*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***

Chapter 21 - Income Calculation (Community)

Effective:  December 1, 2006

21.50.30 - PASS Deduction

Archived:  June 1, 2016

Plan to Achieve Self Support (PASS) Deduction

The Plan to Achieve Self-Support (PASS) deduction is only available to clients using the MA Method B income calculation and the Medicare Savings Programs income calculation.

Exception:  The PASS deduction is not available to clients using Method B because of age.

What is PASS?

Conditions for Using the PASS Deduction.

Applying the PASS Deduction.

Ending the PASS Deduction.

Reviewing.

Work Expense or PASS Deduction.

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What is PASS?

PASS is a plan which allows certain client assets or income to be excluded in determining benefits for MA.

The plan is approved by:

l  The Social Security Administration for SSI recipients.

l  The County Social Service Agency for:

n  Blind or disabled MA enrollees.

n  MSA recipients.

A PASS plan is initially set for 18 months with an 18-month extension usually available. A 48-month PASS would be used only because of special educational or training requirements.

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Conditions for Using the PASS Deduction

To use the deduction a PASS must meet all of the following conditions:

l  Be in writing.

l  Be individually designed for the client.

l  Have a feasible occupational goal.

l  Explain what income will be used to meet the PASS objectives.

l  Explain how the client will keep income set aside to meet PASS objectives separate from other funds.

l  Set beginning and end dates for the plan.

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Applying the PASS Deduction

Allow this deduction from earned and unearned income.

The deduction amount is the amount set aside under an approved PASS.

The deduction can be given for up to 48 months, as long as the PASS plan continues to be approved.

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Ending the PASS Deduction

End the PASS deduction the month after the month one of the following occurs:

l  The client does not comply with the plan.

l  The client voluntarily stops participating in the plan.

l  The client reaches the occupational goal of the plan.

l  The plan's time limit expires and no extension is available.

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Reviewing the PASS Deduction

Review the PASS to be sure the conditions continue to be met and the PASS continues to be approved by SSA or county social services at least semi-annually or more often if circumstances make it necessary.

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Work Expense or PASS Deduction

When an expense qualifies both as a work expense deduction and a PASS deduction, the client must choose between them.

Note:  Do not allow a deduction for the same expense twice.

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