. He does not contribute toward the food or rent. We
would assess the ISM Joe receives under the VTR rule because he lives
in another person's household and receives food and shelter from
someone in that household.\16\
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\16\ SSI applicants and recipients are responsible for reporting
changes to their living arrangements as they occur to ensure an
accurate calculation of their monthly benefit amount. Recipients are
informed of these reporting responsibilities during their initial
claim, pre-effectuation, and redetermination. This means applicants
and recipients are responsible for reporting many factors related to
their benefits, including changes to food expenses, which may
fluctuate from month to month. See 20 CFR 416.701 through 416.714
for reporting responsibilities.
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[[Page 9781]]
Under the VTR rule, we reduce by one-third the applicable FBR.\17\
Because the FBR for 2023 is $914 for an individual and $1,371 for an
eligible individual with an eligible spouse, when we apply the VTR rule
in 2023, we reduce SSI benefits by $304.66 ($914 x \1/3\) for
individuals and $457 ($1,371 x \1/3\) for an eligible individual with
an eligible spouse.\18\ This means the maximum this individual could
receive in SSI benefits for that month is $609.34. This amount is
calculated and applied before we look at certain other factors, such as
earned income, which could further reduce the benefit amount.
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\17\ The one-third reduction is established by statute. See
section 1612(a)(2)(A) of Social Security Act (Act) (42 U.S.C.
1382a(a)(2)(A)). Accordingly, we are not proposing changes to the
calculation of benefits under the VTR rule.
\18\ See 20 CFR 416.1147 through 416.1149 for special
circumstances.
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The PMV Rule
The PMV rule applies when an applicant or recipient receives ISM,
but the VTR rule does not apply. This means we apply the PMV rule when
an applicant or recipient receives ISM but does not receive both food
and shelter from the household in which the applicant or recipient
lives.\19\ In other words, the PMV rule would apply when applicants or
recipients live in their own household, but someone helps them with
food, shelter, or both; they live in someone else's household, but only
receive food or shelter (not both) from the household in which they
live; \20\ or they live in a non-medical institution as described in 20
CFR 416.1141(c).
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\19\ Currently, when deciding whether to apply the PMV or VTR
rule, we consider that an applicant or recipient is not subject to
the VTR rule when the applicant or recipient (or at least one member
of an eligible couple) designates part or all of his or her
contribution toward household operating expenses for food or shelter
and the contribution equals or exceeds the pro rata share of
household operating expenses for food or shelter. This is because
the applicant or recipient is not receiving both food and shelter
from the household in which he or she resides. In other words, we
evaluate ISM under the PMV rule when applicants or recipients
contribute their share of food or shelter to their household
operating expenses. See 20 CFR 416.1130 through 416.1141.
\20\ Unlike the VTR rule, which as previously explained derives
the one-third reduction explicitly from section 1612(a)(2)(A) of the
Act, we established the PMV rule through our rulemaking authority.
The PMV rule enables us to efficiently reduce benefits when ISM is
involved instead of having to attempt to value the ISM, but also
allows individuals to rebut and use a real valuation of the ISM if
they believe it would be beneficial for their claim.
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Example: Lola lives with her minor daughter in an apartment. Lola's
mother brings them groceries every week and pays two-thirds of Lola's
rent. Although Lola receives assistance with both food and shelter, we
assess the ISM Lola receives under the PMV rule, because she lives in
her own household.
Example: Michael lives with his sister in his sister's apartment.
He does not pay rent but pays for his own food.\21\ He has special
dietary restrictions and does not consume any of the household's food.
Though he lives in another person's household, we would assess the ISM
Michael receives under the PMV rule, because he does not receive both
food and shelter from that household (he only receives shelter).
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\21\ If applicable, under our current policies, we ask
applicants or recipients if their contributions are allocated for
food or shelter. When we ask if they are earmarking their
contribution to either food or shelter and they say, ``no,'' we look
at the contribution to determine if they meet their pro rata share
of all expenses listed on the Household Expenses and Contributions
page within the SSI Claims System.
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Example: John, an eligible individual, leaves his permanent
residence and enters a jail on March 15. He is released on May 6 to his
home where he has rental liability and pays for all of his food and
shelter. No ISM is charged in March for the period spent in jail
because, as of the first of the month, he was in his permanent
residence and he was not incarcerated throughout the month. In April,
John is considered ineligible for a benefit payment due to
incarceration for a full month. However, upon release, his benefits are
reinstated, and John is charged ISM under the PMV rule for the food and
shelter received while in jail from May 1 through May 6. He is not
charged ISM under the VTR rule because he did not receive food and
shelter throughout a month.
Under the PMV rule, any food or shelter received is presumed to be
worth a set maximum value, unless the applicant or recipient rebuts
this presumption. The set maximum value is one-third of the FBR, plus
the amount of the general income exclusion, which is currently $20.\22\
Therefore, when we use the set maximum value under the PMV rule, we
reduce SSI benefits by $324.66 (one-third of the current FBR of $914
($304.66), plus the general income exclusion of $20) for individuals
and $477 (one-third of the current FBR of $1,371 ($457), plus the
general income exclusion of $20) for couples. Applicants or recipients
can rebut the presumption that the food or shelter is worth the set
maximum value. If applicants or recipients successfully rebut that
presumption, we reduce their benefits by a smaller amount or not at
all.\23\ Note that the $20 general income exclusion does not apply when
we use the VTR rule.\24\
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\22\ See Sec. 416.1124(c)(12).
\23\ 20 CFR 416.1140(2)(ii).
\24\ See Sec. 416.1124(c)(12).
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To rebut the presumption that the food or shelter provided is worth
the maximum value, the applicant or recipient, or the applicant's or
recipient's representative payee, must provide evidence showing that
either: (1) the current market value of any food or shelter received,
minus any payment that someone makes for them, is less than the PMV; or
(2) the actual amount someone else pays for the applicant's or
recipient's food or shelter is less than the PMV. The applicant,
recipient or representative payee has 30 days to submit evidence of a
lower amount (e.g., a payment receipt, a bill with a lower amount, a
bank payment). If the evidence is not provided, we calculate the
applicant's or recipient's ISM using the set maximum value.
When applying the PMV rule, we consider whether ISM is provided by
someone inside the household, outside the household, or both; the
number of people in the household; and whether the applicant or
recipient is unmarried or part of an eligible couple.\25\ ISM
calculations under the PMV rule account for these factors to determine
an applicant's or recipient's pro rata share of the total household
operating expenses.\26\ Once we have determined the pro rata share of
the household operating expenses, we then consider the applicant's or
recipient's contribution toward those expenses. The difference between
the applicant's or recipient's share of the expenses and the
applicant's or recipient's contribution toward those expenses is the
amount by which we reduce the
[[Page 9782]]
applicant's or recipient's benefits for ISM (up to the applicable
limit).
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\25\ For example, if the applicant or recipient is part of an
eligible couple, we follow the same steps as we would to compute an
individual's ISM amount using the PMV rule except we double the pro
rata share of expenses (to account for two people), and we subtract
the couple's combined contribution (instead of the individual's
contribution) toward the household operating expenses.
\26\ Household operating expenses are the household's total
monthly expenditures for food, rent, mortgage, property taxes,
heating fuel, gas, electricity, water, sewerage, and garbage
collection service. (20 CFR 416.1133). Under the proposed policy,
food would be omitted from this calculation. Note that this term is
distinct from certain uses of ``household expenses'' in other
aspects of the SSI program, such as the monthly household expenses
information collected on the SSA-632 (Request for Waiver of
Overpayment Recovery).
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Example: Larry lives with his brother and sister-in-law in their
household. If he receives both food and shelter from his brother and
sister-in-law, we would assess his ISM under the VTR rule, reducing his
benefits by $304.66 each month. However, in this example, he provides
evidence that he pays for his share of shelter expenses, so we assess
his ISM under the PMV rule (because he is not receiving both food and
shelter from the household in which he lives). He tells us that he
consumes the household's food, but that he does not contribute toward
the food expenses. Upon prompting from our technician about whether he
wished to rebut the presumption of the maximum value, Larry rebuts the
presumption that the food or shelter provided is worth the maximum
value and demonstrates that the household's food expenses are $500
monthly.\27\ We consider Larry's share of the food expenses to be
$166.66 (the total household food expenses divided among three people),
and we reduce Larry's benefits by this amount. For comparison, the set
maximum value under the PMV rule would have reduced his benefits by
$324.66, and the VTR rule would have reduced his benefits by $304.66.
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\27\ When explaining PMV and the process of rebutting to an
applicant or recipient, we do not provide a specific script to our
technicians (see SI 00835.320 B.2 for the guidance we provide
technicians.) In summary, technicians explain to applicants or
recipients: (1) that they are receiving ISM, (2) what form of ISM we
are charging and the value, and (3) that they have the right to
rebut the PMV. While we do not require technicians to use the term
``rebut,'' it has been used historically in our written
communications with the applicant or recipient, including the
``Rebuttal Rights Notification'' letter that is sent after the
conversation.
Procedurally, when applicants or recipients choose to rebut the
PMV, the technician explains to them that they have 30 days to
provide evidence showing that the actual value is less than the PMV.
In some cases, an applicant or recipient may have evidence in-hand
to present to us, the technician is able to verify the household
expenses, and the rebuttal is easily processed. Otherwise, the
applicant or recipient is responsible for providing us the necessary
evidence within 30 days. However, if the individual indicates a need
for assistance, the technician is responsible for assisting to
obtain the necessary evidence, per policy.
We have found that most applicants and recipients who state they
wish to rebut the PMV follow up within 30 days with the necessary
documentation. Some applicants and recipients state they want to
rebut, but don't provide the documentation within 30 days, and so
the PMV generally is applied.
We do not have any indication that applicants and recipients for
whom the PMV applies have any confusion surrounding the term
``rebuttal'' or face procedural challenges or undue burdens with
understanding or providing the necessary evidence to successfully
rebut the PMV. We have also not historically received any feedback
regarding concerns with how this information is presented in the
``Rebuttal Rights Notification'' letter that is typically sent as
follow-up after the conversation between the technician and the
applicant or recipient. However, as noted in the section of this
NPRM entitled ``Solicitation for Public Comment,'' we are
specifically seeking comment regarding the experience of
understanding and rebutting the PMV, including any feedback related
to the clarity of the concept of ``rebuttal,'' suggestions for
improving the ``Rebuttal Rights Notification'' letter (which we have
documented), and other potential regulatory or programmatic
improvements to simplify the rebuttal process. We note that while we
may not be able to implement suggestions as an element of the final
rule, feedback may still help inform future decisions regarding the
rebuttal process.
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As an example, we have provided the steps we use to calculate the
value of ISM for an unmarried applicant or recipient, who has rental
liability, when the ISM is provided by someone within the same
household:
Step 1: Divide the total household operating expenses (including
food expenses) by the number of household members. The result is the
applicant's or recipient's pro rata share.
Step 2: Subtract the applicant's or recipient's contribution to the
household operating expenses (including food expenses) from the
applicant's or recipient's pro rata share. The result is the actual
value of ISM. (The actual value cannot be less than $0.)
Step 3: Compare the actual value of the ISM to the set maximum
value under the PMV rule (currently $324.66). Select the lesser of the
two values. Reduce the FBR by this amount.\28\
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\28\ If there are other sources of ISM, there are additional
calculations. For more examples of ISM computations, please see the
section titled, ``HOW DOES MY LIVING ARRANGEMENT AFFECT MY SSI
BENEFIT AMOUNT?'' available at <a href="https://www.ssa.gov/ssi/text-living-ussi.htm">https://www.ssa.gov/ssi/text-living-ussi.htm</a>.
