DI 39518.030 Employment Insurance Programs -- DDS


Regulations 20, CFR 41, Chapter 1, Subpart 1-15, 711-5 and 712-4

A. Definition

Employment Insurance

Employment insurance expenses include, but are not limited to: bonding, employer health insurance, life insurance, workers' compensation, and unemployment insurance.

B. Policy Principle

1. Insurance

With proper budgetary approval, the DDS may incur expenses for various employee insurance programs.

2. Bonds

The cost of premiums on bonds covering State employees is allowable.

3. Types, Extent, and Cost of Liability Insurance

  1. a. 

    The types, extent and cost of coverage will be in accordance with general State or local government policy and sound business practice.

  2. b. 

    Contributions to a reserve for a self-insurance program approved by the Federal grant or agency are allowable to the extent that the types of coverage, extent of rates, and premiums would have been purchased to cover the risks.

C. Operating Policy - Bonding

The State's cost of a new bond or an amendment to an existing bond is a proper charge to the SSA disability program if the cost is required in relation to receiving and handling Federal funds.

D. Operating Policy - Public Liability

1. Not Chargeable to SSA

The cost of awards, judgements, or settlements arising from injury to person or property, is not chargeable to SSA, except as provided for in DI 39518.025ff.

2. Chargeable to SSA

a. Protection for Injury to Person or Property

An appropriate share of the cost to the State agency of protecting the State agency against financial responsibility for injury to person or property is properly charged to the SSA disability program.

EXAMPLE: Such expenses are a proper charge when they are in the form of:

  • premiums for public liability, or

  • property damage insurance.

b. Motor Vehicles

A share of the public liability and property damage insurance costs can be charged if:

  • the motor vehicle is used in the proper discharge of State agency official business, and

  • the cost is proportionate to the share of all motor vehicle travel of personnel devoted to activities concerned with making disability determinations.

E. Operating Policy - Coverage

1. Who May Be Covered

For SSA purposes, liability insurance for DDS employees may include any personnel responsible for the development and adjudication of disability cases, i.e.:

  1. a. 

    DDS administrators;

  2. b. 

    DDS physicians; and

  3. c. 

    DDS adjudicators.

NOTE: Generally, DDS employees, including DDS physicians, are responsible for obtaining and paying premiums for their own liability insurance.

Under the Federal Tort Claims Act, DDS employees are considered to be independent contractors. Therefore, unless these employees are covered under the conditions set out in the following section, they are responsible for their own payment of premiums.

2. When Allowable

Cost of liability insurance may be allowable and considered necessary when all of the following criteria are met:

  1. a. 

    Liability insurance is in accordance with State law or regulation or general State policy.

    NOTE: A copy of State law or regulation must be submitted to SSA RO.

  2. b. 

    Liability insurance must cover other State employees as well, i.e., liability insurance which covers only DDS employees will not be funded.

  3. c. 

    A written statement from insurance company or other document is submitted to the RO which clearly indicates the desired extension of coverage specifically to DDS employees.

3. Computation

Only that part of a prorated cost which is applicable to performing the disability determination function will be considered a necessary cost.

4. How to Charge

The DDS's share of the cost may be charged as follows:

a. Direct

The cost may be charged to the DDS as a direct cost and included in the miscellaneous category under “Other Costs” if the computation involves a simple ratio.

b. Indirect

The cost should be charged as indirect cost if the computation is intricate.

NOTE: Report indirect costs immediately to the Division of Cost Allocation in the Department of Health and Human Services (DHHS) RO, and include in the next indirect cost proposal.

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DI 39518.030 - Employment Insurance Programs -- DDS - 08/05/1996
Batch run: 04/27/2020