SI CHI00830.416 (MI) Michigan Adoption Subsidies (RTN 377 -- 10/2005)

A. General

The Michigan Department of Human Services (MDHS) administers the Adoption Support Subsidy and Adoption Medical Subsidy programs. The purpose of these programs is to make adoption possible for "hard to place" children who otherwise might not be adopted.

Adoption Support Subsidy provides a monthly payment to the parent(s) of an eligible adopted child. Adoption Medical Subsidy is a reimbursement program that assists with payment of out of pocket medical costs for an eligible adopted child's conditions that pre-existed the adoption.

B. Funding

  1. Adoption Support Subsidy is funded with Title IV-E, Temporary Assistance to Needy Families (TANF), or state funds.

    • The income of the adoptive parent(s) is not considered in determining eligibility for the program or the rate to be paid. However, if the child is not Title IV-E eligible, the adoptive parent(s) income is considered in determining the funding source.

    • Title IV-E funds are used if the child meets Michigan's Title IV-E criteria for adoption support subsidy. Title IV-E eligibility is only reassessed if the adoption support subsidy is extended beyond age 18.

    • If a child does not meet Title IV-E criteria, then either state or TANF funds are used depending on the adoptive parent(s) income. Adoptive parent(s) income is assessed at adoptive placement and annually thereafter to determine whether TANF funds can be used. If the family's income is above the TANF guidelines, then state funds are used.

    • Adoptive parent(s) file an Annual Report with MDHS at least once each year. Information on parental income is used to determine the funding source for that year.

      1. SSI Treatment of State-Funded Adoption Subsidies

        The Office of General counsel has determined that Michigan adoption subsidies are social services if they are entirely state-funded and, therefore, are not income to either the adopting parent(s) or child(ren), in accordance with SI 00815.050.

        NOTE: The parents' income is subject to deeming, unless excluded under another provision.

      2. SSI Treatment of TANF Funded Adoption Subsidies

        TANF funded adoption subsidies are considered federally funded and cause a dollar-for-dollar reduction of the SSI payment.

      3. SSI Treatment of Title IV-E Funded Adoption Subsidies

        Unlike state-funded adoption subsidies, Title IV-E adoption assistance causes a dollar-for-dollar reduction of the SSI payment. See SI 00830.415 for instructions on Title IV-E payments.

  2. Adoption Medical Subsidies are funded with TANF or State General Funds.

C. Adoption Support Subsidy

1. Application and Eligibility

Adoption Support Subsidy must be applied for and eligibility determined before the petition for adoption is filed; the adopting parent must request payment before the confirmation of the adoption. Adoption support subsidy is available without respect to the adopting parent(s) income.

2. Rate

MDHS determines a subsidy rate based on the child's foster care rate prior to adoptive placement.

3. Payment

The parent may request payment up to the rate determined by MDHS. MDHS deducts from the subsidy payment the amount of Social Security and Veteran's Administration benefits due the child through their birth parent's eligibility. Benefits that result from the adoptive parent(s) eligibility are not budgeted.

MDHS issues checks directly to the parent(s) on a monthly basis for the coming month. Adoption subsidy rates change in accordance with foster care rates.

4. Documentation

The adoptive family receives a copy of the Adoption Support Subsidy/Nonrecurring Adoption Expenses Agreement. A check box on page 2 of the Agreement indicates whether the support subsidy is eligible for Title IV-E funding.

If a child does not meet Title IV-E criteria, then either state or TANF funds are used, depending on the adoptive parent(s) income. If the support subsidy is not funded under Title IV-E, the adoptive parent(s) income is assessed at adoptive placement and annually thereafter to determine whether TANF or state funding should be used.

The Agreement indicates the daily rate of the Adoption Support Subsidy at the time that eligibility was determined. Increases based on age or increases in the foster care rate are not reflected in the Agreement.

D. Medical Subsidy

Adoptive Medical Subsidy is a reimbursement progr