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When deciding whether to apply the PMV or VTR rule, we also follow
the general principle that an applicant or recipient is not subject to
the VTR rule when he or she (or at least one member of an eligible
couple) designates part or all of his or her contribution toward
household operating expenses for food or shelter, and the contribution
equals or exceeds the pro rata share of household operating expenses
for food or shelter. This is because such applicants or recipients are
not receiving both food and shelter from the household in which they
reside. In other words, we evaluate ISM under the PMV rule when
applicants or recipients contribute their pro rata share of food or
shelter to their household operating expenses.\29\
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\29\ See POMS SI 00835.170.
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In January 2022, there were approximately 7,341,000 individuals
receiving SSI. Based on our internal data, we estimate that we reduced
the payments of 793,000 SSI recipients because of ISM in the same
month. Of these 793,000, we estimate that we reduced payments for
358,000 SSI recipients under the VTR rule and that we reduced payments
for 434,000 recipients under the PMV rule.\30\ Of those assessed under
the PMV rule, we estimate that 207,000 (48%) successfully rebutted the
presumed maximum value (i.e., their payments were reduced less than the
PMV rule's set maximum value). In addition, we estimate that the mean
ISM amount among all recipients evaluated under the PMV was $207 and
the mean ISM amount among recipients who successfully rebutted the PMV
was $112. Table 1 summarizes the status of ISM-impacted recipients in
January 2022: \31\
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\30\ See Table 1 of our supplemental document titled, ``Tables
of Administrative Data Related to In-Kind Support and Maintenance
(ISM),'' available at <a href="http://www.regulations.gov">www.regulations.gov</a> as a supporting document
for Docket SSA-2021-0014.
\31\ The FBR for 2022 was $841 for an individual and $1,261 for
an eligible individual with an eligible spouse. See 86 FR 58715,
58717 (2021). When we applied the VTR rule in 2022, we reduced SSI
benefits by $280.33 ($841 x \1/3\) for individuals and $420.33
($1,261 x \1/3\) for an eligible individual with an eligible spouse.
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PMV--lower than
VTR PMV--maximum the maximum
amount applies amount
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Affected Recipients (count)................................. 358,000 227,000 207,000
Affected Recipients (as percentage of all ISM recipients)... 45% 29% 26%
Mean ISM Amount............................................. $280.33 \32\ $300.33 $112
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[[Page 9783]]
Proposed Change
We propose to update our regulations to exclude food from the
calculation of ISM. We also propose to add conforming language to our
definition of income explaining that food would be an ISM exception.
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\32\ After the $20 general income exclusion is applied, if there
is no other income, the benefit reduction in 2022 was $280.33.
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Accordingly, we would no longer consider food expenses in our ISM
calculations. Instead, we would consider only shelter expenses (i.e.,
rent, mortgage payments, real property taxes, heating fuel, gas,
electricity, water, sewerage, and garbage collection services). We
would continue to use the VTR or PMV rule to determine the value of the
ISM provided. We would apply the VTR rule when applicants or recipients
live in another person's household throughout a month and their shelter
expenses (rent or mortgage, and utilities) are paid by others living
inside the household,\33\ and when household operating expenses are
paid by a combination of others living inside the household and others
living outside the household. Alternatively, we would apply the PMV
rule when applicants or recipients live in their own households, and
someone outside the home pays for their shelter costs.\34\
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\33\ Example: If an applicant or recipient lives with a friend
and does not pay for his share of the rent or mortgage and
utilities, we would apply the VTR rule.
\34\ Example: If an applicant or recipient lives by herself, but
her sister pays her utility bills, we would use the PMV rule to
evaluate the help provided by the applicant's or recipient's sister.
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Our proposal to remove food from ISM calculations could eliminate
the benefit reduction that we currently apply to some recipients. This
would occur in some cases in which an applicant or recipient allocated
a higher proportion of their contribution toward shelter expenses. It
could also occur in some cases if an applicant or recipient contributed
to their household operating expenses generally. Further, in some
circumstances, recipients may choose to reallocate their funds to
adjust the amount they contribute toward shelter expenses.
Example: Stan lives in an apartment with a friend, and Stan has
rental liability, which means Stan is liable to a landlord for rent.
Currently, his household operating expenses are $1,400 monthly ($1,000
rent and utilities, and $400 food). Stan's pro rata share of the
household operating expenses is $700. Stan contributes $500,
specifically for rent. He does not contribute to the household's food
expenses, though he consumes the household's food. In this example,
during an interview with our technician, the technician informed Stan
that they would apply the maximum value under the PMV rule and asked
Stan if he intended to rebut the maximum value. Stan rebutted the
amount of shelter ISM that he receives, indicating it is less than the
maximum value. Under the current rule, we would apply the PMV rule and
reduce Stan's monthly SSI benefits by $200 (the difference between his
pro rata share and his contribution). Under the proposed rule, we would
exclude food expenses, bringing the total household operating expenses
to $1,000. This would reduce Stan's pro rata share to $500. If he still
contributed $500 monthly to his household operating expenses, he would
meet his pro rata share and we would no longer reduce his benefits
because of ISM.
Example: Jane lives in an apartment with her sister, and Jane has
rental liability. Currently, their household operating expenses are
$1,200 monthly ($900 rent and utilities, and $300 food). Jane's pro
rata share of the household operating expenses is $600. Jane
contributes $500. Currently, we would apply the PMV rule and reduce
Jane's monthly SSI benefit by $100 (the difference between her pro rata
share and her actual contribution). Under the proposed rule, we would
exclude food expenses, bringing the total household operating expenses
to $900. This would reduce Jane's pro rata share to $450. If she still
contributed $500 monthly to her household operating expenses, we would
no longer reduce her benefits because of ISM.
We expect that some other applicants or recipients--those who do
not contribute their full pro rata share even after food expenses would
be omitted--may experience a smaller benefit reduction under the
proposed policy. This could occur if a higher proportion of an
applicant's or recipient's contribution is allotted toward shelter
expenses, or if applicants or recipients contribute to their household
operating expenses generally and they continue to contribute the same
amount toward their household operating expenses even after, as
proposed, food is no longer included in household operating expenses.
When applicants or recipients pay a larger share of their expenses,
they receive less ISM, meaning their benefits may be reduced less.
Example: Mark owns his home, and his parents live with him.
Currently, the household operating expenses are $2,050 monthly ($1,600
for mortgage and utilities and $450 for food). Mark's pro rata share of
the household operating expenses would be $683.33. Mark contributes
$500. Currently, we would apply the PMV rule and reduce Mark's SSI
benefit by $183.33 (the difference between his pro rata share and his
actual contribution). Under the proposed rule, we would exclude food
expenses, bringing the total household operating expenses down to
$1,600. This would reduce Mark's pro rata share to $533.33. If he still
contributed $500 monthly to his household operating expenses, we would
reduce his benefits by $33.33 for ISM.
Though we propose to eliminate food expenses from our ISM
calculations, we would still consider food expenses for a narrow
purpose: to determine whether to use the VTR rule or the PMV rule in
certain circumstances. Food expenses would not be included in the
actual calculation. We would continue to ask applicants and recipients
certain questions about food. These questions are: (1) do you buy food
separately from the household? (2) do you eat all meals out? and (3) do
you receive Supplemental Nutrition Assistance Program (SNAP) benefits?
If applicants or recipients answer ``yes'' to any of these questions,
even if the applicant or recipient lives in another person's household,
we would evaluate their ISM using the PMV rule to calculate ISM, and we
propose to add this to our regulations.
Summary of VTR Rule and PMV Rule Under Current and Proposed Regulations
------------------------------------------------------------------------
ISM rule Current regulation Proposed regulation
------------------------------------------------------------------------
VTR Rule.................... When the Rule When the Rule Would
Applies Apply
We apply when We would apply
applicants and when applicants
recipients: and recipients:
<bullet> live <bullet> live
throughout a throughout a
month in month in
another another
person's person's
household; and. household; and
[[Page 9784]]
<bullet> <bullet>
receive both receive
food and shelter from
shelter from others living
others living in the same
in the same household.
household.
Amount We Reduce Amount We Would
Benefits Reduce Benefits
We reduce by one- We would reduce
third of the by one-third of
applicable FBR. the applicable
FBR (no change).
PMV Rule.................... When the Rule When the Rule Would
Applies Apply
We apply when the We would apply
applicant or when the
recipient applicant or
receives food or recipient
shelter but does receives shelter
not meet the but does not
conditions of meet the
the VTR rule. conditions of
the VTR rule (no
change).
Amount We Reduce Amount We Would
Benefits Reduce Benefits
If applicants or If applicants or
recipients recipients
successfully successfully
rebut the rebut the
presumption that presumption that
the food or the shelter
shelter provided provided to them
to them is worth is worth a set
a set maximum maximum value,
value, we we would
determine the determine the
actual value of actual value of
the ISM by the ISM by
subtracting the subtracting the
applicants' or applicants' or
recipients' recipients'
contribution contribution
from their pro from their pro
rata share of rata share of
the total the total
household household
operating operating
expenses expenses
(including food (omitting food
expenses). expenses).
We reduce the We would reduce
applicable FBR by the applicable
the actual value. FBR by the
actual value.
------------------------------------------------------------------------
In addition, we propose to update Sec. 416.1131 with clarifying
language. Currently, our regulations state that for the VTR rule to
apply, an applicant or recipient must receive both food and shelter
from the person in whose household they are living. In practice, when
determining whether to apply the VTR rule, we consider others in the
household as well. We calculate the total household operating expenses
and divide by the number of household members to calculate the pro rata
share. If the applicant or recipient is paying his or her pro rata
share, he or she would be eligible for a full benefit amount, before we
take into consideration other factors (e.g., earned or unearned income)
unrelated to the ISM policy that might impact the actual benefit amount
for which they are eligible. We would clarify this longstanding
practice in our regulations.
Finally, we note that this proposal would not change our current
rules that cover wages paid in kind (20 CFR 416.1110(a)(3)). Under
section 1612(a)(1)(A) of the Act, we are required to consider food that
an individual receives from an employer as wages. 20 CFR 416.1110(a)(3)
will remain unchanged to stay consistent with the Act.
Codifying Counting Income Constructively
Independent from removing food from the ISM calculation, we also
propose to clarify that income may be received ``constructively.''
Income is received constructively, unless there are significant
restrictions on the applicant's or recipient's ability to receive it,
if it is under an applicant's or recipient's control or an applicant or
recipient can use it despite not actually receiving it. Constructive
receipt of income is part of our current policy and this change would
make it clearer.
Justification for Change
The basic purpose of SSI is to assure a minimum level of income to
people who are aged, blind, or disabled and who have limited income and
resources. As discussed above, we evaluate many types of income when
determining whether someone is eligible under the program. We have
historically included in-kind receipt of food in our consideration
because food assistance helps people meet their basic needs. However,
the complexities of our current food ISM policies may outweigh their
utility. The Social Security Advisory Board stated in 2015 that ``the
complexity of ISM rules contributes to the number of hours that SSA
must spend to prevent under and overpayments--and diverts resources
from other program integrity activities . . . .'' The Board also noted
that ``collecting and verifying information to determine whether there
is in-kind support at the application stage is time-consuming and
having to continue to make that assessment is burdensome, both for the
agency and the SSI recipient who must maintain constant communication
with the agency.'' \35\ Moreover, the current ISM policy may insert
barriers into what would otherwise be an innocuous receipt of a meal or
food from an individual's friends or family. The current requirements
for reporting in-kind food receipts could discourage SSI applicants and
recipients from receiving an often informal but important form of help.
