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PROGRAM POLICY BULLETIN 2003-006

PPB 2003-006 10-1-2003

EFFECTIVE SUBJECT

October 1, 2003 1. CDC • Authorized Care Decrease • Joint Custody - CIMS Coding • Updated Forms and Publications Exhibits • CDC 4C Agencies List Updated • CCDF State Plan FIP • Group Composition - Legal Guardian • Caretaker Definition • Income Budgeting and LOA2 Screen Changes SER • Good Cause • Income • Meeting Needs Beyond SER Program Limits • Utility Service • Home Ownership & Home Repair Services • Burials • Miscellaneous FAP • Citizenship/Alien Changes • Sponsored Alien Consent • Elimination of Shelter Proration • Annual Cost of Living Increases • FIA-1380, Food Assistance Complaint Report • Simplified Reporting Medicaid • Delayed Implementation of MA Programs • Group 2 Caretaker Relatives • Irrevocable Funeral Contract Limit - FIP, SDA, MA • Forms Employment & Training • FAP Reimbursement - All Programs • PEM 232 Exhibit - All Programs • Authorization of ESS - FIP, CDC, MA, FAP Families • FAP Refusing Employment - FAP • Forms - FIP, RAP, CDC, MA, FAP Families • Vehicle Purchase - FIP, CDC, MA, FAP Families • Vehicle Repair - FIP, CDC, MA, FAP Families • Other - All Programs SDA Disability Updates Miscellaneous • Internet Applications - All Programs • Administrative Hearing Withdrawals - All Programs • Recoupment • Interstate Claims - FIP, SDA, FAP • EBT Expungements - FAP
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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Issued: 8-15-2003 Distribution:

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PROGRAM POLICY BULLETIN 2003-006

PPB 2003-006 10-1-2003

• • • 1) CDC Authorized Care Decrease

FAP Issuance Codes Transparent County Lines County Office Consolidation

PAM 908; PEM 705, 710; RFF 712 The maximum amount of authorized care is now full-time, 100 hours. ‘Over time care’, 140 hours, is no longer authorized. Authorized care will still be based on the valid need hours of the Parent/Substitute Parent with the least number of need hours. This change will take effect with pay period 321 which has a begin date of 10/5/2003. Notices will be sent to all providers and CDC customers affected by this change. Old Policy: Over time care, 140 hours, could be authorized Reason: Budgetary constraints

Joint Custody CIMS Coding Instructions

PAM 908 Clarification has been added as to how to code Joint Custody cases when a parent is a minor parent. The minor parent's parent or legal or legal guardian must be added to the other parents CDC Program Group using the Add a Member process in ASSIST. Reason: Rewritten to meet IRS guidelines.

Updated Forms and Publications Exhibits

Exhibits are updated in the Reference Forms & Publications (RFF) manual for: • • • • • • • FIA-220, Day Care Aide/Relative Care Provider Application FIA-4583, Child Development and Care (CDC) Application (English and Spanish versions) FIA-4640, Child Development and Care Applicant Instructions (English and Spanish versions) FIA-4690, Child Development and Care Customer Notice (English and Spanish versions) FIA-4782, Child Development and Care Early Payment Certification FIA Pub. 230, Provider Handbook and Reporting Instructions FIA Pub. 798, Michigan Cares for Today’s Child (English and Spanish version)
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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PROGRAM POLICY BULLETIN 2003-006

PPB 2003-006 10-1-2003

• • • CDC 4C Agencies List Updated

FIA Pub. 872SP, ABCs - Most Frequently Asked Questions (Spanish version) FIA Pub. 874SP, ABCs Step-By-Step Instructions for Telephone Billing (Spanish version) FIA Pub. 879SP, ABCs Step-By-Step Instructions for Internet Billing (Spanish version)

RFS 120 The CDC 4C Agency information was updated in the Reference Schedules Manual (RFS) to show current information. PEM 100 Information is added about the Child Care And Development Fund (CCDF) State Plan. Reason: Item updated to add State Plan information for the CDC Program to match State Plan information given for other programs

CCDF State Plan

2) FIP Group Composition Legal Guardian

PEM 210, PAM 420 When a legal guardian is receiving FIP for a child(ren), and the parent returns to the home, the parent must be added to the FIP and the legal guardian must be made a third-party payee. This applies whether or not the legal guardian resides with the FIP group and continues until guardianship is terminated. Reason: Assures that assistance issued for a child goes to the person designated by a court as legally responsible for the child

Caretaker Definition Income Budgeting and LOA2 Income Screen Changes

Glossary (PRG) Added definition of caretaker to glossary. FIP, SDA, CDC, FAP PEM 500, 505, 556; PAM 705, 715, 720; RFF FIA-38, FIA-4500 Changes to income budgeting policy and LOA2 income screens were effective September 1, 2003, as detailed in Interim Program Policy Bulletin 2003-005. This bulletin updates the manuals with the revised items.

