The Social Security Administration (SSA) recently amended its Supplemental Security Income (SSI) regulations. This federal program provides financial assistance to elderly, blind, and disabled individuals with limited income and resources. There are eligibility requirements for those applying for SSI, including income and resource limits.
Approximately 7.4 million Americans receive support from SSI. The monthly maximum federal amounts in 2024 are $943 for individuals, $1,415 for couples, and $472 for essential persons. Some states, such as California, provide a state supplemental p.
Beneficiaries must generally earn less than $1,971 monthly from work and have less than $2,000 in resources per individual or $3,000 per couple, including money, bank accounts, property, and stocks.
Effective September 30, 2024, the amendment focuses on calculating In-Kind Support and Maintenance (ISM) and will significantly impact SSI recipients, particularly those from special needs families.
The Law Before the Amendment
Before the amendment, the SSA considered food and shelter when calculating ISM. ISM refers to the value of food, shelter, or other items provided to an individual for free or at a reduced cost. The value of ISM was factored into calculating an individual's SSI benefit amount, reducing the total benefit received.
The SSA used two rules to determine the value of ISM:
1. Value of the One-Third Reduction (VTR): If an individual lives in another person's household and receives food and shelter, the SSA reduces their SSI benefit by one-third of the Federal Benefit Rate (FBR).
2. Presumed Maximum Value (PMV): If an individual receives food or shelter (but not both) from another person, the SSA presumes that the ISM's value is one-third of the FBR plus $20.
The Law After the Amendment
Under the new final rules, the SSA will no longer consider food when calculating ISM. The calculation will focus solely on defined shelter expenses, including:
- Room
- Rent
- Mortgage payments
- Real property taxes
- Heating fuel
- Gas
- Electricity
- Water
- Sewerage
- Garbage collection services
This change means that the value of food provided will no longer be used to reduce the SSI benefit amount. However, the value of shelter expenses will still be considered and may reduce the SSI benefit.
Practical Impact of the Amendment
The new policy is easier to understand and use by applicants, recipients, and agency employees. There is less information to report about food assistance received from family and friends, removing a significant source of burden.
Reducing month-to-month variability in payment amounts will improve payment accuracy.
The amendment is expected to result in higher SSI benefit amounts for many who rely on the program for their basic needs. By removing food from the ISM calculations, the SSA acknowledges that food costs are a basic necessity that should not be used to reduce SSI benefits.
The amendment doesn’t eliminate the impact of ISM on SSI benefits. If someone receives shelter expenses, like living rent-free in a relative's home, the value of that shelter will still be considered in the ISM calculation, resulting in a reduction in the SSI benefit.
Impact on the Disability Community
The amendment is particularly beneficial for families who are eligible to receive SSI. Caring for a child with a severe disability involves high costs for medical care, therapy, and specialized equipment.
With the removal of food from the ISM calculations, the family's SSI benefit amount will no longer be affected by the value of the meals provided to the child. This change will result in a higher SSI benefit amount, helping the family cover the expenses associated with caring for a child with special needs and reducing the overall financial strain on the family.
Potential Challenges and Considerations
While the amendment is a positive step for SSI recipients, there are some potential challenges and considerations to keep in mind:
Awareness and Understanding: SSI recipients and their families need to be aware of the amendment and understand how it affects their situation. The SSA should provide clear guidance and educational materials to ensure recipients take full advantage of the changes.
Shelter Expenses and Calculations: Although food is no longer considered in ISM calculations, shelter expenses will remain. This means that some SSI recipients may still experience a reduction in their benefits due to the value of shelter provided to them.
Coordination with Other Benefits: SSI recipients may also receive other forms of assistance, like Medicaid or food stamps. Understanding how the changes to SSI regulations may interact with these other benefits is important, and it's critical to consult with qualified public benefit experts to assist.
Continued Advocacy: While the amendment addresses a significant issue for SSI recipients, other program areas may require further improvement or reform. Advocacy groups should continue working with policymakers to identify and address additional challenges SSI recipients and their families face.
Final Thoughts
The recent amendment to the SSI regulations is a positive step towards improving the financial well-being of SSI recipients. By removing food from the equation, the SSA is helping to ensure that SSI benefits more accurately reflect the needs of individuals who rely on this vital program for support.
While there may be further opportunities to improve the SSI program, this amendment represents a significant step forward in addressing the financial challenges SSI recipients and their families face.