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\35\ See the Social Security Advisory Board Statement on the
Supplemental Security Income Program, ``The Complexity of In-Kind
Support and Maintenance.'' 2015, pgs, 4 and 6, https://www.ssab.gov/
wp-content/uploads/2021/03/2015_-SSI_In-
Kind_SupportMaintenance.pdf#:~:text=The%20Complexity%20of%20In-
Kind%20Support%20and%20Maintenance%20Public,annual%20report%20to%20th
e%20President%20and%20the%20Congress.
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Accordingly, we propose to make the changes outlined for two
reasons: to simplify our policy (which will allow for improved
application, adjudication, compliance, and comprehension of our rules)
and to promote equity by not disadvantaging an already vulnerable
population when they receive food assistance. We expect that the
proposed rules would provide increased financial security to impacted
beneficiaries; provide consistent treatment of food support regardless
of source; reduce unduly burdensome reporting requirements; and
facilitate improved food security among certain beneficiaries.
Proposal Would Simplify the Policy
The proposed change would simplify SSI policy in several ways.
Removing a variable from our ISM calculations would: (1) reduce the
amount of program rules an applicant or recipient needs to understand;
(2) reduce the amount of information that applicants or recipients must
report, both during the application process and in post-award
reporting; \36\ (3) simplify and shorten processing; and (4) lead to
fewer benefit recalculations (and therefore, for
[[Page 9785]]
example, possibly fewer ISM-related overpayments).
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\36\ Although we refer to the applicant or recipient for ease of
reference, if the applicant or recipient has a representative payee,
the representative payee would be responsible for reporting the
information discussed in this section.
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The proposed rule follows a change we made to our program in 2005,
when we published a final rule removing clothing from the definition of
ISM,\37\ which simplified our policies and improved our work
efficiency. Like the 2005 simplification, this proposal would simplify
the ISM calculation with respect to a factor for which it is difficult
to obtain accurate, verifiable estimates. Like clothing, food is an
expense that fluctuates from month to month and may be provided from
different sources at different intervals. We anticipate these
simplifications will help make our program more equitable for
applicants and recipients. We discuss the ways in which this policy is
more equitable in the section titled, ``Proposal Would Promote
Equity.''
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\37\ 70 FR 6340 (2005).
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1. Reduce the Amount of Program Rules an Applicant or Recipient Needs
To Understand
The ISM policy has been cited as one of the most complicated
aspects of the SSI program, and applicants and recipients and their
representatives have expressed difficulty in understanding and
complying with our current ISM rules. As explained by Nicholas (2014),
``a substantial portion of the ISM literature criticizes ISM policies
for being inequitable, complex, intrusive, and burdensome.'' \38\
Complicated rules can lead to otherwise-eligible individuals' forgoing
applying for benefits or taking on unnecessary burden while navigating
application and award processes. We expect that reducing the number of
variables may help applicants and recipients and their representatives
understand the calculations more easily, which may reduce burden
associated with both applying for benefits and maintaining eligibility.
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\38\ See Nicholas, Joyce. ``Source, Form, and Amount of In-kind
Support and Maintenance Received by Supplemental Security Income
Applicants and Recipients.'' Social Security Bulletin, vol. 74, no.
3, 2014, <a href="https://www.ssa.gov/policy/docs/ssb/v74n3/v74n3p39.html">https://www.ssa.gov/policy/docs/ssb/v74n3/v74n3p39.html</a>.
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2. Reduce the Amount of Information That Applicants or Recipients Must
Report
Under our current regulations, we require applicants or recipients
to provide detailed information about their household composition,
their household operating expenses, and their contributions toward
household operating expenses. We collect this information when
applicants apply for benefits and when any of this information changes.
The proposed changes would lessen the reporting burden on applicants or
recipients by reducing the amount of information applicants or
recipients must report. They would no longer need to inform us of their
households' food expenses, their contributions to their households'
food expenses, or changes to either, except under very limited
circumstances. Under the proposal, these circumstances would be limited
to changes that could affect whether their ISM is evaluated under the
VTR or PMV rule. In other words, applicants or recipients would still
inform us if they live in another person's household and if they answer
``yes'' to any of the following questions: (1) do you buy food
separately from the household? (2) do you eat all meals out? and (3) do
you receive SNAP benefits?
First, individuals applying for SSI may receive in-kind food
support specifically because they lack any reliable source of income
and are reliant on non-cash support from friends and family. By
reporting this in-kind support on their application, they may receive a
reduced benefit due to the ISM policy. However, the receipt of SSI may
grant recipients the financial means to start obtaining their own food,
and the change in how they obtain their food would need to be reported.
The quick succession of having to provide newly updated income
information to us imposes reporting and adjudication costs on the
recipient and the agency, respectively. Moreover, if the recipient
fails to report the reduction in in-kind food support, they may fail to
receive the full benefit for which they were eligible. By no longer
collecting this information during the application, we also reduce the
need for newly awarded beneficiaries to have to provide an updated
report.\39\
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\39\ In 2007, we began redeveloping VTR cases three months after
the first payment. During this redevelopment period, the technician
determines if recipients should be assessed under the PMV rule based
on household contribution or based on a relocation into their
household. The data showed that the number of people who
transitioned from VTR to PMV within a two-month period was low. For
example, of those in pay status in December 2020, only 465 made a
transition from VTR to PMV in January or February of 2021. For
comparison, we also looked at those in pay in December 2021. Of
those in pay status in December 2021, only 285 made the transition
in January or February of 2022. We do not anticipate that this
proposed rule, if finalized, would change our policy of contacting a
recipient, who is receiving ISM under the VTR rule, and redeveloping
the claimant's case three months after the first payment.
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Second, current requirements to report detailed information about
household composition, household operating expenses, and contributions
toward household operating expenses may present challenges for
applicants or recipients. It may be difficult for applicants or
recipients to provide accurate estimates of their food expenses and
contributions. Actual food purchases may involve varying intervals and
multiple household members, vendors, and forms of payment. Further, the
applicant's or recipient's estimates are tied to the price of food,
which is variable. In fact, one popular measure of inflation excludes
the food sector because it is a price category considered excessively
volatile.\40\ Changing food prices means that applicants' or
recipients' reported food expenses may not accurately reflect their
future food expenses. When recipients report food expenses that do not
reflect their actual food expenses, they must immediately report the
discrepancy to ensure we calculate their benefit amount correctly.
Otherwise, they risk an overpayment or underpayment.\41\
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\40\ See ``The trouble with food and energy.'' The FRED Blog, 29
Feb. 2016, <a href="http://fredblog.stlouisfed.org/2016/02/the-trouble-with-food-and-energy/">fredblog.stlouisfed.org/2016/02/the-trouble-with-food-and-energy/</a>.
\41\ Applicants and recipients are responsible for reporting
many factors related to their benefits. While reporting food is just
one of many, our proposal would simplify reporting by removing one
of the frequently fluctuating variables applicants and recipients
must report.
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Removing food from our ISM calculations would also eliminate
challenges applicants and recipients experience to verify food expenses
and their contributions toward those expenses. To verify food expenses,
typically another household member must attest to the estimates
provided.\42\ In most cases, there is no other method of expense
verification. In contrast, for shelter costs, we can usually obtain
verification through an applicant's or recipient's rental or mortgage
agreement, tax records, and utility bills. Complying with these
requirements can impose burdens on applicants and recipients.
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\42\ When SSI applicants or recipients provide information about
household expenses, our technicians contact the homeowner or another
household member who is knowledgeable of the household expenses for
verification. The contact information for the other knowledgeable
household member is provided to us by the applicant or recipient and
is also located on the Household Expenses and Contributions page
within the SSI Claims System.
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3. Simplify and Shorten Processing
As Balkus et al., noted in a 2008 analysis, we must make a
determination concerning ISM receipt for most SSI recipients, but only
about 9 percent of SSI recipients have their benefits reduced due to
ISM. Further, they noted that ``a determination may involve a detailed
accounting of household expenses and the individual's
[[Page 9786]]
contribution, to establish whether the individual pays his or her pro
rata share of expenses. In addition to initial claims, this
determination must be repeated if there is any change in household
composition or expenses that might affect the amount of the SSI
benefit.'' \43\
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\43\ ISM rules have long been identified as a source of
administrative complexity. For more information about administrative
complexity related to ISM, see Balkus, Richard; Sears, James;
Wilschke, Susan; and Wixon, Bernard. ``Simplifying the Supplemental
Security Income Program: Options for Eliminating the Counting of In-
kind Support and Maintenance.'' Social Security Bulletin, vol. 68,
no. 4, 2008, <a href="http://www.ssa.gov/policy/docs/ssb/v68n4/v68n4p15.html">www.ssa.gov/policy/docs/ssb/v68n4/v68n4p15.html</a>.
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The program complexities associated with administering the ISM
policy also fall on our personnel who are responsible for reviewing and
adjudicating claims, as well as other front-line personnel responsible
for communicating the policy to applicants and recipients. By
eliminating food from the ISM calculation and thus simplifying the ISM
policy, our personnel would save time associated with training on the
current ISM policy and with adjudicating and reviewing claims and post-
award reporting changes in in-kind food support when compared to the
current ISM policy.
4. Lead to Fewer Benefit Recalculations and Fewer Improper Payments
When an SSI recipient reports changes related to his or her food
expenses or contributions, we must recalculate the recipient's benefit
amount based on the updated information.\44\ If we eliminate food from
our ISM calculations, recipients will no longer need to report these
changes, nor would they be subject to recalculations for these changes.
This will save beneficiaries time and reduce the required reporting
frequency.
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\44\ Under the proposed rules, applicants or recipients would
need to contact us if their response to a food question changes
because this could affect whether their ISM is evaluated under the
VTR or PMV rule. In other words, applicants or recipients would
still contact us if they live in another person's household and
their answer to any of the following questions changes: (1) do you
buy food separately from the household? (2) do you eat all meals
out? and (3) do you receive SNAP benefits? See 20 CFR 416.701
through 416.714 for reporting responsibilities.
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As an example, this could lead to fewer situations in which we
determine a beneficiary has been overpaid due to unreported ISM.
Similarly, if an overpayment still occurred, it could be lower since we
would no longer consider food as part of the ISM calculation. We have
noted that the ISM reporting requirement is challenging for
beneficiaries to comply with. As Nicholas summarized, ``GAO and SSA's
Office of the Inspector General have repeatedly declared ISM policy as
one of the leading causes of SSI improper payments.'' \45\ For example,
in Fiscal Year (FY) 2018, ISM overpayments totaled $356 million.\46\
Removing food from the ISM calculation may help reduce overpayments,
which can be time- and resource-consuming for both recipients and the
agency. We expect simplifying the ISM policy will enhance compliance
with SSI rules.
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\45\ See Nicholas, Joyce. ``Source, Form, and Amount of In-kind
Support and Maintenance Received by Supplemental Security Income
Applicants and Recipients.'' Social Security Bulletin, vol. 74, no.
3, 2014, <a href="https://www.ssa.gov/policy/docs/ssb/v74n3/v74n3p39.html">https://www.ssa.gov/policy/docs/ssb/v74n3/v74n3p39.html</a>.
