Changes to child care income eligibility and fees

The California Department of Education (CDE) has issued three Management Bulletins about changes in child care income eligibility.  For purposes of initial eligibility for a family’s adjusted monthly income must be at or below 70 percent of State Median Income.  Once the family is eligible, the family remains eligible until their adjusted monthly income exceeds 85% of State Median Income.  A schedule of the initial income eligibility amounts is in Management Bulletin 17-08.

The family must report income increases that exceed the 85% threshold.  The contractor must notify parents in writing at the time of initial eligibility and at recertification of the dollar amount that equals the 85% threshold, and of the requirement to report when income exceeds this dollar amount.  After reporting, the contractor must redetermine eligibility, including evaluating eligibility for other state of federally funded child care programs.  A schedule of the 85% threshold reporting amount is in Management Bulletin 17-09.

In addition, CDE has adopted a new income ranking table.  First priority for child care services are to children who are receiving Child Protective Services, or have been identified as as-risk of abuse, neglect or exploitation.  Second priority is by income ranking order.  Management Bulletin 17-10 includes a link to spreadsheet of the new table to determine the income ranking order for enrollment and disenrollment.  (Management Bulletins 17-08, 17-09 and 17-10, July, 2017.)

EITC changes

CDSS has notified counties about changes to the federal and state Earned Income Tax Credit (EITC) programs.  The maximum income and credit limits for federal EITC has increased for the 2017 tax year.  CDSS’ notice includes a table of the 2017 tax year maximum income and credit limits.

The California EITC is expanded to increase the income limit and to allow self-employment income to be eligible for the California EITC starting in the 2017 state tax year.  CDSS’ notice includes a table of the California maximum income and credits for the 2017 tax year.

EITC payments are exempt from consideration as income when determining CalWORKs eligibility and grant levels.  EITC payments are permanently excluded as income when determining eligibility and grant amounts for CalWORKs and CalFresh.

EITC payments are exempt from resource consideration for CalWORKs and CalFresh for 12 months starting with the month of receipt of payment.  Counties are encouraged to inform CalWORKs recipients that EITC payments are exempt from consideration as property for 12 months so that they do not need to spend down the EITC payment to maintain CalWORKs eligibility.  (ACL 17-120, December 5, 2017.)

Medi-Cal Asset Verification

Starting this month, DHCS will be sending counties new asset verification reports for screening specific Aged, Blind and Disabled Medi-Cal beneficiaries and applicants.  After a three-month pilot, counties will use these reports to detect any unreported assets from non-SSI receiving ABD cases.  The verification capacity will eventually be integrated into various statewide systems.

DHCS will start providing these reports for LTC annual redeterminations and will gradually expand to all ABD annual redeterminations by 2020.  DHCS will generate verification reports two months prior to the end of a beneficiary’s redetermination month.  These reports will contain liquid and non-liquid assets from various financial institutions during a lookback period of ten months.  If a beneficiary refuses to respond to an asset-related inquiry, their case may be discontinued.

DHCS ACWDL 17-37 (December 12, 2017)

Outpatient Mental Health Services through Medi-Cal Managed Care Plans

A recent DHCS All-Plan Letter restated the responsibilities of managed care plan for providing medically necessary outpatient mental health services for those with mild to moderate impairments.  The APL also states the plans’ responsibilities to members with severe mental health impairments, including when to coordinate and refer to county mental health plans for specialty mental health services.  The letter clarifies responsibilities regarding children’s mental health services.  Finally, the letter provides a description chart for a side-by-side comparison of eligibility and service obligations for managed care plans and county mental health plans.

DHCS APL 17-018 (October 27, 2017)

Removal of IHSS overtime violation for untimely county dispute processing

The California Department of Social Services has issued instructions about counties asking CDSS to remove an IHSS provider overtime violation when the county exceeds the 10 day dispute processing timeframe.

To dispute an overtime violation, an IHSS provider must submit the violation dispute form within 10 calendar days of the date on the violation notice.  The county enters the date the violation dispute form is received into CMIPS within 10 business days to have the violation considered for removal.

If the county does not enter the violation dispute into CMIPS within 10 business days, the system prevents entering the violation dispute.  In that event a county can request that CDSS remove the violation if the delayed processing is because of 1) a circumstance beyond the provider’s control, 2) the provider file the violation dispute timely but the county did not timely enter the dispute into CMIPS and 3) the violation would have been removed had the dispute been entered into CMIPS timely.

Counties must submit CDSS review requests within 45 days of the violation notice date.  Only counties can initiate this review process.  (ACL 17-105, October 19, 2017.)

CalWORKs and CalFresh Administrative Disqualification Hearings

The California Department of Social Services has issued instructions about Administrative Disqualification Hearings (ADH) for CalWORKs and CalFresh.  Counties investigate cases of alleged Intentional Program Violation (IPV).  These cases are pursued either through administrative or criminal proceedings.

For CalFresh, an IPV is intentionally either making a false or misleading statement; misrepresenting, concealing or withholding facts; or committing any act that violates the Food Stamp Act or the CalFresh program regulations. The county can initiate a CalFresh ADH by informing CDSS State Hearings Division that it has clear and convincing documentary evidence of an IPV.

For CalWORKs, an IPV is intentionally making a false or misleading statement or misrepresenting, concealing or withholding facts; committing any act intended to mislead, misrepresent, conceal or withhold facts or propound a falsity; and committing these acts to establish or maintain CalWORKs eligibility or to increase or prevent a reduction in the amount of a CalWORKs grant.  The county can initiate a CalWORKs ADH when the county determines that the respondent has committed an ADH based on preponderance of the evidence.

If the case meets the definition of an IPV, the case must be referred to the District Attorney for prosecution or to the ADH process.  If the case is not accepted by the District Attorney or the District Attorney does not act on the referral, the county must initiate ADH proceedings.

Upon receipt of an ADH referral, CDSS will give written notice of a state hearing to the respondent at least 30 days before the hearing.  The notice of hearing must be either personally served or mailed by first class mail at least 30 days before the hearing.  If the respondent no longer receives benefits, the county must verify the respondent’s mailing address prior to mailing the IPV notice.  If the hearing notice is returned as undeliverable, the hearing will be postponed to allow the county to verify or obtain a valid mailing address.  If the hearing notice continues to be returned as undeliverable, a hearing will not be scheduled until the county obtains another verified address.

If an individual is found to have committed an IPV through the ADH process or the individual signs an ADH waiver, the county must send the individual an Administrative Disqualification Notice using a specified form.  (ACL 17-118, November 21, 2017.)