[Federal Register Volume 60, Number 2 (Wednesday, January 4, 1995)]
[Rules and Regulations]
[Pages 360-362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-115]



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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Social Security Administration

20 CFR Part 416

[Regulation No. 16]
RIN 0960-AC96


Supplemental Security Income for the Aged, Blind, and Disabled; 
Waiver of Parent-to-Child Deeming for Certain Disabled Children

AGENCY: Social Security Administration, HHS.

ACTION: Final rule.

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SUMMARY: This final rule implements section 8010 of the Omnibus Budget 
Reconciliation Act of 1989 which provides that a disabled child under 
age 18 who lives with his or her parent(s) will not have parental 
income or resources deemed to him or her if the child previously 
received a reduced supplemental security income (SSI) benefit (personal 
needs allowance) while a resident of a medical facility for which 
Medicaid paid more than 50 percent of the cost of the individual's 
care; the child is eligible for medical assistance under a Medicaid 
State home care plan; and the child would otherwise be ineligible for a 
Federal SSI benefit because of the deeming of the parents' income or 
resources. The rule also provides that, although deeming is waived in 
these circumstances, the in-kind support and maintenance provided by 
the parents will not be counted. Lastly, when such a child would not be 
ineligible because of the deeming of his parents' income but would 
receive a benefit of less than the amount payable under section 8010, 
the child's benefit will be $30 a month plus any optional State 
supplementation. Any of the child's own countable income will then be 
deducted from that amount.

EFFECTIVE DATE: This rule is effective January 4, 1995.

FOR FURTHER INFORMATION CONTACT: Sandy Bond, 3-B-1 Operations Building, 
6401 Security Boulevard, Baltimore, MD 21235, (410) 965-1794.

SUPPLEMENTARY INFORMATION: Section 1614(f)(2) of the Social Security 
Act (the Act), requires that, for purposes of determining eligibility 
for and the amount of SSI benefits, the income and resources of a child 
under age 18 be deemed to include the income and resources of a parent 
(or spouse of a parent) who is living in the same household as the 
child, except to the extent determined by the Secretary to be 
inequitable under the circumstances. Regulations at Sec. 416.1160 
through Sec. 416.1169 explain how we deem income and when it is 
inequitable to deem part or all of that income. Regulations at 
Sec. 416.1202 through Sec. 416.1204a explain how we deem resources.
    Section 8010(a) of Pub. L. 101-239 amended section 1614(f)(2) of 
the Act to provide that parental income and resources shall not be 
deemed to any child under age 18 who is disabled, received SSI benefits 
under section 1611(e)(1)(B) while in an institution described in that 
section, is eligible for medical assistance under a State home care 
plan approved by the Secretary under the provisions of section 1915(c) 
of the Act or authorized under section 1902(e)(3), and, except for this 
waiver of deeming, would not be eligible for a Federal SSI benefit. 
Section 8010(b) amended section 1611(e)(1)(B) of the Act to include 
eligible children as described in section 1614(f)(2)(B) of the Act, 
among those eligible for the SSI personal needs allowance. These 
provisions became effective June 1, 1990.
    The regulation provides that we do not deem parental income and 
resources to disabled children who:
     Previously received SSI personal needs allowance benefits 
while residents of a medical facility for which Medicaid paid more than 
fifty percent of the cost of the individuals' care;
     Are eligible for medical assistance under Medicaid State 
home care plans approved by the Secretary under the provisions of 
section 1915(c) of the Act or authorized under section 1902(e)(3); and
     Would otherwise be ineligible for a Federal SSI benefit 
because of the deeming of their parents' income and/or resources.
    The regulation also provides that children for whom the deeming 
rules are waived may be eligible to receive an SSI benefit up to the 
personal needs allowance (currently $30 monthly), plus an optional 
State supplement in certain States. The optional State supplement 
payable to a child for whom the deeming rules are waived will be 
determined by the State and, if the supplement is administered by the 
Federal government, set out in Federal/State agreements.
    Further, the regulation states that in-kind support and maintenance 
provided by a child's parent(s), which we do not count when deeming of 
parental income applies, also will not count when deeming of parental 
income is waived under section 1614(f)(2) of the Act. Otherwise, the 
counting of such in-kind support and maintenance could negate the 
beneficial effect of section 8010 of Pub. L. 101-239.
    Finally, the regulation addresses the situation of children who do 
not meet the criteria for waiver of deeming only because parental 
income is not high enough to make them ineligible for SSI benefits but 
is high enough to result in an SSI payment that is less than the amount 
that would be payable under section 8010 of Pub. L. 101-239. Under the 
regulation, such children would receive an SSI benefit up to the 
personal needs allowance plus any optional State supplement. Any of the 
child's own countable income would then be deducted from that amount. 
This change is being made under the Secretary's discretionary deeming 
authority in section 1614(f)(2)(A) of the Act which allows the 
Secretary to determine the extent to which deeming of parental income 
and resources is inequitable under the circumstances. This change is 
necessary to prevent anomalies from being introduced into parent-to-
child deeming.
    We published this regulation as a notice of proposed rulemaking 
(NPRM) on September 22, 1993, (58 FR 49249). The 60-day comment period 
ended on November 22, 1993. We received no comments and are adopting 
the regulation as proposed.