\46\ See pages 188 and 195-196 of our FY 2019 Agency Financial
Report available at <a href="https://best.ssa.gov/finance/2019/Payment%20Integrity.pdf">https://best.ssa.gov/finance/2019/Payment%20Integrity.pdf</a>. ISM is also a leading cause of
underpayments. For example, ISM underpayments totaled $246 million
in 2018.
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Proposal Would Promote Equity
SSI recipients have low income and resources. Because low-income
people disproportionately encounter barriers across a range of social,
health, and economic outcomes, our goal is to improve their
circumstances, thus improving equity, by removing benefit reductions
for this population. As discussed below, we anticipate the policy may
facilitate increased food security, which could lead to an overall
greater sense of well-being and better health outcomes. As well, the
new process would remove a disincentive for family and friends to
provide food support, and be generally easier, less burdensome, and
potentially less anxiety-provoking. Specifically, this proposed rule
would promote equity by: (1) providing increased financial security to
affected beneficiaries; (2) providing consistent treatment of food
support regardless of source; (3) reducing reporting requirements and
the effects of reporting on applicants and recipients; and (4)
facilitating improved food security among certain beneficiaries.
Removing these obstacles would ultimately promote equity by lessening
the disparity between SSI applicants or recipients and others.
1. Providing Increased Financial Security to Affected Beneficiaries
By design, the SSI program serves people who may be facing barriers
in various aspects of their lives: individuals with low incomes,
including older individuals, families with children, individuals with
disabilities, and people who may have been historically underserved.
This proposal would benefit disabled, blind, and aged persons who are
struggling to meet basic food and shelter expenses, as the 2022 Federal
maximum SSI benefit amount ($10,092/year) is lower than the current
Federal poverty level, which is set at $13,590 for an individual. It
removes barriers to food security for persons affected by persistent
poverty. Individuals receiving SSI are disproportionately likely to
encounter social, economic, and health inequities that are in part
compounded by their, on-average, below-poverty level income.\47\
Removing food from the ISM calculation generally would increase the
income support to recipients who may have reduced benefits due to the
current ISM policy, which in turn generally would provide them
additional financial security.
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\47\ Penalizing in-kind assistance from private sources may
reduce social equity by discouraging social relationships for
vulnerable individuals. For the importance of social relationships
to people with disabilities, see Tough, Hannah; Siegrist, Johannes;
and Fekete; Christine. 2017. ``Social relationships, mental health
and wellbeing in physical disability: a systematic review.'' BMC
Public Health 17 (414).
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This proposal would also remove a possible disincentive for family
and friends to help applicants or recipients obtain food. In a United
States Department of Agriculture (USDA) study of households that
receive SNAP benefits,\48\ researchers found that, among food coping
strategies cited by study participants, a significant minority of the
food-secure SNAP households turn to family networks for assistance.\49\
Our proposed rule would ensure that, when applicants or recipients rely
on networks of family or friends to help obtain the food they need, we
will not reduce their benefits as a result. Under the current PMV rule,
when we consider food provided to applicants or recipients, it is
offset by dollar-for-dollar reductions in the
[[Page 9787]]
applicants' or recipients' benefits, up to the set presumed maximum
value (currently $324.66). Because of this offset, in most cases, the
help from family or friends does not improve the recipient's ability to
meet his or her food needs because this would cause a reduction to the
recipient's SSI benefit amount. This creates undesirable effects. For
one, because food support generally does not prompt ISM if it comes
from charitable or government sources, the current ISM policy could be
seen to favor government or charitable sources of food support over
support from friends and families. Second, the one-for-one offset means
that for SSI applicants and recipients who would otherwise receive food
support below the PMV threshold, there may be no incentive to receive
said support.
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\48\ SNAP is a Federal program that provides nutrition benefits
to low-income individuals and families that are used at stores to
purchase food. Most SSI recipients receive benefits from SNAP (For
example, 62.8 percent of SSI recipients received SNAP in 2013). See
Bailey, Michelle and Hemmeter, Jeffrey. ``Characteristics of
Noninstitutionalized DI an SSI Program Participants, 2013 Update.''
Research and Statistics Note No. 2015-02. Released September 2015.
<a href="https://www.ssa.gov/policy/docs/rsnotes/rsn2015-02.html">https://www.ssa.gov/policy/docs/rsnotes/rsn2015-02.html</a>. The average
monthly SNAP benefit was about $155 per person in 2020. See
Supplemental Nutrition Assistance Program, Aug. 6, 2021, available
at <a href="https://fns-prod.azureedge.net/sites/default/files/resource-files/34SNAPmonthly-8.pdf">https://fns-prod.azureedge.net/sites/default/files/resource-files/34SNAPmonthly-8.pdf</a> <a href="https://fns-prod.azureedge.net/sites/default/files/resource-files/SNAPsummary-11.pdf">https://fns-prod.azureedge.net/sites/default/files/resource-files/SNAPsummary-11.pdf</a>.
\49\ See U.S. Department of Agriculture. SNAP Food Security In-
Depth Interview Study (2013) at <a href="https://fns-prod.azureedge.net/sites/default/files/SNAPFoodSec.pdf">https://fns-prod.azureedge.net/sites/default/files/SNAPFoodSec.pdf</a>. p xiii. While this study
focused on SNAP participants, not specifically SSI recipients
receiving SNAP, there is some overlap. Some households in the study
received SSI. See pg. 7.
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By removing food from ISM calculations, we would remove a
consideration that recipients could view as discouraging establishing
and maintaining these vital forms of familial, social, and community
support that can be a critical, if informal, support structure.
Encouraging these support networks for beneficiaries currently
receiving SSI may also facilitate additional resiliency for individuals
even if they stopped receiving benefits in the future.
Example: Sheila lives alone and normally purchases her own food,
but she is having trouble meeting her monthly food expenses. Her
daughter wants to help her with her food expenses and buys Sheila $100
of groceries each month. Under current regulations, Sheila would
contact us to report the ISM her daughter is providing ($100 of
groceries each month). We would then reduce Sheila's monthly SSI
benefit by $100. Ultimately, Sheila would receive the same amount of
assistance each month because without her daughter's help, Sheila's
benefits would not be reduced by $100. She would receive no net benefit
from receiving $100 in groceries (and would have to spend time
reporting the receipt of groceries).
2. Providing Consistent Treatment of Food Support Regardless of Source
This proposed rule would also allow us to treat food assistance
uniformly, regardless of the source. Under current rules, as explained
above, we apply our ISM rules to determine if we need to reduce
recipients' benefits because of the food assistance they receive from
private sources, like family and friends. However, we do not reduce a
recipient's benefits for the food assistance they receive from public
sources, such as SNAP. In other words, public sources of food
assistance are not counted as ISM under current rules. Therefore,
excluding food from the calculation of ISM would ensure that food
assistance from public and private sources are treated uniformly (i.e.,
both excluded) under ISM rules. Removing this inconsistency would
decrease the complexity of our program.
3. Reducing Reporting Requirements and the Effects of Reporting on
Applicants and Recipients
As previously discussed in our justifications focused on the time-
and cost-savings associated with simplifying the ISM policy, the
challenges associated with understanding and complying with ISM
requirements likely compound existing inequities for SSI recipients.
Manasi Desphande and Yue Li provide a detailed overview of contemporary
research related to how these challenges can disproportionately lead to
underutilization of critical services and programs by those most in
need.\50\ Other behavioral science research has shown that burdens like
the complicated food-support ISM reporting requirements can have
negative effects for individuals already facing scarcity, as is the
case for many SSI recipients.\51\
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\50\ Deshpande, Manasi, & Li, Yue. (2019). Who is screened out?
Application costs and the targeting of disability programs. American
Economic Journal: Economic Policy, 11(4), 213-48.
\51\ Mullainathan, S. & Shafr, E. (2013.) Scarcity: Why having
so little means so much. Henry Holt and Company.
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Relatedly, current ISM policy requires that SSI recipients report
simple acts of charity or support from friends or family, and
beneficiaries may be improperly paid if they fail to report these
events in a timely manner. Because the SSI program may be perceived as
complicated and burdensome, there may be a psychological cost such as
anxiety or stress related to reporting food. This could lead to
individuals' not wanting to apply or failing to comply with the
requirements for maintaining their SSI benefits. By treating the
sharing and provision of food, a common human generosity, as something
that must be reported, it is possible some beneficiaries may experience
frustration, anxiety, or discomfit that in turn may reduce SSI
participation (or may result in current recipients' failing to report
in-kind food support). Questioning individuals about items as personal
as a household's food purchases may be seen as overly intrusive without
achieving a substantial program goal. This proposal has the potential
to make our rules less intrusive and better protect beneficiaries'
privacy and dignity while continuing to meet the requirements of the
program.
5. Facilitating Improved Food Security Among Certain Beneficiaries
This proposal would remove benefit reductions that applicants or
recipients may incur when they receive help obtaining food from family
or friends. By removing benefit reductions, we may remove a barrier to
food security for individuals with low incomes. Food insecurity is
defined as ``limited or uncertain availability of nutritionally
adequate and safe foods, or limited or uncertain ability to acquire
acceptable foods in socially acceptable ways.'' \52\ Food insecurity is
often associated with poor health. For example, after certain risk
factors were controlled, studies found that ``food-insecure children
are at least twice as likely to report being in fair or poor health and
at least 1.4 times more likely to have asthma, compared to food-secure
children; and food-insecure seniors have limitations in activities of
daily living comparable to those of food-secure seniors fourteen years
older.'' \53\ By implementing the policy, we will potentially increase
food security for some SSI recipients, which may alleviate some of the
ill-effects of food insecurity.
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\52\ See ``Measurement.'' USDA Economic Research Service,
<a href="http://www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/measurement.aspx#insecurity">www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/measurement.aspx#insecurity</a>.
\53\ See Gundersen, Craig; Ziliak, James. ``Food Insecurity and
Health Outcomes'' Health Affairs, vol. 34, no. 11, Nov. 2015,
<a href="http://www.healthaffairs.org/doi/full/10.1377/hlthaff.2015.0645">www.healthaffairs.org/doi/full/10.1377/hlthaff.2015.0645</a>. In
addition, ``even short-term food insecurity can have significant
impacts on children's health, including poorer behavioral,
emotional, and nutritional outcomes. Among children, food insecurity
has been linked to increased risk of obesity.'' See Metallinos-
Katsaras, Elizabeth; Must, Aviva; Gorman, Kathleen. ``A longitudinal
study of food insecurity on obesity in preschool children.'' Journal
of the Academy of Nutrition and Dietetics, Dec. 2012,
<a href="http://pubmed.ncbi.nlm.nih.gov/23174682/">pubmed.ncbi.nlm.nih.gov/23174682/</a>, doi: 10.1016/j.jand.2012.08.031.
As another example, a study found that in a national sample of older
adults, there was ``an inverse association between food insecurity
and cognitive function.'' See Frith, Emily; Loprinzi, Paul. ``Food
insecurity and cognitive function in older adults: Brief Report.''
Clinical Nutrition, vol 37, no. 5, pp. 1765-1768, <a href="https://doi.org/10.1016/j.clnu.2017.07.001">https://doi.org/10.1016/j.clnu.2017.07.001</a>.
