0740.000.00 PROCEDURES FOR DECEMBER 1973 CASH AND VENDOR CASES

Claimants who RECEIVED CASH AND VENDOR PAYMENTS in December 1973 continue to be eligible for the cash grant.

To be classified as a “cash and vendor” case, the claimant must receive the cash payment while in vendor status.

EXAMPLE 1: Ms. Jones was approved for vendor in November 1973. Since she had no income, she also received a cash grant. In December 1973, the case was classified as “cash and vendor”.

EXAMPLE 2: On December 9, 1973 after he received an $85 OAA grant, Mr. Brown entered a nursing home. He was approved for vendor December 21. Although Mr. Brown received a cash grant as well as vendor in December 1973, his case was NOT classified as a “cash and vendor” case.

These instructions apply only to those cases properly classified as “cash and vendor” (i.e. EXAMPLE 1).

The majority of these cases are classified as SSI-SP cases. As such, they are included in the non-reduction requirements covering other SSI-SP cases. This means that as long as the claimant receives an SSI payment, the SP grant cannot be reduced. If the claimant is NOT receiving an SSI payment, the case is classified as an SP-Only case and is subject to grant reductions as income increases. Remember: the Social Security cost of living adjustments since July 1975 are excluded.

These are the ONLY cases in which both a cash and vendor payment may be made.

0740.005.00 RESPONSIBILITY TO THE CASH AND VENDOR CLAIMANT

To guarantee that the primary objectives for the cash and vendor claimant are met, be sure that:

  1. the claimant's higher level of payment for personal needs in effect in December 1973, is protected;
  2. the claimant makes available to the vendor any income in excess of the personal need in effect in December 1973; and
  3. the claimant continues to receive the SP payment.

0740.005.05 Personal Need Standard for Cash and Vendor Cases

The current personal need standard for all vendor cases is $30. This standard applies to all vendor claimants, including those who were eligible for vendor only in December 1973. The only exception to the $30 personal need standard is the December 1973 cash and vendor cases.

Since the personal need standards in effect in December 1973 differed according to category, the instructions for cash and vendor cases differ according to the category (OAA, PTD, AB) under which the claimant was approved.

Personal need standards in effect in December 1973 are as follows:

  1. The personal need standard for PTD/Vendor cases was $30 (an $18 personal standard and a $12 medical standard).
  2. The personal need standard for OAA/Vendor cases was $41 (the $30 standard and an $11 adjustment by policy).
  3. The personal need standard for AB/Vendor cases was $88 (an $18 personal standard, a $12 medical standard, and a $58 special standard for the blind). In addition to the higher personal standard, the AB cash and vendor cases are further complicated by the fact that if there was any deficit on the budget, the AB claimant was eligible for the maximum AB grant ($110 in December 1973.)

NOTE: In some cases, the claimant may have been allowed the cost of house payments, rent, or other special allowances in addition to the above standards. It is important to protect the valid personal need standard that was in effect in December 1973, even if it exceeds the $30, $41, or $88 listed above.

0740.005.10 Guarantees Made to the AB Cash and Vendor Claimant

In handling AB cash and vendor cases, two separate guarantees were made to these claimants.

  1. The right to an SP grant to maintain the claimant's December 1973 EIL.

    EXAMPLE 1: Ms. Brown was receiving a $110 cash grant and vendor payments in December 1973 based on AB categorical requirements. Her income consisted of $63 OASDI and $110 AB. Her EIL is $173. She was not eligible for SSI because of her OASDI income. Therefore, she began receiving a $110 SP grant in January 1974 to maintain her $173 EIL.

  2. The claimant's right to retain $88 for personal needs.

    EXAMPLE 2: In EXAMPLE 1: Ms. Brown's surplus amount was also computed. Based on December 1973 budgeting procedures, Ms. Brown was allowed an $88 personal needs expense. Any income she had in excess of this amount had to be paid to the nursing home. Ms. Brown had income of $173. Since she was allowed to keep $88 for her personal needs, she had to pay $85 ($173 - $88 = $85) to the nursing home.

0740.010.00 LOSS OF CASH AND VENDOR STATUS

The December 1973 cash and vendor claimant has the same income guarantees as any other SSI-SP or SP claimant; that is, the claimant's December 1973 EIL must be maintained.

An OAA/PTD Cash and Vendor claimant ineligible for SSI based on income, is normally ineligible for SP. Since SSI deducts $20 from the claimant's income before determining the amount of SSI payment, the claimant must have $45 income (excluding the SP grant) before becoming ineligible for SSI. Since this $45 is above $30 and the $41 EIL, no supplemental payment is made. The claimant is ineligible for SSI-SP and SP. If the claimant remains eligible on all other factors, process the case as a MA vendor case.

If the claimant does not request a hearing, take the following actions.

  1. Submit the change.
  2. Complete an Approval, Adjustment and Reinvestigation Letter to the nursing home. Since the claimant is no longer in a cash and vendor situation, the allowable expense figure is $30 rather than $30/$41.

If the AB cash and vendor claimant becomes ineligible for SSI, he continues to be eligible for an SP grant. Transfer the claimant to SP. As an SP-Only recipient, the claimant's SP grant can be reduced.