THIRD PARTY PAYMENTS TO ENROLLEE BASED PROGRAMS AND THE EFFECTS ON SSI

Any time a recipient receives outside assistance in a form other than cash, we evaluate it under our “in kind support” category. In kind support includes any item of food or shelter paid on their behalf, so it could be something like rent (or mortgage), utilities (not including phone), groceries, property taxes, or property insurance. It is still sometimes more advantageous for the third party to pay the bill directly, because we count this income dollar for dollar, but only up to the current maximum limit, which, in 2006 is $221.00. So, for example, if your client's sister paid his rent of $800.00 per month, and she paid it directly to the landlord, we would only deduct $221.00 from his SSI check. If she paid just his electric bill, for $40.00 (for example), we would only deduct the $40.00, since it is under the maximum.

(The maximum amount is derived every year by using a formula of 1/3 of the federal portion of the SSI benefit plus $20.00, in case you were curious.)

I usually advise my claimants that, if they can't afford to meet all of their expenses, and someone is willing to assist, that they should first pay for the things that will not affect the SSI benefit. Again, these have to be paid directly, because cash is cash, and always counts. But if they pay a bill directly, and it is something like telephone (which the government does not consider a basic shelter expense), space rent (if they live in a trailer), homeowner's association fees (for condo owners), car payments or car insurance or gas credit cards, medical insurance or prescriptions or doctor visits, beauty parlor or barber, or basically any other expenses not specifically food or shelter, it will not affect their benefits.

(Thanks to June Wilson, Area Work Incentive Coordinator).