Standard Medical Deductions
To be eligible for a standard medical deduction, the SNAP unit must contain a qualifying member (age 60 or older or disabled) and verify that they have more than $35 per month in allowable medical expenses, see PM 13-01-05-a.
The Standard Medical Deduction for residents of Group Homes or Supportive Living Facilities (SLF) is $485 a month.
The Standard Medical Deduction for all other eligible SNAP units is $245.
When a SNAP unit containing a qualifying member, see PM 05-06-01, files an initial application for SNAP and the qualifying member has allowable medical expenses, see PM 13-01-05-a, or an active case containing a qualifying member reports medical expenses, verify the medical expenses exceed $35 a month. If the medical expenses do not exceed $35 a month, the unit is not entitled to a medical expense deduction. If the medical expenses exceed $35, then allow the appropriate Standard Medical Deduction:
- Code $485 in the Amount column for Item 80 code TME and a G in the Supplied By for residents of Group Homes/SLFs; or
- Code $245 in the Amount column for Item 80 code TME and a S in the Supplied By for all other SNAP units.
Using Actual Medical Expenses Instead of a Standard Medical Deduction
SNAP units with allowable medical expenses over $485 for residents of Group Homes/SLFs or $245 for all other units may choose to use actual medical expenses instead of the Standard Medical Deduction. If the SNAP unit claims that their monthly medical expenses exceed the appropriate standard, verify their total monthly medical expenses. Once the unit has verified their total monthly medical expenses, allow the actual medical expenses instead of the Standard Medical Deduction. Code the total allowable medical expenses in the Amount column for Item 80 code TME and an A in the Supplied By.
If the unit verifies that medical expenses exceed $35 but fails to verify total monthly medical expenses, allow the appropriate Standard Medical Deduction. If the unit fails to verify any medical expenses, the unit is not entitled to a medical expense deduction.
Determining the Amount of Medical Expense for Group Home Services
Determine what portion of the client's income is retained by the group home and used for shelter expenses. Count the rest of the amount the group home keeps as a medical expense. Accept the group home's statement as verification of shelter expenses. If an additional medical expense is claimed, such as health insurance, verification must be provided.
Example 1: The group home where Ms. K lives keeps $514 of her $564 SSI for her care and state that $0 is for shelter expenses. Budget $514 as code 352 TME for medical expenses with an A in the Supplied By.
Example 2: Mr. B is a resident of a group home. Of Mr. B's $580 SSA check, the group homes keeps $530 for his care. The group home states that his shelter expense is $300. Mr. B reports and verifies that he pays $35 per month in a private medical insurance policy. Budget $300 as code 345 HC for shelter expenses. The group home medical expense amount is $230 ($530 - $300 = $230). Add the $35 private medical insurance amount to the group home medical expense to get the total medical expenses ($230 + $35 = $265). Since $265 is less than the Standard Medical Deduction for group home, $485, code $485 in 352 TME with a G in Supplied By.
Example 3: Ms. G lives in a group home. She is employed and earns $120 per month. Her monthly SSI check is $564. Between her earnings and SSI check, the group home keeps a total of $547 for her care. The group home states that $250 is for shelter expenses. Budget $250 for shelter expenses as code 345 HC, and allow the $485 Standard Medical Deduction since $297($547 - $250 = $297) is less than the Standard Medical Deduction for group homes.
Supportive Living Facility (SLF) Medical Expense
For a Supportive Living Facility (SLF) resident receiving Medical, use the credit amount determined for Medical eligibility as the amount of the actual medical expense for SLF. This is shown on Form 552 as code 395 GCARE.