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F I S C A L I M P A C T R E P O R T

SPONSOR Stewart

DATE TYPED 3/15/05

HB 85/aHCPAC/aHJC/aHAFC

SHORT TITLE Prerelease Benefits Assistance Act

SB

ANALYST Weber

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Corrections Department (CD)

Adult Parole Board

Division of Vocational Rehabilitation (DVR)

SUMMARY

Synopsis of HAFC Amendment

The amendments by the House Appropriations and Finance Committee removed language the

amendments made by the House Consumer and Public Affairs Committee for an appropriation to

the Human Services Department

Additional amendments made by the House Appropriations and Finance Committee remove

requirements for the determination of Medicaid for federal Supplemental Security Income or

federal Social Security Disability benefits for an individual in jails or correctional facilities

operated by Class A counties.

Language was added to clarify Medicaid and cash benefits to specifically indicate Medicaid and

federal Supplemental Security Income or federal Social Security Disability benefits.

Amendments also removed the requirement for a determination on food stamp benefits.

Significant Issues

This information was supplied by the human Services Department.

The appropriation of $225,000.00 for fiscal year 2006 to implement the Prerelease Benefits

Assistance Act was removed by the House Appropriations and Finance Committee. The

amendments to remove the requirement for Human Services Department to determine eligibility

for Food Stamp benefits and making Medicaid eligibility determinations in jails and correctional

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 2

facilities operated by a Class A county, the additional appropriation and staff is not essential.

The appropriation would be required if the Class A county detention centers and the Food Stamp

Program were required by this bill.

In calendar year 2004 there were 71,153 persons released from correctional facilities in Type A

counties and adult state correctional facilities. Approximately 69,511 of the 71,153 persons

released were from jails and detention centers in Class A counties.

The State agencies identified will need to negotiate for a prerelease agreement with the federal

Social Security Administration for federal Supplemental Security Income or federal Social

Security Disability benefits.

Synopsis of HJC Amendments

The House Judiciary Committee Amendments removed language in Paragraph D and E of

Section 3 on page 3 under definitions for “suspending” Medicaid or Food Stamp benefits, as the

department is unable to suspend benefits per federal rules.

Language was also removed in Paragraph B in Section 6 on page 8 that contained the following

language on lines 7 through 11: "If the human services department determines that the person is

eligible to be enrolled while incarcerated, the person shall be enrolled but the person's benefits

eligibility shall be placed on suspended status." The language was removed, as the Medicaid and

Food Stamp program cannot “suspend" a person’s eligibility or determine an individual to be

eligible while incarcerated.

Synopsis of HCPAC Amendments

The House Consumer and Public Affairs Amendments to House Bill 85 make an appropriation to

the Human Services Department of $225 thousand from the general fund for expenditures in

FY06 for the purpose of implementing the Prerelease Benefits Assistance Act. Any unexpended

or unencumbered balance remaining at the end of the fiscal year shall revert to the general fund.

Significant Issues of Amended Bill

Human Services contributed the following.

Language was deleted on the first page in the preamble to the Act and in Section 4 on page 3 that

would have required Human Services Department to adopt rules to ensure that an incarcerated

person’s federal Social Security Income, federal Social Security Disability income, Medicaid or

Food Stamp benefits status be suspended rather than terminated upon incarceration.

The language that was deleted through the amendment on the first page under the preamble to

the Act and in Section 4 on page 3 would have required the Human Services Department to

adopt rules to ensure that an incarcerated person’s federal Social Security income, federal Social

Security Disability income, Medicaid or Food Stamp benefits status be suspended rather than

terminated upon incarceration. The language to correspond with this amendment should be

removed from Section 3, Paragraph D because it is inapplicable to Human Services Department

programs per federal rules. The Human Services Department does not determine eligibility for

the Social Security programs, and it is unable by federal law to suspend Medicaid or food stamp

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 3

benefits.

Paragraph E in Section 3, page 3 should be renumbered but remains applicable for the

suspending of benefits under the federal Supplemental Security Income and Social Security

Disability programs.

Paragraph B in renumbered Section 6 (former Section 7) on page 8 contains the following

language on lines 7 through 11: "If the human services department determines that the person is

eligible to be enrolled while incarcerated, the person shall be enrolled but the person's benefits

eligibility shall be placed on suspended status." The Medicaid and Food Stamp program cannot

determine an individual to be eligible while incarcerated. This language should be deleted

because the Department cannot "suspend" a person’s eligibility. The Department is not able to

complete the determination process until the individual is released and further documentation is

provided, and it cannot suspend the payment, as eligibility cannot be determined while the

person is incarcerated.

