Medicare Advantage Supplemental Benefits Excluded from CalFresh Income Calculations

On June 11, 2026, the Department of Social Services released ACL 26-42 on CalFresh Treatment of Medicare Advantage Supplemental Benefits. Medicare Advantage Supplemental Benefits are excluded from CalFresh (SNAP) income calculations. These benefits, reimbursing specific health-related items or services, do not count as household gains or benefits and cannot be used as medical expense deductions. County Welfare Departments (CWDs) must treat them as medical reimbursements, not income.


Exclusion from Income for CalFresh Purposes

  • CWDs must exclude all MA supplemental benefits from income when determining CalFresh eligibility. These benefits are considered medical reimbursements and are not counted as income.
  • This exclusion is based on Section 5(d)(5) of the Food and Nutrition Act of 2008 and 7 CFR 273.9(c)(5), which state that reimbursements for past or future expenses are not income if they do not exceed actual expenses and do not represent a gain or benefit to the household.

Definition and Examples of MA Supplemental Benefits

  • MA supplemental benefits are items or services related to the health of the enrollee and not covered under Medicare Part A, B, or D. Examples include food, transportation, utilities, or other items that improve or maintain the health or function of the enrollee.
    These benefits may be provided through spending cards limited to certain covered items or services, varying by insurer.

Not Allowable as Medical Expense Deductions

  • Medical expenses reimbursed by MA supplemental benefits cannot be used as medical expense deductions for CalFresh. Households cannot use these reimbursed expenses to qualify for the Standard Medical Deduction.

(A. Meyer)

Use Of Income, Employment, and Work Hour Verification Tools: The Work Number And Truv

As of June 8, 2026, CDSS is changing the workflow for verification of income, employment, and work hours in two ways. [ACL 26-37]

First, CDSS uses a consumer credit report called The Work Number (TWN) to verify work and employment information for applicants and recipients of CalFresh and CalWORKs. Previously, eligibility workers only obtained a TWN verification if income or employment was reported by the household/assistance unit. Effective June 8, 2026, CDSS requires eligibility workers to obtain a TWN verification for every initial applicant and at any recertification or redetermination of benefits.

Second, CDSS will now offer Truv as an option to applicants and recipients as a way to obtain verification of employment, income, and work hours. Participant consent to use of Truv is optional and participants can still use other verification methods. Truv allows individuals to consent to securely share real-time payroll and employment data directly from employers, payroll providers, and gig economy platforms. Individuals can utilize the Truv link provided by the county and complete the consent-based verification process by providing login credentials to relevant electronic sources.

(K. Wardrip)

Non-Exempt Vehicle Limit Increase

Effective July 1, 2026, the maximum value limit for non-exempt vehicles will increase for applicants/recipients of CalWORKs and three other programs. The new limit will be $33,626 (in equity value). Any equity value above that amount will count against the applicant/recipient’s maximum asset limit. This changes also applies to the Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime and Victims Assistance programs. [ACL 26-38]

Applicants and recipients can self-certify their vehicles’ fair market value using the “Self-Certification Form for Motor Vehicles” (CW 80) form. The counties use this form to determine whether the value is exempt from the vehicle limit, the equity value of non-exempt vehicles and whether there is excess equity value that should count against the family’s total resource limit.

CDSS directs counties to discontinue use of promissory notes for overpayment collection

Acknowledging that inclusion of promissory notes along with CalWORKs overpayment notices of action constituted an unlawful demand in violation of its regulations (MPP Section 44-351.1), CDSS directed counties to stop sending such agreements to reimburse. Recipients may still voluntarily request a reimbursement agreement, which must be in writing and clearly indicate that repayment is voluntary. CDSS further instructed counties to begin using a new form, CW 2217 “CalWORKs Request for Voluntary Repayment,” which they may provide upon request as long as the recipient has asked if he or she may voluntarily repay, the overpayment was already explained to the recipient, the county did not initiate or request the repayment, and the recipient understands he or she may suspend the repayment at any time. ACL 15-13.

Welfare to Work’s altered “flow”

Beginning in 2014, CDSS implemented AB 74, which changed the sequence of activities for CalWORKs Welfare to Work (WTW) participants provided in Welf. & Inst. Code Section 11320.1 in order to better serve individuals who  face significant barriers to employment in light of the WTW 24-month clock. AB 74 permits participants to bypass the job search (job market test) when the participant is identified as having potential barriers to employment, such as mental health, substance abuse or domestic abuse, which warrant further assessment during the appraisal process. AB 74 also provides for a standardized appraisal tool to identify such individuals.  That tool, the Online CalWORKs Appraisal Tool (OCAT), is to be implemented in Spring 2015. When significant barriers are identified during appraisal, the participant should be evaluated for a WTW exemption and referred for barrier evaluation and related services when appropriate.  ACL 15-09.