[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7690]


[[Page Unknown]]

[Federal Register: March 31, 1994]


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ACTION

45 CFR Parts 1207 and 1208

 

Senior Companion/Foster Grandparent Income Eligibility

AGENCY: ACTION.

ACTION: Final rule.

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SUMMARY: This rule makes final the provisions of a proposed rule 
published in the Federal Register on September 2, 1993 (58 FR 46602) 
amending income eligibility regulations governing participation in the 
Senior Companion Program (SCP) and the Foster Grandparent Program 
(FGP). This amendment (1) decreases the current inequities in 
determining income eligibility by being more responsive to the special 
economic conditions affecting the elderly and (2) emphasizes the 
Programs' focus on recruiting low-income individuals. The effect of 
this amendment will be to meet more fully the FGP/SCP goals of 
targeting low-income seniors and of taking into account circumstances 
appropriate to local situations.

DATES: Effective date: May 2, 1994.
    Implementation date: Provisions in Secs. 1207.3-5(a)(3) and 1208.3-
5(a)(3) will be implemented upon publication of the 1994 FGP/SCP notice 
of income eligibility in the Federal Register.

FOR FURTHER INFORMATION CONTACT:
Thomas E. Endres at 202-606-5000.

SUPPLEMENTARY INFORMATION:

I. Background

    Authorized under sections 211 and 213 of the Domestic Volunteer 
Service Act of 1973, Public Law 93-113, as amended, the Senior 
Companion Program and the Foster Grandparent Program provide volunteer 
opportunities to low-income people age 60 and over. Administratively, 
these programs are similar. Programatically, however, they differ as 
SCP volunteers serve adults, primarily the frail elderly, while FGP 
volunteers serve children and youth with special and exceptional needs.
    Since these programs were authorized--FGP in 1965; SCP in 1973--
there have been few changes to the income eligibility requirements. In 
1968, the Office of Economic Opportunity (OEO), which then administered 
FGP, required that FGP use the OEO poverty income guidelines in 
determining applicant eligibility. At that time, income eligibility was 
based on 100 percent of the poverty level.
    In 1974, the amount of Supplemental Security Income (SSI) provided 
by states was used as a new factor in determining income eligibility 
for people who lived in high cost-of-living areas so that they might 
participate in the Programs.
    In 1976, ACTION published an ACTION Order which added a definition 
section to policy, including definitions for ``family,'' ``income'' and 
``poor or low-income person.''
    In 1978, Congress amended the Act to increase FGP/SCP income 
eligibility levels to 125 percent of poverty.
    In 1983, regulations revising income criteria were published in the 
Federal Register. They required that the income of all household 
members, rather than family members, be counted when determining annual 
income. They also limited to one the number of household members who 
could receive a stipend.
    This rule modifies FGP/SCP income eligibility criteria. It 
addresses a number of problems: Cost-of-living differences within and 
among States; limitations inherent in the current definition of 
``household''; absence of special consideration for individuals at or 
below 100 percent of poverty; and failure to allow certain medical 
expenses in the determination of income eligibility.

II. Participation in the Rulemaking

    In September 1991, the Director of ACTION appointed an Older 
American Volunteer Program Income Eligibility Task Force. Membership 
included representatives from ACTION headquarters and field offices as 
well as Senior Companion and Foster Grandparent project directors. 
Their deliberations resulted in the development of this rule.

III. Comments

    A notice of proposed rulemaking was published in the Federal 
Register on September 2, 1993, with an October 18, 1993, deadline for 
submission of comments. The Agency received a total of five letters--
four from project directors and one from an executive director of a 
program grantee. One project director's comments enthusiastically 
endorsed the proposed rule. The others had concerns relating to the 
definitions of ``annual income'' and ``allowable medical expenses.'' 
Some commenters also expressed concerns about the cost-of-living 
adjustments. Those suggestions and the Agency's response to them are 
discussed below.
Sections 1207.1-2 and 1208.1-2 Definitions. Allowable medical expenses; 
annual income