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Research shows that food insecurity rates are often higher than
average for people facing certain barriers. The USDA's Economic
Research Service published 2019 rates of food insecurity that were more
than two and a half times higher for households with incomes below 185
percent of the poverty threshold than for the national household
average (27.6 percent vs. 10.5
[[Page 9788]]
percent).\54\ Further, a 2019 article noted findings suggesting that
households with a disabled adult are ``disproportionately food
insecure,'' and that ``disabilities are associated with food insecurity
through multiple pathways.'' \55\ We do not know to what extent this
rule will result in increased food security alongside other more
prominent benefits, such as reduced burden associated with less
reporting required by claimants. However, we intend for it to have an
impact in this area. SSI applicants and recipients are a population
likely to face challenges in food security. By removing food from the
ISM calculation, we are removing obstacles to obtaining food that could
help ease the burden of rising food costs for some recipients.
---------------------------------------------------------------------------
\54\ See ``Key Statistics & Graphics.'' USDA Economic Research
Service, <a href="http://www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/key-statistics-graphics">www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/key-statistics-graphics</a>.
\55\ Heflin, Colleen; Altman, Colleen; Rodriguez, Laura. ``Food
insecurity and disability in the United States.'' Disability and
Health Journal, vol. 12, no. 2, 2019, pages 220-226, ISSN 1936-6574,
<a href="https://doi.org/10.1016/j.dhjo.2018.09.006">https://doi.org/10.1016/j.dhjo.2018.09.006</a>. Also, according to the
USDA Economic Research Service, disability is an important risk
factor for food insecurity. See Coleman-Jensen, Alisha; Nord, Mark.
``Disability is an Important Risk Factor for Food Insecurity.'' 6
May 2013, <a href="http://www.ers.usda.gov/amber-waves/2013/may/disability-is-an-important-risk-factor-for-food-insecurity">www.ers.usda.gov/amber-waves/2013/may/disability-is-an-important-risk-factor-for-food-insecurity</a>.
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Justification for Retaining Food-Related Questions
As explained above, we would still ask certain food-related
questions for the narrow purpose of determining whether to use the PMV
or VTR rule to assess ISM, and we would make this clear in our
regulations. Using food expenses for this narrow purpose is a
significant simplification of our current policies for the reasons
provided above. Applicants or recipients would need only to answer
three questions related to food expenses with a ``yes'' or ``no''; they
would not need to provide dollar amounts.\56\ Similarly, this
consideration would allow us to remain consistent with our current
policy of when we evaluate applicants or recipients under the PMV rule.
If we did not continue to consider food for this narrow purpose, some
applicants or recipients who currently have their ISM evaluated under
the PMV rule would be required to have their ISM evaluated under the
VTR rule, which might be disadvantageous for them. Based on
administrative data of recipients' current living arrangements as of
May 19, 2022, we found the following: 12,977 recipients earmark their
household operating expenses contributions for both food and shelter;
3,427 earmark for food only; 39,412 recipients report that they ``eat
all meals out;'' and 889,651 recipients report that they ``buy food
separately.'' \57\ This data comes from the SSI Claims System, which
includes all recipients receiving SSI as of May 19, 2022. While some of
these recipients may no longer face an ISM reduction at all under our
proposal because they exclusively receive food support and do not
receive any shelter support (see, for example, our previous example
with ``Larry''), many of these recipients are in in-kind support
situations similar to our example with ``Michael.'' However, unlike in
our example with ``Michael,'' which discusses rebutting the PMV under
our current rules, if Michael were no longer able to earmark expenses
for food, and we did not continue to ask these food questions, the VTR
rule would apply. We do not have precise estimates of how much the
average increase in ISM reductions would be in such situations.
---------------------------------------------------------------------------
\56\ These questions are: (1) do you buy food separately from
the household? (2) do you eat all meals out? and (3) do you receive
SNAP payments? If applicants or recipients answer ``yes'' to any of
these questions, we will evaluate their ISM using the PMV rule. Food
expenses would not be included in the calculation.
\57\ See Tables 2 and 3 of our supplemental document titled,
``Tables of Administrative Data Related to In-Kind Support and
Maintenance (ISM),'' available at <a href="http://www.regulations.gov">www.regulations.gov</a> as a
supporting document for Docket SSA-2021-0014.
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As discussed in greater detail in the E.O. 12866 section below, in
addition to ensuring that our proposal to remove food from the ISM
calculation does not inadvertently disadvantage individuals to whom the
PMV rule currently applies, retaining these food-related questions
would also result in our applying the PMV rule to certain individuals
who are currently evaluated under the VTR rule. In our case study, we
found that roughly one-third (i.e., 122 of 353) of recipients currently
evaluated under VTR would instead be evaluated under PMV. Of those 122
cases, 46 would receive more-favorable treatment under our proposal. We
assumed that they would successfully rebut the PMV, and these 46 cases
on average would see an increase of $166 in Federal SSI payments in
2023 relative to current rules. We assumed that another 51 cases would
not successfully rebut the PMV and have no change in SSI payment,
because they have no other income. In the remaining 25 cases, however,
we assumed that the PMV would not be rebutted and that the recipient
has other income of at least $20, which would result in these
recipients' experiencing a $20 decrease in monthly Federal SSI payments
relative to current rules (because PMV reductions are subject to one-
third of the FBR plus the $20 general income exclusion).
While we recognize that some applicants and recipients may not
benefit from our proposed changes, we believe that retaining the three
food questions is necessary to ensure that individuals who currently
have the PMV rule applied to them, and thus have the ability to rebut
the PMV, continue to have the PMV rule applied to them where
appropriate. As discussed in the solicitation for comments, we welcome
comments on alternative ways to achieve our stated goals related to
retaining these food questions, including advancing equity and
simplifying the program.
Clarifications to Our Definition of Income
When we remove food from the calculation of ISM, we would make that
clear in our general definition of income. This change would ensure
consistency among our regulations. Separate from the removal of food
from the calculation of ISM, we would use this opportunity to clarify
that income may be received constructively. Constructive receipt of
income is part of our current policy, and this change would make the
definition of income clearer.
Explanation of Changes
We propose to revise our ISM regulations to make clear in 20 CFR
416.1130 that we have removed food from the calculation of ISM. We
would also revise the general definition of income in 20 CFR 416.1102
accordingly, and we would take the opportunity to clarify in the
general definition of income that income may be constructively
received. We would also make minor revisions to several other
regulatory sections to conform and align with these updates. These
other sections include 20 CFR 416.1103, 416.1104, 416.1121, 416.1131,
416.1132, 416.1133, 416.1140, 416.1147, 416.1148, and 416.1149.
Solicitation for Public Comment
As discussed elsewhere in this rulemaking, we are seeking public
comment on this proposed rule. Questions the public may wish to
consider when evaluating this proposed rule:
<bullet> Are there additional aspects of the ISM policy that we
could simplify under current statutory authorities? What would be the
effects of doing so?
<bullet> Are there any other policies that are related to ISM that
we should consider
[[Page 9789]]
in the context of this proposed rulemaking?
<bullet> Do you have additional information that relates to or
otherwise informs our description of the applicant or recipient
experience under current ISM policies?
<bullet> Are there forms or other information collections that we
have not noted that would or should require modification as a result of
this proposed policy change?
<bullet> Are there other information collection improvements that
could further reduce respondent burden, either under the current ISM
policy or under the policy proposed in this rule?
<bullet> Is there data or research related to equity and the SSI
population (or, more generally, low-income or disabled populations)
that could also be used to inform the final rule?
<bullet> Is there data or research related to administrative burden
and the SSI population (or, more generally, low-income or disabled
populations) that could also be used to inform the final rule?
<bullet> Do you have any additional justifications for, or
arguments against, this proposed rule?
<bullet> Are there other methods we could use to measure the time-
savings associated with this proposed rule? Are there other methods of
the value of time we could use to measure the opportunity costs
associated with this policy?
<bullet> If you have had experience with the rebuttal process:
[cir] Are applicants and recipients to whom the PMV rule applies
typically able to comprehend the requirements associated with rebuttal?
Are there terminological or other plain-language improvements we could
make to the rebuttal process to improve clarity or reduce burden on
applicants and recipients?
[cir] Does the ``Rebuttal Rights Notification'' (included in the
docket for this rulemaking) clearly communicate the purpose of and
requirements for rebutting the PMV? Are there ways we could improve how
this information is communicated?
[cir] Are there any regulatory, sub-regulatory, paperwork, or
process improvements we could make to the PMV rebuttal process to
reduce respondent burden or otherwise increase successful submission of
rebuttal evidence?
Rulemaking Analyses and Notices
We will consider all comments we receive on or before the close of
business on the comment closing date indicated above. The comments will
be available for examination in the rulemaking docket for these rules
at the above address. We will file comments received after the comment
closing date in the docket and may consider those comments to the
extent practicable. However, we will not respond specifically to
untimely comments. We may publish a final rule at any time after close
of the comment period.
Clarity of This Rule
Executive Order 12866, as supplemented by Executive Order 13563,
requires each agency to write all rules in plain language. In addition
to your substantive comments on this proposed rule, we invite your
comments on how to make the rule easier to understand.
For example:
<bullet> Would more, but shorter, sections be better?
<bullet> Are the requirements in the rule clearly stated?
<bullet> Have we organized the material to suit your needs?
<bullet> Could we improve clarity by adding tables, lists, or
diagrams?
<bullet> What else could we do to make the rule easier to
understand?
<bullet> Does the rule contain technical language or jargon that is
not clear?
<bullet> Would a different format make the rule easier to
understand, e.g., grouping and order of sections, use of headings,
paragraphing?
When will we start to use this rule?
We will not use this rule until we evaluate public comments and
publish a final rule in the Federal Register. All final rules include
an effective date. We will continue to use our current rules until that
date. If we publish a final rule, we will include a summary of those
relevant comments we received along with responses and an explanation
of how we will apply the new rule.
Regulatory Procedures
Executive Order 12866, as Supplemented by Executive Order 13563
We consulted with the Office of Management and Budget (OMB) and
determined that this rule meets the criteria for a significant
regulatory action under Executive Order 12866, as supplemented by
Executive Order 13563. Therefore, OMB reviewed it.
Anticipated Transfers to Our Program
The primary anticipated impact of this rule is a small increase in
monetary transfers from the government to SSI recipients. To estimate
this, our Office of the Chief Actuary (OCACT) took a sample of 0.1% of
all SSI recipients who are impacted by the current ISM policy--a total
sample of 764 recipients. Based on the best available data, OCACT
estimated that implementation of these proposed rules for all
eligibility and payment determinations effective April 1, 2023, and
later will result in an increase in Federal SSI payments of a total of
about $1.5 billion over the period of fiscal years 2023 through 2032.
This represents an increase in Federal SSI payments of 0.2%.
Of the 764 cases in our sample:
(1) (PMV to PMV) We estimate that 411 cases (54%) are individuals
who are currently evaluated under PMV and would continue to be
evaluated under PMV. As discussed in the preamble, there are multiple
types of living arrangements that result in assessment under the PMV
rule, including (1) individuals who live in another person's household
and receive either food or shelter support, but not both; and (2)
individuals who live in their own household and who receive in-kind
shelter or food support, or both. In each of these PMV scenarios, some
recipients currently receive the PMV reduction, currently $324.66
(after the general income exclusion is applied, if there is no other
income, the current reduction is $304.66--the same as the VTR), while
others rebut the PMV and have their Federal SSI payment reduced by a
smaller amount. We estimate that of these 411 cases, 42 would have an
increase in the monthly SSI payment as a result of this proposed rule.