Regulatory Procedures

Executive Order No. 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that this rule does not meet [[Page 361]] the criteria 
for a significant regulatory action under Executive Order 12866. Thus, 
it was not subject to OMB review.

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities because it 
will affect only individuals and States. Therefore, a regulatory 
flexibility analysis as provided in Pub. L. 96-354, the Regulatory 
Flexibility Act, is not required.

Paperwork Reduction Act of 1980

    This regulation imposes no additional reporting and recordkeeping 
requirements necessitating clearance by the Office of Management and 
Budget.

(Catalog of Federal Domestic Assistance Program No. 93.807, 
Supplemental Security Income)

List of Subjects in 20 CFR Part 416

    Administrative Practice and Procedure, Aged, Blind, Disability 
benefits, Public assistance programs, Supplemental Security Income 
(SSI), Reporting and recordkeeping requirements.

    Dated: November 10, 1994.
Shirley Chater,
Commissioner of Social Security.
    Approved: December 27, 1994.
Donna E. Shalala,
Secretary of Health and Human Services.

    Part 416 of Chapter III of Title 20 of the Code of Federal 
Regulations is amended as follows:

PART 416--[AMENDED]

    1. The authority citation for Subpart D of Part 416 continues to 
read as follows.

    Authority: Secs. 1102, 1611 (a), (b), (c), and (e), 1612, 1617, 
and 1631 of the Social Security Act; 42 U.S.C. 1302, 1382 (a), (b), 
(c), and (e), 1382a, 1382f, and 1383.

    2. New Sec. 416.415 is added to read as follows:


Sec. 416.415  Amount of benefits; eligible individual is disabled child 
under age 18.

    (a) If you are a disabled child under age 18 and meet the 
conditions in Sec. 416.1165(i) for waiver of deeming, your parents' 
income will not be deemed to you and your benefit rate will be $30 a 
month.
    (b) If you are a disabled child under age 18 and do not meet the 
conditions in Sec. 416.1165(i) only because your parents' income is not 
high enough to make you ineligible for SSI but deeming of your parents' 
income would result in an SSI benefit less than the amount payable if 
you received benefits as a child under Sec. 416.1165(i), your benefit 
will be the amount payable if you received benefits as a child under 
Sec. 416.1165(i).
    3. The authority citation for Subpart K of Part 416 continues to 
read as follows:

    Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621, 
and 1631 of the Social Security Act; 42 U.S.C. 1302, 1381a, 1382, 
1382a, 1382b, 1382c(f), 1382j, and 1383; sec. 211 of Pub. L. 93-66, 
87 Stat. 154.

    4. Section 416.1148 is revised to read as follows:


Sec. 416.1148  If you have both in-kind support and maintenance and 
income that is deemed to you.