Allowable Medical Expenses

    Two project directors commented that the 15 percent cap on medical 
expenses should not be absolute. One suggested that project directors 
be given some discretion to take into consideration ``extraordinary 
medical expenses'' in the applicant's family. Another stated that ``a 
15 percent cap on allowable medical expenses discriminates against 
prospective FGP volunteers unfortunate enough to have medical costs 
exceeding this 15 percent cap.''
    The final rule will, for the first time in the Programs' histories, 
allow medical expenses to be a factor in the computation of income 
eligibility by allowing up to 15 percent of medical expenses to be 
excluded under certain circumstances. This limit provides some 
flexibility and consideration to medical costs while maintaining the 
Programs' low-income focus and legislative mandate.

Annual Income

    One commenter questioned a provision in the definition of ``annual 
income'' which states that ``Project directors may count the value of 
shelter, food, and clothing, if provided at no cost by persons related 
to the applicant, enrollee, or spouse.''
    The commenter was concerned about two potential ``inequities'' 
which might result: (1) That project directors would have discretion to 
decide whether or not to ``count'' this income source and (2) that 
different project directors would use different approaches in 
determining this in-kind support.
    These costs vary and depend upon each applicant's personal 
circumstances. Consequently, they require individual consideration. The 
Agency believes project directors can exercise discretion in deciding 
appropriate inclusion of in-kind costs for housing, food, and clothing. 
Further, the Agency believes that any attempt to issue specific 
guidance in this area would be unnecessarily burdensome, and would 
undermine local project operation. The Agency also believes that FGP/
SCP project directors can make reasonable determinations and exercise 
prudent judgment to implement this provision.
Sections 1207.3-5(a)(3)  Senior companions and 1208.3-5(a)(3)  Foster 
grandparents
    One commenter recommended inclusion of an adjustment for excessive 
housing costs, in addition to the new medical adjustments. Another 
commenter suggested that the income eligibility level for FGP/SCP 
volunteers be in keeping with Housing and Urban Development (HUD) low-
income guidelines. These suggestions were not adopted because the 
Agency believes that the system proposed considers both housing costs 
and incomes within particular areas. Any further income exclusions 
would significantly dilute and diminish the Programs' focus on the low-
income elderly.
Sections 1207.3-5  Senior companions (a) (3) and (4) and 1208.3-5  
Foster grandparents (a) (3) and (4)
    One commenter stated that it was necessary for the Agency to assure 
that provisions in paragraph (3) pertaining to the application of the 
VISTA subsistence rate allowance be referenced in paragraph (4) thus 
assuring that enrollees would not be jeopardized in the computation of 
the allowed 20 percent.
    The Agency does not see this as a problem. The final rule restates 
existing language governing eligibility of enrollees. Paragraph (4) 
states that ``Once enrolled, a Senior Companion/Foster Grandparent 
shall remain eligible to serve and to receive a stipend as long as his 
or her annual income, after deducting allowable medical expenses, does 
not exceed the prescribed ACTION income eligibility guideline by 20 
percent.'' The new provision, allowing the prescribed ACTION income 
eligibility guideline to vary by an additional 10 percent in high cost 
areas, merely sets a new base and does not affect the provisions in 
paragraph (4).

IV. Impact of the Rule

    The adjustment to the annual income guidelines embodied in this 
final rule will:

--Emphasize the Programs' focus on low-income seniors.
--End the situation where a few States, by applying an SSI 
supplementation, could potentially have a volunteer pool that is not 
adequately comprised of low-income seniors.
--Provide a more equitable system that, to the extent possible, 
accounts for real differences in cost of living within and among 
states, as required.
--Provide a system that is simple and easy to administer. FGP/SCP would 
obtain the most current VISTA subsistence rates which identify high 
cost areas and use them to determine income eligibility levels in those 
areas.

    It will also provide opportunities to groups of low-income seniors 
who may have been previously excluded from the Programs including:

--Low-income seniors who live with, but receive no support from, 
relatives.
--Low-income seniors who live with roommates to save money.
--Seniors who live on low-incomes after paying out-of-pocket medical 
expenses.

