Policy  Directive                                                    Issuance Number: MS 01-13

Medical Services Policy Manual                       Issuance Date: December 1, 2001

From: Ruth Whitney, Director                               Expiration Date: Until Superseded

Subj: 2002 Cost of Living Increase

The Cost of Living Increase for Social Security recipients in 2002 is 2.6 percent.

The following amounts are effective January 1, 2002, based on this increase:

1. The Long Term Care (LTC), TEFRA, and Home and Community Based

Waiver income limit is $1635.00.

2. The SSI/SPA full benefit level for an individual is $545.00, and for a couple

is $817.00.

3. The 1/3 reduction for living in the household of another is $363.34 for an

individual and $544.67 for a couple.

4. The living allowance for an ineligible spouse or an ineligible child in the

deeming procedures is raised to $272.00.

5. The presumed value of in-kind support and maintenance is $201.66 for an

individual and $292.33 for a couple.

6. The Maximum Monthly Maintenance Needs Allowance on the DCO-712 is

increased to $2,232.00.

7. The Spousal Minimum Resource Standard on the DCO-713 is increased to

$17,856.00, and the Maximum Resource Standard is increased to $89,280.00.

8. The Quarter of Coverage amount for Unemployed Parent determinations is

increased to $870.00.

9. The Substantial Gainful Activity (SGA) amount is increased to $780.00.

The January 2002, revised DCO-712 will be available on DHS Gold and is available

as a spreadsheet in ANSWER. The revised DCO-713 should be available in Central

Supply after December 31, 2001.

The memorandum of instructions for processing these changes for Long Term

Care and other Medicaid applicants/recipients was issued in early December.

See [Appendix S], SSI chart.

Inquiries to: Jack Tiner, 501-682-8259

Diana Teal, 501-682-1562

                    Carmen Brown, 501-682-8258

                    Cindy Gray, 501-682-8254