3) SER Good Cause SER 204

STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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PPB 2003-006 10-1-2003

When determining good cause ES and previously issued SER payments cannot be used to make required payments. Reason: Clarification Income SER 206 The additional income need standard allowance for group sizes that exceed 6 was inadvertently omitted in a previous revision. Meeting Needs Beyond SER Program Limits Utility Services SER 209 The LIHEAP Poverty Income Guidelines have been updated for fiscal year 2004. SER 302 The section on charges for deliverable fuels has been moved to SER 301, Energy Services. Home Ownership & Home Repair Services SER 304 Eligibility requirements have been clarified. Not all requirements apply to each service. The requirement that the home not be in jeopardy of loss only applies to home repair services. The total amount of past due taxes limit of $2000 only applies to home ownership services for taxes. SER 306 Burial rates have been reduced 15% across the board. Miscellaneous SER 301, 305, 306, 402; RFF 849, 1419, 4418 Cosmetic changes for easier reading, minor wording changes and updated form exhibits and instructions. 4) FAP Citizenship/Alien Changes PEM 225 The last of the Farm Bill changes relating to citizenship are enacted effective October 1, 2003. This change restores benefits to legal resident alien children under 18 years of age, regardless of their date of entry. For applications pending prior to October 1, 2003, add eligible children effective October 1, 2003. For active cases beginning October 1, 2003, add the children to the eligible group the next time the case is handled, but no later than the next redetermination. Reason: Farm Bill requirements
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

Burials

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Old Policy: Legal resident alien children under 18 years of age did not receive assistance unless they entered the United States prior to August 22, 1996. Sponsored Alien Consent PEM 226 Sponsored aliens must provide written consent before any information is released to the Attorney Genera or the alien’s sponsor. Staff must advise the sponsored alien of the consequences of not providing consent. Failure to provide consent will cause ineligibility to the alien and possibly the entire group. Reason: Federal clarification Elimination of Shelter Proration PEM 554 Michigan received waiver approval from FNS to eliminate shelter proration regardless of the reason for proration. This policy change is effective October 1, 2003. Cases whose shelter is currently prorated now receive full shelter costs. Update these cases the next time the case is handled or at the next redetermination, whichever occurs first. Reason: Waiver approval Old Policy: Multiple household groups sharing shelter expenses required proration of their shelter expense Mandatory shelter expense proration for certain disqualified group members Annual Cost of Living Increases PAM 904; PRT 250, 255, 260 The annual cost-of-living update for FAP Heat and Utility Standards, Income Limits and benefit issuances runs after the close of business on September 30, 2003. Report XF-009 will list the new updated case benefits. Additionally, the report identifies those cases that closed due to the update. LOA2 is updated to support the cost-of-living changes. Use the old standard amounts for any budgets completed and entered on CIMS prior to the update. Reason: Annual Federal cost-of-living changes FIA-1380, Food Assistance Complaint Report PAM 105, RFF 1380 The FIA-1380, Food Assistance Complaint Report has been revised. Please see PAM 105 for instructions as to when the form is completed. Reason: Revision of the form.
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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Simplified Reporting

PAM 715 Explained the OI begin date for SR groups and clarified when recoupment is not necessary. Reason: Policy questions from the field.

5) MEDICAID Delayed Implementation of MA Programs DCH has delayed the implementation of the following: • • • Group 2 Caretaker Relatives Adult Benefit Waiver, ABWI - State Medical Program (SMP) conversion to the Adult Medical Program (AMP) Adult Benefit Waiver, ABWII - Phase II of AMP conversion MIChild conversion to Healthy Kids

MA - PEM 135, 536 Due to a federal court order, FIA changed the way income is budgeted for non-parent Caretaker Relatives. See L-03-039. PEM 536 has been updated. Reference to Group 2 Caretaker Relative eligibility if the month being tested is after February 2003 has been removed from policy. Customers may be referred to the Medical Services pages in the FIA Website, New Medicaid Rules May Help You for more information.

