There are two situations in which States may be found out of compliance:
SSA will find a State to be out of compliance with the pass-along procedures if the
State fails to have an agreement in effect or a State terminates the agreement. For
information on monitoring and noncompliance with pass along, see SI 01403.005B.1.
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Failure to maintain required supplementary levels or meet total expenditures test
SSA will find a State to be out of compliance with the pass-along procedures if the
State fails to maintain required supplementary levels or meet the total expenditures
test. For information on monitoring and noncompliance with pass along, see SI 01403.005B.2.
NOTE: If SSA finds that a State is determined to be out of compliance with the pass-along
requirements and the State does not take corrective action to achieve compliance,
the State could lose Federal funding for its title XIX program.