List of Subjects in 45 CFR Parts 1207 and 1208

    Aged, Grant programs-social programs, Reporting and recordkeeping 
requirements, Volunteers

Final Rule--Senior Companion Program

    For the reasons set out in the preamble, 45 CFR part 1207 is 
amended as set forth below.

PART 1207--SENIOR COMPANION PROGRAM

    1. The authority citation for part 1207 continues to read as 
follows:

    Authority: Sec. 211(d); (e); 213, 221, 222, 223 and 402(14) of 
Pub. L. 93-113, 87 Stat. 402, 403, 404, and 414, sec. 213 of Pub. L. 
97-35, 97 Stat. 487, 42 U.S.C. 5011 (b), (d) and (e); 5021, 5022, 
5023, 5042(14), and 5013.

    2. Section 1207.1-2 is amended by removing the definition of 
Household and by adding the following definitions in alphabetical 
order:


Sec. 1207.1-2  Definitions.

* * * * *
    Allowable medical expenses are annual out-of-pocket expenses for 
health insurance premiums, health care services, and medications 
provided to the applicant, enrollee, or spouse and were not and will 
not be paid for by Medicare, Medicaid, other insurance, or by any other 
third party and, shall not exceed 15 percent of the applicable ACTION 
income guideline.
    Annual income is counted for the past 12 months and includes: The 
applicant or enrollee's income and, the applicant or enrollee's 
spouse's income, if the spouse lives in the same residence. Project 
directors may count the value of shelter, food, and clothing, if 
provided at no cost by persons related to the applicant, enrollee, or 
spouse.
* * * * *
    3. Section 1207.3-1 is amended by adding a paragraph (v) reading as 
follows:


Sec. 1207.3-1  Sponsor responsibility.

* * * * *
    (v) Assure that individuals whose income is at or below 100 percent 
of the poverty level receive special consideration for participation in 
the Program.

    4. Section 1207.3-5 is amended by revising paragraphs (a)(3), 
(a)(4), and (c)(5) to read as follows:


Sec. 1207.3-5  Senior Companions.

    (a) * * *
    (3) To be enrolled, a Senior Companion cannot have an annual income 
from all sources, after deducting allowable medical expenses, which 
exceeds ACTION's income eligibility guidelines for the state in which 
he or she resides. The ACTION income eligibility guideline for each 
state is 125 percent of the poverty line as set forth in section 625 of 
the Economic Opportunity Act of 1964, as amended by Pub. L. 92-424 (42 
U.S.C. 2971d), except (i) in those primary metropolitan statistical 
areas (PMSA), metropolitan statistical areas (MSA) and nonmetropolitan 
counties identified by the Director as being higher in cost of living, 
as determined by application of the VISTA subsistence rates, in which 
case the guideline shall be 10 percent above that amount; and (ii) in 
Alaska, where the guideline may be waived by the ACTION State Director 
for individual locations if a project demonstrates that low-income 
individuals, in that location, are participating in the project. No 
Senior Companion currently participating in the Program, shall become 
ineligible as a result of this change in guidelines.
    (4) Once enrolled, a Senior Companion shall remain eligible to 
serve and to receive a stipend as long as his or her annual income, 
after deducting allowable medical expenses, does not exceed the 
prescribed ACTION income eligibility guideline by 20 percent. Income 
eligibility shall be reviewed annually by the sponsor.
* * * * *
    (c) * * *
    (5) Stipends. A Senior Companion will receive a stipend in an 
amount determined by ACTION and payable in regular installments. The 
minimum amount of the stipend is set by law and may be adjusted by the 
Director from time to time. When both the eligible husband and wife 
serve as a Foster Grandparent or Senior Companion, only one spouse 
shall be entitled to receive a stipend. Both spouses in such cases 
shall be entitled to other direct benefits. Only in cases where 
enrolled Foster Grandparents or Senior Companions marry, may each 
continue to receive a stipend.
* * * * *

Final Rule--Foster Grandparent Program

    For the reasons set forth in the preamble, 45 CFR part 1208 is 
amended as follows.