Of these 42 individuals, we estimate that 24 recipients would have no
PMV reduction and that the other 18 recipients would have a lesser PMV
reduction. We estimate that the average increase in the monthly Federal
SSI payment among those 42 cases would be $91 in 2023. We estimate that
roughly 10% of all PMV-impacted recipients, or roughly 43 thousand, (5%
of the total population of ISM-impacted recipients), will see an
increase in their Federal SSI payment as a result of this aspect of the
rule.
In our review of these cases, we did not examine which types of the
above-described living arrangements would see changes due to the
proposed rule. There are three main groups of individuals who could see
this type of change: (1) Individuals who live in someone else's home
and receive only food support because they earmark their contribution
to household shelter expenses. These individuals would not be
considered to be receiving countable ISM under the proposed rule as
long as their contribution to shelter expenses meets their pro rata
share. (2) Individuals who live in someone else's home and receive only
shelter support,
[[Page 9790]]
because they earmark their contribution to household food expenses.
These individuals might see their ISM decrease to zero dollars if they
no longer need support and are able to contribute to their household
expenses that cover their pro rata share. (3) Individuals who live in
their own household and receive both food and shelter support. These
individuals would see a decrease in their ISM amount, if their
countable ISM falls below the PMV and they choose to rebut.
(2) (VTR to VTR) We estimate that 231 cases (30%) are individuals
who are currently evaluated under VTR and would continue to be
evaluated under VTR. These are recipients who under current rules live
throughout a month in another person's household and receive both food
and shelter support from others living in the household, and under the
proposed rules live throughout a month in another person's household
and receive shelter support from others living in the household. Where
the VTR rule applied under current policy and would apply under the
proposed policy, there would be no change in ISM as a result of the
proposed rule.
(3) (VTR to PMV) We estimate that 122 cases (16%) are individuals
who are currently evaluated under VTR and would be evaluated under PMV
under proposed rules. These are individuals who live in another
person's household and receive in-kind shelter support, but who we
anticipate will indicate they consume all their food separately, by
asserting that they buy food separately from the household, that they
eat all meals out, or that they receive Supplemental Nutrition
Assistance Program (SNAP) benefits. We estimate that 46 of these
individuals would have an increase in their monthly SSI payment. On
average we estimate that the increase in the monthly SSI payment would
be $166 in 2023. Of these 46 individuals, we estimate that 11 would
have no PMV reduction and that 35 would be charged less than the
maximum amount. We estimate that roughly 6% of all ISM-impacted
recipients, or roughly 48 thousand recipients, will see an increase in
their payment as a result of this aspect of the rule. We estimate that
another 51 individuals who would shift from VTR to PMV would not
successfully rebut the PMV and would have no change in payment due to
the proposed rule because they have no other income. We estimate that
roughly 7% or 52 thousand ISM-impacted recipients would see no change
in payment as a result of this aspect of the rule. By contrast, the
other 25 individuals who would shift from VTR to PMV would not
successfully rebut the PMV and would have other income. In these
instances, recipients would experience a $20 reduction in their monthly
Federal SSI payment. This is because under current rules they receive
the VTR ISM reduction, which is one-third of the Federal benefit rate
(currently $304.66), whereas under the proposed rule these recipients
would receive the PMV ISM reduction, which is one-third of the Federal
benefit rate plus the amount of the general income exclusion (currently
$20) for a total Federal payment reduction for an individual of
$324.66. When a recipient does not have other income, the $20 general
income exclusion reduces the countable ISM amount. However, when a
recipient has other income totaling at least $20, the $20 general
exclusion is already used to reduce that income, and the payment is
thus reduced by the full PMV amount when the PMV is not successfully
rebutted. We estimate that roughly 3% of all ISM-impacted recipients,
or roughly 26 thousand, will see a decrease in their Federal SSI
payment as a result of this aspect of the rule.
Therefore, of the 764 cases in our sample, we estimate that 88
total cases (12% of those affected by current ISM rules and 1% of all
Federal SSI recipients) would have an increase in monthly SSI payments.
25 total cases (3% of ISM-impacted recipients, less than 1% of all
Federal SSI recipients) would have a decrease in monthly Federal SSI
payments. We estimate that the average increase in the monthly Federal
SSI payment would be $131 in 2023 for recipients experiencing an
increase, and that the average Federal SSI payment reduction would be
$20 for recipients experiencing a decrease. The table below provides a
summarization of the case study.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Aggregate
Average change Extrapolation change in
Current rules Proposed rules Impact Count Percentage in monthly to all ISM monthly
payments in recipients (in payments in
2023 thousands) 2023
--------------------------------------------------------------------------------------------------------------------------------------------------------
PMV............................. PMV............... No change in 369 48 .............. 383 ..............
payment.
PMV............................. PMV............... Increase in 18 2 $105 19 $1,889
payment.
PMV............................. No ISM............ Increase in 24 3 81 24 1,934
payment.
VTR............................. VTR............... No change in 231 30 .............. 240 ..............
payment.
VTR............................. PMV............... Increase in 46 6 166 48 7,658
payment.
VTR............................. PMV............... No change in 51 7 .............. 52 ..............
payment.
VTR............................. PMV............... Reduction in 25 3 (20) 26 (500)
payment.
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Anticipated Administrative Cost-Savings to the Social Security
Administration
The Office of Budget, Finance, and Management estimates that this
proposal will result in net administrative savings of $25 million for
the 10-year period from FY 2023 to FY 2032. The net administrative
savings is mainly a result of unit time savings as field office
employees will not have to spend time explaining and developing food as
part of ISM during initial claims, pre-effectuations reviews,
redeterminations, and post-eligibility actions. The savings are offset
by costs to update our systems to remove food from the ISM calculation,
costs to send notices to inform current recipients of the policy
changes, costs to address inquiries from the notices, and costs as a
result of more individuals' being eligible for SSI benefits, which
increases claims, reconsiderations, appeals, CDRs, redeterminations,
and post-eligibility actions.
Anticipated Time-Savings and Qualitative Benefits
We anticipate qualitative benefits from this proposal because, if
implemented, it would simplify our policy and make the SSI claims
process easier for applicants and recipients. The public benefits from
simplifications to our program because it may take less time and effort
to understand our program and its requirements, and may make it easier
to comply with the program's requirements. Also, because SSI applicants
and recipients would not
[[Page 9791]]
need to report as much information related to food expenses, they may
save time that they otherwise would have spent gathering information
and contacting us to report this information. As discussed in the
Paperwork Reduction Act (PRA) section below, we estimate the time
savings just on the SSI Application forms to be 1 minute per response.
This represents an annual burden reduction of 95,668 hours. We estimate
that these time-savings will result in cost-savings of $1,691,311 for
the first year, and an estimated cost-savings of $16,913,110 over a 10-
year period (we developed this figure by approximating the
``opportunity cost'' for the respondents, which varies per form).
However, we anticipate that the time-savings on the SSI application
are only a limited component of the overall time-savings to the public.
By eliminating the need to report food support, recipients will no
longer need to report changes across the course of their receipt of
SSI. Additionally, reporting food support, whether on the initial
application or at a later point during post-award eligibility,
oftentimes requires us to develop further, which may require completion
of a variety of information collections and forms, to include SSA-8006-
F4 (Statement of Living Arrangements, In-Kind Support and Maintenance);
SSA-8011-F3 Statement of Household Expenses and Contributions); SSA-
8000 (Application for Supplemental Security Income (SSI); SSA 8202-BK
(Statement for Determining Continuing Eligibility for Supplemental
Security Income Payment); SSA-8203-BK (Statement for Determining
Continuing Eligibility for Supplemental Security Income Payment; SSA-
5062 (Claimant Statement about Loan of Food or Shelter); SSA-L5063-F3
(Statement about Food or Shelter Provided to Another). As discussed in
the PRA section, we estimate that this proposed change would not result
in fewer forms completed. However, with a time savings of one minute
per response, we estimate an overall time savings of 95,668 hours. Time
savings in completing these forms not only benefits the recipient; we
often must develop this information from third parties, whose time will
also be saved through this proposal. While we do not maintain
administrative data on the volume of post-award information collections
pertaining to food-support reporting, we anticipate administrative time
savings.
In many situations recipients fail to report receiving food in a
timely manner. This requires us to redevelop this issue after a
recipient's monthly benefit amount has been paid. This, in turn, may
create an overpayment, which would require us to develop the issue
further and contact the recipient for an interview. As discussed in the
preamble, we expect that simplifying the ISM policy will reduce
improper payments. The overpayment recovery process can, at times, be a
time-intensive process to navigate, particularly for beneficiaries
seeking to have their overpayment waived or reconsidered. While we have
not quantified the amount of time beneficiaries spend working to
resolve overpayments related to food ISM, we anticipate that this
proposal would result in time savings associated with reduced improper
payments.
Further, as discussed in the preamble, there are potential
qualitative benefits to the proposal such as reduced food insecurity,
enhanced social support networks, reduced frustration and anxiety among
the beneficiary population associated with understanding and complying
with complicated food-support ISM policies, potentially enhanced
dignity with elimination of the need to report receipt of food to the
government (which may appear intrusive to some applicants and
recipients), and more consistent and equitable treatment of
beneficiaries' various sources of food assistance.
Anticipated Costs
Outside of transfers, we do not anticipate more than de minimis
costs associated with this rulemaking. Since this regulation would
reduce reporting requirements and simplify the evaluation process for
adjudicators, there are no costs in those areas. The SSI ISM policy is
complex by nature, and sometimes those complexities make it difficult
for the public to understand and follow the rules of the program.
Better understanding of SSI program rules may occur over time. We do
not anticipate that this proposal would affect labor market
participation in any significant way, in part because of the limited
understanding of the current policy in the beneficiary community that
has been noted by some, including the SSAB.\58\
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\58\ See the Social Security Advisory Board Statement on the
Supplemental Security Income Program, ``The Complexity of In-Kind
Support and Maintenance.'' 2015, https://www.ssab.gov/wp-content/
uploads/2021/03/2015_-SSI_In-
Kind_SupportMaintenance.pdf#:~:text=The%20Complexity%20of%20In-
Kind%20Support%20and%20Maintenance%20Public,annual%20report%20to%20th
e%20President%20and%20the%20Congress.
---------------------------------------------------------------------------
Executive Order 13132 (Federalism)
We analyzed this proposed rule in accordance with the principles
and criteria established by Executive Order 13132 and determined that
the proposed rule will not have sufficient Federalism implications to
warrant the preparation of a Federalism assessment. We also determined
that this proposed rule will not preempt any State law or State
regulation or affect the States' abilities to discharge traditional
State governmental functions.
Regulatory Flexibility Act
We certify that this proposed rule will not have a significant
economic impact on a substantial number of small entities because it
affects individuals only. Therefore, a regulatory flexibility analysis
is not required under the Regulatory Flexibility Act, as amended.
Paperwork Reduction Act
This final rule will require minor changes to the following forms:
1. SSA-8000-BK (OMB No. 0960-0229), Application for Supplemental
Security Income;
2. SSA-8006 (OMB No. 0960-0174), Statement of Living Arrangements,
In-Kind Support and Maintenance;
3. SSA-8011 (OMB No. 0960-0456), Statement of Household Expenses
and Contributions;
4. SSA-5062 & SSA-L5063 (OMB No. 0960-0529), Claimant Statement
about Loan of Food or Shelter and Statement about Food or Shelter
Provided to Another;
5. SSA-8202-BK (OMB No. 0960-0145), Statement for Determining
Continuing Eligibility for Supplemental Security Income Payment; and
6. SSA-8203-BK (OMB No. 0960-0416), Statement for Determining
Continuing Eligibility for Supplemental Security Income Payment.
