Much of the southeast of the United States is still recovering from devastating hurricanes (Helene and Milton) that impacted the region in the past month, affecting thousands of people. Citizens affected by the damage caused by these hurricanes can apply for disaster relief funds through the Federal Emergency Management Agency (“FEMA”) and other agencies and organizations. The question arises for persons seeking Medicaid benefits (or those assisting them in these efforts), how are these funds categorized by state Medicaid agencies?
Federal Medicaid regulations stipulate that “assistance” received under the Disaster Relief and Emergency Assistance Act and assistance provided under any federal statute because of a catastrophe which the President of the United States declares to be a major disaster, is not treated as unearned income. This holds true for funds disbursed by a state or local government, or from a disaster assistance organization. See 20 CFR § 416.1124(c)(5).
Federal Medicaid regulations also provide that “support and maintenance” is not treated as income under certain conditions, whether the funds are provided by federal, state, or local governments, a disaster assistance organization, or from any other source (including a private source). These conditions include:
- The applicant lives in a household which they maintain as their home when a catastrophe occurs in the area;
- The President of the United States declares the catastrophe to be a major disaster for purposes of the Disaster Relief and Emergency Assistance Act;
- The applicant stops living in the home because of the catastrophe and within 30 days after the catastrophe they begin to receive support and maintenance; and
- The applicant receives the support and maintenance while living in a residential facility maintained by another person.
See 20 CFR § 416.1150
State Medicaid regulations and/or policy manuals may provide additional context as to how disaster relief is treated by the state. However, it is important to keep in mind that each state must abide by the federal Medicaid regulations.
President Joe Biden has issued major disaster declarations for both Helene and Milton for many of the southern states, but note that the President must declare a separate major disaster declaration for each state rather than issue a single declaration that applies across the entire United States and/or region.
These natural disasters and hurricanes are likely to continue to impact many states and their citizens, including the thousands of residents across the southeast region who require skilled nursing care. Knowing these regulations and the manner in which disaster relief is treated can help to secure Medicaid eligibility for needy residents of skilled nursing facilities.
Date: October 21, 2024
Author: Katie Van Lake, Senior Associate