PART 1208--FOSTER GRANDPARENT PROGRAM

    5. The authority citation for part 1208 continues to read as 
follows:

    Authority: Secs. 211(a), 221, 222, 223, and 402(14) of Pub. L. 
93-113, 87 Stat. 402, 403, 404 and 414, 42 U.S.C. 5011 (a) and (f), 
5021, 5022, 5023 and 5042(14).

    6. Section 1208.1-2 is amended by removing the definition of 
Household and by adding the following definitions in alphabetical 
order:


Sec. 1208.1-2  Definitions.

* * * * *
    Allowable medical expenses are annual out-of-pocket expenses for 
health insurance premiums, health care services, and medications 
provided to the applicant, enrollee, or spouse and were not and will 
not be paid for by Medicare, Medicaid, other insurance, or other third 
party and, shall not exceed 15 percent of the applicable ACTION income 
guideline.
    Annual Income is counted for the past 12 months and includes: The 
applicant or enrollee's income and, the applicant or enrollee's 
spouse's income, if the spouse lives in the same residence. Project 
directors may count the value of shelter, food, and clothing, if 
provided at no cost by persons related to the applicant, enrollee, or 
spouse.
* * * * *
    7. Section 1208.3-1 is amended by adding a paragraph (v) reading as 
follows:


Sec. 1208.3-1  Sponsor responsibility.

* * * * *
    (v) Assure that individuals whose income is at or below 100 percent 
of the poverty level receive special consideration for participation in 
the Program.

    8. Section 1208.3-5 is amended by revising paragraphs (a)(3), 
(a)(4), and (c)(5) to read as follows:


Sec. 1208.3-5  Foster grandparents.

    (a) * * *
    (3) To be enrolled, a Foster Grandparent cannot have an annual 
income from all sources, after deducting allowable medical expenses, 
which exceeds ACTION's income eligibility guidelines for the state in 
which he or she resides. The ACTION income eligibility guidelines for 
each state is 125 percent of the poverty line as set forth in section 
625 of the Economic Opportunity Act of 1964, as amended by Pub. L. 92-
424 (42 U.S.C. 2971d), except: (i) In those primary metropolitan 
statistical areas (PMSA), metropolitan statistical areas (MSA) and 
nonmetropolitan counties identified by the Director as being higher in 
cost of living, as determined by application of the VISTA subsistence 
rates, in which case the guideline shall be 10 percent above that 
amount; and (ii) in Alaska, where the guideline may be waived by the 
ACTION State Director for individual locations if a project 
demonstrates that low-income individuals in that location are 
participating in the project. No Foster Grandparent currently 
participating in the Program, shall become ineligible as a result of 
this change in guidelines.
    (4) Once enrolled, a Foster Grandparent shall remain eligible to 
serve and to receive a stipend as long as his or her annual income, 
after deducting allowable medical expenses, does not exceed the 
prescribed ACTION income eligibility guideline by 20 percent. Income 
eligibility shall be reviewed annually by the sponsor.
* * * * *
    (c) * * *
    (5) Stipends. A Foster Grandparent will receive a stipend in an 
amount determined by ACTION and payable in regular installments. The 
minimum amount of the stipend is set by law and may be adjusted by the 
Director from time to time. When both the eligible husband and wife 
serve as a Foster Grandparent or Senior Companion, only one spouse 
shall be entitled to receive a stipend. Both spouses in such cases 
shall be entitled to other direct benefits. Only in cases where 
enrolled Foster Grandparents or Senior Companions marry, may each 
continue to receive a stipend.
* * * * *
    Dated: March 4, 1994.
James Scheibel,
Vice President, Corporation for National and Community Service, 
Director, ACTION.
[FR Doc. 94-7690 Filed 3-30-94; 8:45 am]
BILLING CODE 6050-28-M