The form changes will result in a burden reduction of one minute
per response per affected form, resulting in a 95,668-hour total burden
savings. This figure represents the difference between the previous and
new total estimated annual burden. See below for details of the burden
calculations.
Below are charts showing the revised burden estimates, to be
effective when we finalize the rule.
(1) SSA-8000-BK (0960-0229):
[[Page 9792]]
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Average wait
Average time in field
Number of Frequency of Average burden Estimated theoretical office or for Total annual
Modality of completion respondents response per response total annual hourly cost teleservice opportunity cost
(annually) (minutes) burden (hours) amount centers (dollars) ***
(dollars) * (minutes) **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSI Claim System..................... 1,646,520 1 34 933,028 * $19.86 ** 21 *** $29,974,897
SSA-8000-BK (Paper Form)............. 705 1 39 458 * 19.86 ** 21 *** 14,001
------------------------------------------------------------------------------------------------------------------
Totals........................... 1,647,225 .............. .............. 933,486 .............. .............. *** 29,988,898
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based this figure by averaging both the average DI payments based on SSA's current FY 2022 data (<a href="https://www.ssa.gov/legislation/2022factsheet.pdf">https://www.ssa.gov/legislation/2022factsheet.pdf</a>), and the average U.S. worker's hourly wages, as reported by Bureau of Labor Statistics data (<a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>).
** We based this figure on averaging both the average FY 2022 wait times for field offices and teleservice centers, based on SSA's current management
information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
(2) SSA-8006 (0960-0174):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average wait
Average time in field
Number of Frequency of Average burden Estimated theoretical office or Total annual
Modality of completion respondents response per response total annual hourly cost telephone wait opportunity cost
(minutes) burden (hours) amount time (minutes) (dollars) ***
(dollars) * **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSI Claims System.................... 109,436 1 6 10,944 * $11.70 ** 21 *** $576,190
SSA-8006 (Paper Form)................ 12,160 1 6 1,216 * 11.70 ** 21 *** 64,022
------------------------------------------------------------------------------------------------------------------
Totals........................... 121,595 .............. .............. 12,160 .............. .............. *** 640,212
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based this figure on the average DI payments based on SSA's current FY 2022 data (<a href="https://www.ssa.gov/legislation/2022factsheet.pdf">https://www.ssa.gov/legislation/2022factsheet.pdf</a>).
** ** We based this figure on averaging both the average FY 2022 wait times for field offices and teleservice centers, based on SSA's current management
information data.
*** *** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
(3) SSA-8011 (0960-0456):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average wait
Average time in field
Number of Frequency of Average burden Estimated theoretical office or for Total annual
Modality of completion respondents response per response total annual hourly cost teleservice opportunity cost
(minutes) burden (hours) amount centers (dollars) ***
(dollars) * (minutes) **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSI Claims System.................... 398,759 1 14 93,044 * $28.01 ** 21 *** $6,515,406
SSA-8011 (Paper Form)................ 21,000 1 14 4,900 * 28.01 ** 21 *** 343,123
------------------------------------------------------------------------------------------------------------------
Totals........................... 419,759 .............. .............. 97,944 .............. .............. *** 6,858,529
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based this figure on the average U.S. worker's hourly wages, as reported by Bureau of Labor Statistics data (<a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>).
** We based this figure on averaging both the average FY 2022 wait times for field offices and teleservice centers, based on SSA's current management
information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
(4) SSA-5062 & SSA-L5063 (0960-0529):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average wait
Average time in field
Number of Frequency of Average burden Estimated theoretical office or for Total annual
Modality of completion respondents response per response total annual hourly cost teleservice opportunity cost
(minutes) burden (hours) annual centers (dollars) ***
(dollars) * (minutes) **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSA-5062 (SSI Claims System)......... 29,026 1 19 9,192 * $19.86 ** 21 *** $384,311
SSA-L5063 (SSI Claims System)........ 29,026 1 19 9,192 * 19.86 ** 21 *** 384,311
SSA-5062 (Paper Form)................ 29,026 1 29 14,029 * 19.86 ** 21 *** 480,374
SSA-L5063 (Paper Form)............... 29,026 1 29 14,029 * 19.86 ** 21 *** 480,374
------------------------------------------------------------------------------------------------------------------
Total............................ 116,104 .............. .............. 46,442 .............. .............. *** 1,729,370
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based this figure by averaging both the average DI payments based on SSA's current FY 2022 data (<a href="https://www.ssa.gov/legislation/2022factsheet.pdf">https://www.ssa.gov/legislation/2022factsheet.pdf</a>), and the average U.S. worker's hourly wages, as reported by Bureau of Labor Statistics data (<a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>).
** We based this figure on averaging both the average FY 2022 wait times for field offices and teleservice centers, based on SSA's current management
information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
[[Page 9793]]
(5) SSA-8202-BK (0960-0145):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average wait
Average time in field
Number of Frequency of Average burden Estimated theoretical office or for Total annual
Modality of completion respondents response per response total annual hourly cost teleservice opportunity cost
(minutes) burden (hours) annual centers (dollars) ***
(dollars) * (minutes) **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSI Claims System.................... 1,764,207 1 19 558,666 * $11.70 ** 21 *** $13,760,815
SSA-8202-BK (Paper Form)............. 67,698 1 20 22,566 * 11.70 ** 21 *** 541,242
Totals........................... 1,831,905 .............. .............. 581,232 .............. .............. *** 14,302,057
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based this figure on the average DI payments based on SSA's current FY 2022 data (<a href="https://www.ssa.gov/legislation/2022factsheet.pdf">https://www.ssa.gov/legislation/2022factsheet.pdf</a>).
** We based this figure on averaging both the average FY 2022 wait times for field offices and teleservice centers, based on SSA's current management
information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
(6) SSA-8203-BK (0960-0416):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average wait
Average time in field
Number of Frequency of Average burden Estimated theoretical office or for Total annual
Modality of completion respondents response per response total annual hourly cost teleservice opportunity cost
(minutes) burden (hours) annual centers (dollars) ***
(dollars) * (minutes) **
--------------------------------------------------------------------------------------------------------------------------------------------------------
SSI Claims System.................... 1,468,220 1 18 440,466 * $19.86 ** 21 *** $18,953,252
SSA-8203-BK (Paper Form)............. 135,357 1 19 42,863 * 19.86 ** 21 *** 1,792,127
------------------------------------------------------------------------------------------------------------------
Totals........................... 1,603,577 .............. .............. 483,329 .............. .............. *** 20,745,379
--------------------------------------------------------------------------------------------------------------------------------------------------------
* We based this figure by averaging both the average DI payments based on SSA's current FY 2022 data (<a href="https://www.ssa.gov/legislation/2022factsheet.pdf">https://www.ssa.gov/legislation/2022factsheet.pdf</a>), and the average U.S. worker's hourly wages, as reported by Bureau of Labor Statistics data (<a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>).
** We based this figure on averaging both the average FY 2022 wait times for field offices and teleservice centers, based on SSA's current management
information data.
*** This figure does not represent actual costs that SSA is imposing on recipients of Social Security payments to complete this application; rather,
these are theoretical opportunity costs for the additional time respondents will spend to complete the application. There is no actual charge to
respondents to complete the application.
We calculated the aggregate burden saving associated with this
proposed rule as follows:
2,250,261 (total current reporting burden across all six
information collections)-2,154,593 (total reporting burden across all
six information collections reflecting a 1 minute burden reduction due
to implementation of this rule) = 95,668 burden hours saved.
SSA is submitting an Information Collection Request for clearance
to OMB. We are soliciting comments on the burden estimate; the need for
the information; its practical utility; ways to enhance its quality,
utility, and clarity; and ways to minimize the burden on respondents,
including the use of automated techniques or other forms of information
technology. If you would like to submit comments, please send them to
the following locations:
Office of Management and Budget, Attn: Desk Officer for SSA, Fax
Number: 202-395-6974, Email address: <a href="/cdn-cgi/l/email-protection#5e11170c1f010d2b3c33372d2d3731301e31333c703b312e70393128"><span class="__cf_email__" data-cfemail="82cdcbd0c3ddd1f7e0efebf1f1ebedecc2edefe0ace7edf2ace5edf4">[email protected]</span></a>
Social Security Administration, OLCA, Attn: Reports Clearance Director,
3100 West High Rise, 6401 Security Blvd., Baltimore, MD 21235, Fax:
410-966-2830, Email address: <a href="/cdn-cgi/l/email-protection#5d120f730f382d322f292e731e31383c2f3c333e381d2e2e3c733a322b"><span class="__cf_email__" data-cfemail="2a657804784f5a45585e590469464f4b584b44494f6a59594b044d455c">[email protected]</span></a>
You can submit comments until March 17, 2023, which is 30 days
after the publication of this notice. To receive a copy of the OMB
clearance package, contact the SSA Reports Clearance Officer using any
of the above contact methods. We prefer to receive comments by email or
fax.
(Catalog of Federal Domestic Assistance Program Nos. 9601, 96.006
Supplemental Security Income)
List of Subjects in 20 CFR Part 416
Administrative practice and procedure, Reporting and recordkeeping
requirements, Supplemental Security Income (SSI).
The Acting Commissioner of Social Security, Kilolo Kijakazi, Ph.D.,
M.S.W., having reviewed and approved this document, is delegating the
authority to electronically sign this document to Faye I. Lipsky, who
is the primary Federal Register Liaison for SSA, for purposes of
publication in the Federal Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional
Affairs, Social Security Administration.
For the reasons stated in the preamble, we propose to amend 20 CFR
chapter III, part 416, as set forth below:
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart K--Income
0
1. The authority citation for subpart K of part 416 continues to read
as follows:
Authority: Secs. 702(a)(5), 1602, 1611, 1612, 1613, 1614(f),
1621, 1631, and 1633 of the Social Security Act (42 U.S.C.
902(a)(5), 1381a, 1382, 1382a, 1382b, 1382c(f), 1382j, 1383, and
1383b); sec. 211, Pub. L. 93-66, 87 Stat. 154 (42 U.S.C. 1382 note).
0
2. Amend Sec. 416.1102 by revising to read as follows:
Sec. 416.1102 What is income?
Income is anything that you receive in cash or in kind that you can
use to meet your needs for food or shelter. For purposes of this
definition, income may be received ``actually'' or ``constructively.''
Income is received constructively, unless there are significant
restrictions on your ability to receive it, if it is under your control
or you can use it despite not actually receiving it. Sometimes income
also includes more or less than you actually receive (see Sec.
416.1110 and Sec. 416.1123(b)). In-kind income is not cash but is
something else that you can use to meet your needs for food or shelter.
Exception: Food is not included in the calculation of in-kind support
[[Page 9794]]
and maintenance, which is a type of unearned income that we have
special rules for valuing (see Sec. Sec. 416.1130 through 416.1148).
0
3. Amend Sec. 416.1103 by revising paragraphs (a)(4), (b)(2), the
example in paragraph (g) and paragraph (j) to read as follows:
Sec. 416.1103 What is not income?