Irrevocable Funeral Contract Limit

FIP, SDA, MA PAM 805 The amount allowed for irrevocable prepaid funeral contracts has increased. The maximum is calculated as follows: • • $10,257 MINUS the amount already assigned to pay beneficiary’s funeral expenses under either: •• •• a life-insurance-funded funeral, or an annuity-funded funeral

Note: An annuity can be used to fund a funeral plan the same as life insurance. • EQUALS the allowable amount.

The $10,257 amount is $2,000 over the amount Michigan law allows a person to assign for funeral expenses under a life insurance policy. The $10,257 limit will increase June 1st each year by the amount the
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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PROGRAM POLICY BULLETIN 2003-006

PPB 2003-006 10-1-2003

Department of Consumer and Industry Services increases the limit for life insurance. Reason: Act 325 of Michigan Public Acts of 2002 Old Policy: The limit on irrevocable funeral contracts was $10,050. Note: FIA is not responsible for reviewing the amount in a life-insurance or annuity-funded funeral, except as described above for the limit on irrevocable funeral contracts. Forms RFF FIA-1075, 1150, 1555; MDCH-201, 213, 617, 1111-15 The following forms have been revised: • • • • • • • 6) EMPLOYMENT & TRAINING FAP Reimbursement FIA-1075, TMA-Plus Eligibility Notice FIA-1150, Application Eligibility Notice FIA-1555, Authorization to Release Protected Health Information MDCH-201, Your Rights and Responsibilities MDCH-213, TMA Plus, Extending your Health Care Coverage MDCH-617, Medicaid Spend-Down Information MDCH-1111-15, Michigan Medicaid Program

PEM 232 – All Programs The FAP Employment and Training Reimbursement maximum that covers tools, transportation or clothing has increased from $25 to $50 per month. Time-Limited Food Assistance (TLFA) recipients choosing Self-Initiated Community Service are now eligible to receive the FAP Reimbursement from FIA. Enter all FAP Reimbursements on MIS to ensure that duplicate reimbursements are not authorized. Reminder: The FAP reimbursement (as well as any DSS RAP payment) will not reduce the county DSS allocation. The Account and PCA codes outlined in the PEM 232 Exhibit will ensure that the FAP Reimbursement and RAP payments are paid from other funding sources. Reason: To increase the amount of the reimbursement and to expand eligibility to include TLFA customers.

PEM 232 Exhibit

Review the Exhibit at the back of PEM 232. Account coding did not change, but clarifications have been made. This includes Bulk Purchases and DSS Local Administrative expenses. All references and coding to support PZ funding is removed. Special Attention Regarding Contracts: Please be advised that the old PZ Contract PCA 81189 will be obsolete effective March 31, 2004.
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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All of the charges appearing for this account number are COUN contracts that will expire on March 31, 2004. No new contracts should be written using this PCA number. Refer to the Exhibit in PEM 232. Reason: PZ funding was eliminated in the FY 2004 budget Authorization of ESS FIP, CDC, MA, FAP Families FIA may now authorize ESS for customers who are participating in an MWA activity when both FIA and the MWA agree that it is in the customer’s best interest to have FIA make the support service payment. FIA and MWA staff should locally determine when and under what circumstances this should occur. Services previously authorized by the MWA may now be paid by FIA due to MWA funding restrictions or funding shortages. Local offices will need to make the final decision as to whether there is sufficient funding available in their DSS allocation to support the payment. FAP Refusing Employment PEM-233B, FAP Non-deferred adult members of FAP households that voluntarily reduce work hours, quit a job or are fired without good cause, must serve an employment-related penalty. Previously a penalty applied when the customer refused work of 20 or more hours per week. The new obligation is 30 hours per week. The FAP compliance test required hours remains at 20. The “Comparable Work” good cause reason and “REESTABLISHING FAP ELIGIBILITY” is also updated to reflect a new definition. Forms FIA-110, DSS Repay Agreement - new form FIP, RAP, CDC, MA, FAP Families When authorizing auto insurance premium payments, it is now required that an FIA-110, DSS Repay Agreement accompany payments to insurance providers. The customer must sign the form to ensure that FIA has the recovery rights in the event the insurance policy is canceled before the expiration of the policy term. Send the original FIA-110 to Accounting with the FIA-4663, Employment and Training Expenditure Authorization, for processing. A copy of the FIA-110 should be retained in the case record. Reason: Auto insurance companies are reporting an increase in the volume of customers who cancel their auto insurance after FIA pays the premium and the customer received the premium balance. FIP, TLFA FIA-2439, Work First Referral The Word version of the FIA-2439, Work First Referral will be obsolete effective October 1, 2003.
STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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PROGRAM POLICY BULLETIN 2003-006

