All States that supplement the SSI of an individual whose Federal benefits are limited to the $30 reduced benefit rate while in a medical treatment facility, whether the supplements are federally or State-administered, are required to supplement the SSI of children who are SSI-eligible under the parental deeming waiver provision. This includes children who would receive a smaller benefit under the “normal” deeming rules and for whom deeming is waived under this provision.

The effect of this policy is to increase the maximum SSI payable to affected children above the $30 Federal “threshold” in determining whether a child could receive higher benefits under the parental deeming waiver provision (compared to the benefits payable under the normal deeming rules).

In States with federally-administered optional State supplementary (OSS) payments, include the OSS payment for a child who is a resident of a medical treatment facility when computing the amount of SSI payable under the parental deeming waiver provision.

When computing the SSI payable under the waiver provision, include the most recent OSS payment that was applicable while the child was a resident of a medical treatment facility — that is, the OSS payment that applied when the child was last in Federal living arrangement “D.”

IMPORTANT: Keep in mind that unless a State chooses to establish a different OSS rate for children under age 18 who are subject to the reduced benefit rate ($30 payment limit) because of private health insurance payments (that is, Medicaid alone does not pay over 50 percent of the cost of their care), those children will receive the OSS amount that would apply to them if they were not subject to the $30 payment limit (see SI 00520.011C.6.).

For more information on OSS payments that apply to children whose Federal SSI benefits are limited to $30 while in a medical treatment facility, refer to the instructions in SI 00520.011.

State supplementary payments, SI 01415.001