    (a) The one-third reduction and deeming of income. If you live in 
the household of your spouse, parent, essential person, or sponsor 
whose income can be deemed to you, or the household of a parent whose 
income is not deemed to you because of the provisions of 
Sec. 416.1165(i), the one-third reduction does not apply to you. The 
rules on deeming income are in Secs. 416.1160 through 416.1169. 
However, if you live in another person's household as described in 
Sec. 416.1131, and someone whose income can be deemed to you lives in 
the same household, we must apply both the one-third reduction and the 
deeming rules to you.
    (b) The presumed value rule and deeming of income. (1) If you live 
in the same household with someone whose income can be deemed to you 
(Secs. 416.1160 through 416.1169), or with a parent whose income is not 
deemed to you because of the provisions of Sec. 416.1165(i), any food, 
clothing, or shelter that person provides is not income to you. 
However, if you receive any food, clothing, or shelter from another 
source, it is income and we value it under the presumed value rule 
(Sec. 416.1140). We also apply the deeming rules.
    (2) If you are a child under age 18 who lives in the same household 
with an ineligible parent whose income may be deemed to you, and you 
are temporarily absent from the household to attend school 
(Sec. 416.1167(b)), any food, clothing, or shelter you receive at 
school is income to you unless your parent purchases it. Unless 
otherwise excluded, we value this income under the presumed value rule 
(Sec. 416.1140). We also apply the deeming rules to you 
(Sec. 416.1165).
    5. In Sec. 416.1165, the introductory text is revised and a new 
paragraph (i) is added to read as follows:


Sec. 416.1165  How we deem income to you from your ineligible parents.

    If you are a child living with your parents, we apply the deeming 
rules to you through the month in which you reach age 18. We follow the 
rules in paragraphs (a) through (e) of this section to determine your 
eligibility. To determine your benefit amount, we follow the rules in 
paragraph (f) of this section. The rules in paragraph (g) of this 
section apply to changes in your family situation. Paragraph (i) of 
this section discusses the conditions under which we will not deem your 
ineligible parents' income to you if you are a disabled child living 
with your parents.
* * * * *
    (i) Disabled child under age 18.
    If you are a disabled child under the age of 18 living with your 
parents, we will not deem your parents' income to you if--
    (1) You previously received a reduced SSI benefit while a resident 
of a medical facility for which Medicaid paid more than 50 percent of 
the cost of your care;
    (2) You are eligible for medical assistance under a Medicaid State 
home care plan approved by the Secretary under the provisions of 
section 1915(c) or authorized under section 1902(e)(3) of the Act; and
    (3) You would otherwise be ineligible for a Federal SSI benefit 
because of the deeming of your parents' income or resources.

    6. The authority citation of Subpart L of Part 416 continues to 
read as follows:

    Authority: Secs. 1102, 1602, 1611, 1612, 1613, 1614(f), 1621, 
and 1631 of the Social Security Act; 42 U.S.C. 1302, 1381a, 1382, 
1382a, 1382b, 1382c(f), 1382j, and 1383; sec. 211 of Pub. L. 93-66, 
87 Stat. 154.

    7. In Sec. 416.1202, paragraph (b) is revised to read as follows:


Sec. 416.1202  Deeming of resources.

* * * * *
    (b) Child--(1) General. In the case of a child (as defined in 
Sec. 416.1856) who is under age 18, such child's resources shall be 
deemed to include any resources, not otherwise excluded under this 
subpart, of an ineligible parent of such child (or the ineligible 
spouse of a parent) who is living in the same household (as defined in 
Sec. 416.1851) as such child, whether or not available to such child, 
to the extent that the resources of such parent (or such spouse of a 
parent) exceed the resource limits described in Sec. 416.1205 except as 
provided in paragraph (b)(2) of this section. (If the child is living 
with only one parent, the resource limit for an individual applies. If 
the child is living with both parents (or one parent and his 
[[Page 362]] or her spouse), the resource limit for an individual and 
spouse applies.) In addition to the exclusions listed in Sec. 416.1210, 
pension funds which the ineligible parent or spouse of a parent may 
have are also excluded. ``Pension funds'' are defined in paragraph (a) 
of this section. As used in this section, the term ``parent'' means the 
natural or adoptive parent of a child and ``spouse of a parent'' means 
the spouse (as defined in Sec. 416.1806) of such natural or adoptive 
parent.
    (2) Disabled child under age 18. In the case of a disabled child 
under age 18 who is living in the same household with his or her 
parents, the deeming provisions of paragraph (b)(1) of this section 
shall not apply if such child--
    (i) Previously received a reduced SSI benefit while a resident of a 
medical facility for which Medicaid paid more than 50 percent of the 
cost of the individual's care;
    (ii) Is eligible for medical assistance under a Medicaid State home 
care plan approved by the Secretary under the provisions of section 
1915(c) or authorized under section 1902(e)(3) of the Act; and
    (iii) Would otherwise be ineligible because of the deeming of his 
or her parents' resources or income.
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[FR Doc. 95-115 Filed 1-3-95; 8:45 am]
BILLING CODE 4190-29-P