PPB 2003-006 10-1-2003

Vehicle Purchase

FIP, CDC, MA, FAP Families Policy is clarified to specify that a vehicle purchase does not include lease vehicles.

Vehicle Repair

FIP, CDC, MA, FAP Families Policy is clarified to specify that vehicle repairs may be authorized for leased vehicles if there are at least 12 months left in the lease agreement.

Other

All Programs Several manual items are updated to reflect policy or notices issued prior to the release of the October bulletin.

7) SDA DISABILITY

PEM 261 The following Note was added to remind specialists to check all disability criteria before initiating closure: Note: If the customer’s circumstances change so that the basis of his/her disability is NO longer valid, determine if he/she meets any of the other disability criteria. Do NOT simply initiate case closure. Reason: Specialists were not always checking for a disability when a customer would lose eligibility from MRS or when there is Special Education involvement. The TPQY response was changed to Wire Third Party under Verification Sources. Reason: To bring policy up to date with current terminology

8) MISCELLANEOUS Internet Applications All Programs PAM 110 The FIA-1171, Assistance Application and the FIA-1171F, Filing Document (in both English and Spanish), are now available in the Family Independence Agency (FIA) website in the Doing Business with FIA > Forms location. The URL is: http://www.michigan.gov/fia/0,1607,7-124-5455_7338--,00.html. Reason: FNS Regulations as a result of the Farm Bill implementation.

STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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PROGRAM POLICY BULLETIN 2003-006

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Administrative Hearing Withdrawals

ALL PROGRAMS PAM 600 Procedural changes for processing hearing withdrawals have changed to expedite the withdrawal process. Reason: Procedural change to allow both local offices and AH to operate more efficiently and economically.

Recoupment

RFF FIA-4630 and FIA-4702 Language added so the customer has a clear understanding of their rights and penalties regarding an Intentional Program Violation (IPV) and the Disqualification Hearing Process. Reason: Clearer understanding for the customer of their rights and penalties.

Interstate Claims

FIP, SDA AND FAP PAM 725 Claims continue to be collected when a household moves out of Michigan. Added policy that was inadvertently left out.

EBT Expungements

FAP PAM 401E, PAM 406 Policy in PAM 401E and PAM 406 are clarified to show that specialists could replace expunged FAP benefits using issuance code 950 upon customer requests. Reason: Clarification

FAP Issuance Codes

SIC I, (FATP Transaction) The FATP issuance codes were transferred into a table that gives a description and special issuance information for the issuance codes. Included in the table is a reference to the issuance codes that are used for issuing Supplemental Food Assistance Benefits.

STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY

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Transparent County Lines

All Programs PAM 110 Policy regarding where a person may apply and where the application is processed is revised to reflect policy for counties participating in the Transparent County Line Pilot Project. Customers in these counties may apply for benefits and be serviced by a county other than the county in which the customer lives. For additional information, see L-03-083 dated May 30, 2003, announcing the pilot project, and VDT #03-030 dated June 27, 2003.

County Office Consolidation Grand Traverse/ Leelanau

SIC, C (County/District) Effective June 11, 2003 the Grand Traverse (28) and Leelanau (45) County offices were consolidated using county code 28. Note: Children’s Services cases continue to be assigned to county code 45.

Charlevoix/ Emmet

Effective July 7, 2003 the Charlevoix (15) and Emmet (24) County offices were consolidated using county code 24 Note: Children Services cases continue to be assigned to county code 15.

New Wayne County Districts

Wayne County has 2 new district offices effective August 18, 2003: • • Lafayette General Services Administration, District 58 Fort/Wayne Lafayette Medical, District 82

STATE OF MICHIGAN FAMILY INDEPENDENCE AGENCY


				
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