(a) * * *
(4) In-kind assistance (except shelter) provided under a
nongovernmental program whose purpose is to provide medical care or
medical services;
* * * * *
(b) * * *
(2) In-kind assistance (except shelter) provided under a
nongovernmental program whose purpose is to provide social services; or
* * *
* * * * *
(g) * * *
Examples: If your daughter uses her own money to pay your mortgage
payment directly to the mortgage lender, the payment itself is not your
income because you do not receive it. However, because of your
daughter's payment, the transaction provides you with shelter; the
mortgage payment is in-kind income for shelter to you. Similarly, if
you book a hotel room on credit and your son later pays the bill, the
payment to the hotel is not income to you, but the payment of the bill
is in-kind income for shelter to you. In this example, if your son pays
for the hotel bill in a month after the month of the hotel stay, we
will count the in-kind income to you in the month in which he pays the
bill. On the other hand, if your brother pays a lawn service to mow
your grass, the payment is not income to you because the mowing cannot
be used to meet your needs for food or shelter. Therefore, the payment
for the lawn service is not in-kind income as defined in Sec.
416.1102.
* * * * *
(j) Receipt of certain noncash items. Any item you receive (except
shelter as defined in Sec. 416.1130) which would be an excluded
nonliquid resource (as described in subpart L of this part) if you kept
it, is not income.
Example 1: A community takes up a collection to buy you a specially
equipped van, which is your only vehicle. The value of this gift is not
income because the van does not provide you with food or shelter and
will become an excluded nonliquid resource under Sec. 416.1218 in the
month following the month of receipt.
Example 2: You inherit a house which is your principal place of
residence. The value of this inheritance is income because the house
provides you with shelter and shelter is income. However, we value the
house under the rule in Sec. 416.1140.
0
4. Amend Sec. 416.1104 by revising the fourth sentence and removing
the fifth sentence in the paragraph to read as follows:
Sec. 416.1104 Income we count.
* * * One type of unearned income is in-kind support and
maintenance (shelter), which we value depending on your living
arrangement.
* * * * *
0
5. Amend Sec. 416.1121 by revising paragraph (h) to read as follows:
Sec. 416.1121 Types of unearned income.
* * * * *
(h) Support and maintenance in kind. This is shelter furnished to
you that we value depending on your living arrangement. We use one rule
if you are living throughout a month in another person's household
receiving all your shelter from others living in the household. We use
different rules for other situations in which you receive shelter. We
discuss all of the rules in Sec. Sec. 416.1130 through 416.1148.
0
6. Amend Sec. 416.1130 by revising paragraphs (a), the first, sixth
and seventh sentence in paragraph (b) and paragraph (c) to read as
follows:
Sec. 416.1130 Introduction.
(a) General. Both earned income and unearned income include items
received in kind (see Sec. 416.1102). Generally, we value in-kind
items at their current market value, and we apply the various
exclusions for both earned and unearned income. However, we have
special rules for valuing shelter that is received as unearned income
(in-kind support and maintenance). This section and the ones that
follow discuss these rules. In these sections (i.e., Sec. Sec.
416.1130 through 416.1148) we use the in-kind support and maintenance
you receive in the month as described in Sec. 416.420 to determine
your SSI benefit. We value the in-kind support and maintenance using
the Federal benefit rate for the month in which you receive it.
Exception: For the first 2 months for which a cost-of-living adjustment
applies, we value in-kind support and maintenance you receive using the
VTR or PMV based on the Federal benefit rate as increased by the cost-
of-living adjustment.
Example: Mr. Jones resides in his son's house. Mr. Jones receives a
monthly SSI Federal benefit rate that is reduced by one-third. This
one-third represents the value of the income he receives because he
lives in the household of a son, throughout a month, who provides all
of his shelter (in-kind support and maintenance). In January, we
increase his SSI benefit because of a cost-of-living adjustment. We
determine his SSI payment for that month considering the shelter he
received from his son two months earlier in November. In determining
the value of that shelter he received in November, we use the Federal
benefit rate for January.
(b) * * * We calculate in-kind support and maintenance considering
any shelter that is given to you or that you receive because someone
else pays for it. * * * In those States, if the required amount of rent
is less than the presumed maximum value, we will consider as in-kind
support and maintenance the difference between the required amount of
rent and either the presumed maximum value or the current market value,
whichever is less. In addition, cash payments made to uniformed service
members as allowances for on-base housing or privatized military
housing are in-kind support and maintenance. * * *
(c) How we value in-kind support and maintenance. We have two rules
for valuing the in-kind support and maintenance that we must count. The
one-third reduction rule applies if you are living in the household of
a person who provides you with shelter, unless we determine that you
buy your food separately from the household, eat all meals out, or
receive Supplemental Nutrition Assistance Program benefits (see
Sec. Sec. 416.1131 through 416.1133). The presumed value rule applies
in all other situations in which you receive countable in-kind support
and maintenance (see Sec. Sec. 416.1140 through 416.1145). If certain
conditions exist, we do not count in-kind support and maintenance.
These conditions are discussed in Sec. Sec. 416.1141 through 416.1145.
* * * * *
0
7. Amend Sec. 416.1131 by revising paragraph (a)(2) and adding
paragraph (a)(3) to read as follows:
Sec. 416.1131 The one-third reduction rule.
(a) * * *
(2) Receive shelter from others living inside the household or from
a combination of others living inside the household and others living
outside the household. (If you do not receive shelter from others
living in the household, see Sec. 416.1140.)
(3) Do not buy food separately from the household, eat all meals
out, or receive Supplemental Nutrition Assistance Program benefits. If
you buy food separately from the household, eat all meals out, or
receive Supplemental
[[Page 9795]]
Nutrition Assistance Program benefits, any ISM received for shelter
will be calculated under the PMV rule (see Sec. 416.1140).
* * * * *
0
8. Amend Sec. 416.1133 by revising the last sentence of paragraph (a)
and the first sentence of paragraph (c) to read as follows:
Sec. 416.1133 What is a pro rata share of household operating
expenses.
(a) * * * (If you are receiving shelter from someone outside the
household, we value it under the rule in Sec. 416.1140.)
* * * * *
(c) Household operating expenses are the household's total monthly
expenditures for rent, mortgage, property taxes, heating fuel, gas,
electricity, water, sewerage, and garbage collection service. * * *
0
9. Amend Sec. 416.1140 by revising to read as follows:
Sec. 416.1140 The presumed value rule.
(a) How we apply the presumed value rule. (1) When you receive in-
kind support and maintenance and the one-third reduction rule does not
apply, we use the presumed value rule. Instead of determining the
actual dollar value of any shelter you receive, we presume that it is
worth a maximum value. This maximum value is one-third of your Federal
benefit rate plus the amount of the general income exclusion described
in Sec. 416.1124(c)(12).
(2) The presumed value rule allows you to show that your in-kind
support and maintenance is not equal to the presumed value. We will not
use the presumed value if you show us that--
(i) The current market value of any shelter you receive, minus any
payment you make for it, is lower than the presumed value; or
(ii) The actual amount someone else pays for your shelter is lower
than the presumed value.
(b) How we determine the amount of your ISM under the presumed
value rule. (1) If you choose not to question the use of the presumed
value, or if the presumed value is less than the actual value of the
shelter you receive, we use the presumed value to figure your ISM.
(2) If you show us, as provided in paragraph (a)(2) of this
section, that the presumed value is higher than the actual value of the
shelter you receive, we use the actual amount to figure your ISM.
0
10. Amend Sec. 416.1147 by revising paragraph (a), the paragraph
heading in paragraph (b) and first sentence in paragraph (b)(1),
paragraph (c) and the third sentence in paragraph (d)(1) to read as
follows:
Sec. 416.1147 How we value in-kind support and maintenance for a
couple.
(a) Both members of a couple live in another person's household and
receive shelter from others living in the household or a combination of
others living inside the household and others living outside the
household. When both of you live in another person's household
throughout a month and receive shelter from others living in the
household or a combination of others living inside the household and
others living outside the household, we apply the one-third reduction
to the Federal benefit rate for a couple (Sec. 416.1131).
(b) One member of a couple is in a medical institution and the
other member of the couple lives in another person's household and
receives shelter from others living in the household or a combination
of others living inside the household and others living outside the
household. (1) If one of you is living in the household of another
person who provides you with shelter, and the other is temporarily
absent from the household as provided in Sec. 416.1149(c)(1) (in a
medical institution that receives substantial Medicaid payments for his
or her care (Sec. 416.211(b))), and is ineligible in the month for
either benefit payable under Sec. 416.212, we compute your benefits as
if you were separately eligible individuals (see Sec. 416.414(b)(3)).
* * *
(c) Both members of a couple are subject to the presumed value
rule. If the presumed value rule applies to both of you, we value any
shelter you and your spouse receive at one-third of the Federal benefit
rate for a couple plus the amount of the general income exclusion
(Sec. 416.1124(c)(12)), unless you can show that its value is less as
described in Sec. 416.1140(a)(2).
(d) * * *
(1) * * * We value any shelter received by the one outside of the
medical institution at one-third of an eligible individual's Federal
benefit rate, plus the amount of the general income exclusion (Sec.
416.1124(c)(12)), unless you can show that its value is less as
described in Sec. 416.1140(a)(2). * * *
* * * * *
0
11. Amend Sec. 416.1148 by revising paragraph (b) to read as follows:
Sec. 416.1148 If you have both in-kind support and maintenance and
income that is deemed to you.
* * * * *
(b) The presumed value rule and deeming of income. (1) If you live
in the same household with someone whose income can be deemed to you
(Sec. Sec. 416.1160 through 416.1169), or with a parent whose income
is not deemed to you because of the provisions of Sec. 416.1165(i),
any shelter that person provides is not income to you. However, if you
receive any shelter from another source, it is income and we value it
under the presumed value rule (Sec. 416.1140). We also apply the
deeming rules.
(2) If you are a child under age 18 who lives in the same household
with an ineligible parent whose income may be deemed to you, and you
are temporarily absent from the household to attend school (Sec.
416.1167(b)), any shelter you receive at school is income to you unless
your parent purchases it. Unless otherwise excluded, we value this
income under the presumed value rule (Sec. 416.1140). We also apply
the deeming rules to you (Sec. 416.1165).
0
12. Amend Sec. 416.1149 by revising paragraph (c)(1)(i) and (ii) to
read as follows:
Sec. 416.1149 What is a temporary absence from your living
arrangement.
* * * * *
(c) * * *
(1)(i) If you enter a medical treatment facility where you are
eligible for the reduced benefits payable under Sec. 416.414 for full
months in the facility, and you are not eligible for either benefit
payable under Sec. 416.212 (and you have not received such benefits
during your current period of confinement) and you intend to return to
your prior living arrangement, we consider this a temporary absence
regardless of the length of your stay in the facility. We use the rules
that apply to your permanent living arrangement to value any shelter
you receive during the month (for which reduced benefits under Sec.
416.414 are not payable) you enter or leave the facility. During any
full calendar month you are in the medical treatment facility, you
cannot receive more than the Federal benefit rate described in Sec.
416.414(b)(1). We do not consider shelter provided during a medical
confinement to be income.
(ii) If you enter a medical treatment facility and you are eligible
for either benefit payable under Sec. 416.212, we also consider this a
temporary absence from your permanent living arrangement. We use the
rules that apply to your permanent living arrangement to value any
shelter you receive during the month you enter the facility and
throughout the period you are eligible for these benefits. We consider
your absence to be temporary through the last month benefits under
Sec. 416.212 are paid unless you are discharged from the
[[Page 9796]]
facility in the following month. In that case, we consider your absence
to be temporary through the date of discharge.
* * * * *
[FR Doc. 2023-02731 Filed 2-14-23; 8:45 am]
BILLING CODE 4191-02-P
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</html>Indexed from Federal Register on February 15, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.