Seattle Disability Law

A PUBLICATION OF THE LAW OFFICES OF LARRY A. JONES
JANUARY 2008

KEVIN'S LAW

Kevin Britt in Governor Gregoire’s chair

EARNED INCOME TAX CREDITS

Many workers with disabilities qualify for these cash benefits!

Low-income workers without children comprise the largest segment of eligible taxpayers who fail to claim the Earned Income Tax Credit (EITC), according to the IRS.

If you are single and childless, at least age 25 but under age 65 at the end of 2007 and earned income of less than $12,590, you may qualify for up to $428 in EITC.

Earned income for EITC includes wages, salaries, tips, and other taxable pay and net earnings if you are self-employed. Benefits such as Social Security Disability Insurance, SSI, or military disability pensions are not considered earned income and, cannot be used to claim the EITC.

Low-income Parents

A working, low income parent of a person with disabilities may qualify, too. A qualifying child of any age who is totally and permanently disabled can be claimed for the EITC. All other eligibility requirements must also be met. If the qualifying child who is totally and permanently disabled also receives disability benefits, they can still be claimed for the EITC.

Effect of IRS dependency status

A worker with disabilities cannot claim an Earned Income Tax Credit, if they are claimed as a dependent on a parent’s own tax return. Generally speaking, a person with developmental disabilities living at home with a parent can be claimed as a dependent, if the parent provides more than half of the person’s support in the tax year. In that case, the parent and worker with disabilities may wish to confer to see which option produces the biggest value: claiming the EITC or claiming dependency status.

IMPROVED HOUSING OPTIONS!

The Housing Access and Services Program (HASP) is a King County Housing Authority program that helps county residents with disabilities qualify for “Section 8.” Section 8 allows a person to pay only 30% of his or her income towards rent and utilities. The King County Housing Authority pays the difference.

The applicant must be prepared to be successful at independent or semi﷓independent living. The applicant must be a Division of Developmental Disabilities (DDD) client or receive case management services from The Arc. Also, there must be a support system available. This support system may include case management, family, friends, or paid support providers.

The person must also meet a federal preferences either (a) “rent burdened,” that is, paying more than 50% of monthly income on rent and utilities for at least 90 days, (b) involuntarily displaced, or (c) living in substandard housing or homeless.

King County has been very creative and successful in designing Section 8 housing options for persons who need support from family members or caregivers. You should take a serious look at this program if you are thinking about housing.

For more information about HASP, contact your DDD case manager or King County Developmental Disabilities Division Housing Coordinator (206) 263-9048.

HOW TO GET MEDICAID EVEN IF YOU DON’T GET SSI

Most services for adults with developmental disabilities require Medicaid eligibility. These services include Personal Care services, most supported employment services, and most supported living arrangements, in addition to medical care.

So how can you get on Medicaid? In our state you automatically get Medicaid if you become eligible for Supplemental Security Income (SSI). Typically a person with disabilities becomes eligible for SSI for the first time at age 18, assuming that the disability is severe enough, and the person has less than $2000 in assets (not counting assets in a special needs trust) and has low monthly income (now $940, adjusted annually).

If a child with disabilities turns 18 and his or her parent is already deceased or receiving Social Security benefits, the 18 year old may get a Social Security Disabled Adult Child (DAC) check, and never get SSI.

How can a person who was never on SSI get Medicaid services? There are several ways.

DDD WAIVERS

First, there are the Basic, Basic Plus, and Core waiver programs offered by the Division of Developmental Disabilities. There are waiting lists for each of these waivers. However, if a person is a DDD client and the person is added to a waiver, income solely from DAC will not be enough to disqualify that person, so he or she will receive full Medicaid.

HWD PROGRAM

Second, there is the Healthcare for Workers with Disabilities (HWD) program run by Washington state. The program allows a Medicaid “buy-in” by a worker. Eligibility is open to disabled Washington residents age 16 through 64 who are employed (including self-employment) full or part time and have a monthly net income at or below 220% of the federal poverty level (currently $1,906).

The “buy-in” means that there is a monthly premium based on a sliding scale; it cannot be more than 7.5% of your total income and may be less. Call the Seattle special office for this program at (206) 341-7433 or 1-800-337-1835.

There is no minimum number of hours of work, nor any minimum earnings for a worker to qualify. Almost any person with disabilities can help a business a few hours a month. It is up to advocates to locate or develop a business that is willing to hire the person – and keep that person working each month. (Of course, that business will need to follow the laws that apply to all workers, such as minimum wage laws, workers’ compensation, unemployment compensation, etc.) The possibilities here are nearly endless – dog-walking, painting cards that the family markets, smiling for camera shots, and many others that use the skills that a person has to offer. What appears to be a disability – for example, a great concern with orderliness – can be turned into a job skill, if the employer needs things re-alphabetized daily.

COPES

Third, Washington state offers another Medicaid waiver program which has no waiting-list at present. COPES is a program that funds in-home assistance to seniors and younger persons with disabilities who are not on a DDD waiver. A person must need extensive help with two activities of daily living or some help with three. A person who needs constant supervision due to cognitive impairments may qualify if help is needed in only one activity. A person’s monthly income must be under $1911. A person who qualifies will receive full Medicaid benefits.

ANOTHER WAY

Almost all our clients with disabilities will be able to qualify for Medicaid using one of the three ways above. But if the person with disabilities is under 18, and you fear he or she will not qualify for Medicaid under one of the three ways above at age 18, please call our office. We can advise you on another possible avenue for eligibility.

KEEP MEDICAID EVEN AFTER SSI ENDS

People with disabilities often have their Medicaid discontinued, when they get DAC or Social Security Disability (SSDI) instead of SSI. That is wrong. Such people are “dual eligibles” - - eligible for both Medicare and Medicaid. If someone you know is thrown off Medicaid, call us immediately! We can help the adult child retain Medicaid under one of several specific provisions of Social Security law.

THE ARC V. QUASIM LAWSUIT SETTLED

Last year, after nine years of work by this firm, The Arc of Washington State settled its Medicaid class action lawsuit on behalf of persons with developmental disabilities. The first phase of settlement gained millions of dollars in new services beginning in 2003. The new settlement continued that pattern: the Governor promised to seek millions of new dollars for community services. The 2007 legislative session did pass the largest increase in DDD funding in many years. The Arc settlement played an important part in that success.