The appropriation to HB 85-a of $225 thousand for Fiscal Year 2006 to implement the Prerelease

Benefits Assistance Act is not stated as ongoing, but renumbered Section 6 (former Section 5)

mandates the Human Services Department on an ongoing basis to assist incarcerated persons

with mental disorders with their applications, complete prompt reviews of their application, and

determine eligibility for the Medicaid and Food Stamp programs.

Each year, several thousand persons are released from correctional facilities in Type A counties

and adult state correctional facilities. The Metropolitan Detention Center (MDC) in City of

Albuquerque/Bernalillo County released 37,786 persons calendar year 2004, releasing

approximately 3,000 persons per month. The Doña Ana Detention Center in Las Cruces released

12,184 persons calendar year 2004, releasing approximately 1,000 persons per month. The Santa

Fe County Detention Center in Santa Fe released 9,841 persons calendar year 2004, releasing

approximately 820 persons per month. The San Juan Detention Center in Farmington released

approximately 9,700 persons during calendar year 2004, releasing approximately 800 persons

per month. From these four facilities, there were 69,511 persons released during calendar year

2004, which equaled approximately 5,620 persons per month. In addition, the New Mexico

Corrections Department released approximately 1,600 persons during calendar year 2004,

releasing approximately 130 persons per month. The total number of persons released during

calendar year 2004 was approximately 71,111 persons, or approximately 5,750 persons per

month.

Approximately 11 additional FTE (10 staff and 1 supervisor) will be required to meet this

requirement of the Act at an estimated FTE cost of $157,088.60. Additional administrative costs

will require the purchase of computers at approximately $15,000.00; access line charge for the

automated eligibility system at $43,000 year; employee travel at $9,000; and furniture at

approximately $3,500. These costs amount to a total fiscal year cost of $227,588.60. Most of

these costs (approximately $209,088.60) will remain ongoing costs, and appropriations will be

required for ongoing Fiscal Years for funding the FTE, employee travel and data access line

charges.

The Human Services Department has been a part of the HJM 53 multi-agency task force,

convened by the Department of Corrections, that is studying barriers to, among other things,

public benefits. As part of that initiative, HSD is prepared to conduct training sessions for

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 4

Correction Department Discharge Planners and other personnel as appropriate, to allow them to

assist soon to be paroled individuals in the completion of applications for assistance, including

Medicaid. It is anticipated that this process would allow HSD to make a determination of

eligibility very quickly after an individual is paroled.

FISCAL IMPLICATIONS

The appropriation of $225 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to

the general fund.

Synopsis of Original Bill

House Bill 85 creates the “Prerelease Benefits Assistance Act.” This act facilitates the

community reintegration of persons with mental disorders or developmental disabilities

(hereinafter included with mental disorders) upon their release from jail, prison, detention centers

or other correctional facilities. It would enable released persons to receive benefits for which

they are entitled promptly upon their release from incarceration.

HB85 requires the Human Services Department to adopt rules providing that when a person with

a mental disorder is enrolled in Medicaid or Food Stamps and becomes incarcerated the person’s

eligibility for those programs (1) shall be suspended for as long as is permitted by federal

regulations; and (2) shall not be terminated unless the Department determines that the person no

longer meets the eligibility criteria under which originally qualified. The rules would also

provide that when such a person is released from incarceration, benefits would be fully restored

unless the Department determined that he was no longer eligible under any category.

The bill requires HSD, in conjunction with Corrections, CYFD and administrators of jails and

delinquency facilities to ensure the prompt restoration of benefits to an incarcerated person with

a mental disorder whose federal eligibility for federal Supplemental Security Income (SSI),

Social Security Disability Income (SSDI), Medicaid or food stamp benefits has been suspended

or terminated during incarceration. These agencies shall take reasonable actions to ensure that

cash benefits are reinstated upon release. Reasonable actions will be taken to (1) identify

incarcerated persons with mental disorders whose benefits from any of these programs were

suspended and ask if they wish to receive benefits upon release; (2) ensure that the person

wishing to receive benefits is given an application for reinstatement and provided assistance in

completing and filing the application at least thirty days prior to release; and (3) provide

assistance to the person throughout the application process from competent staff.

Corrections, CYFD and administrators of jails and delinquency facilities shall take reasonable

action to negotiate a prerelease agreement with the local office of the federal social Security

Administration.

HSD shall (1) establish application procedures for benefits on behalf of incarcerated persons

with mental disorders in anticipation of their release; and (2) promptly review the applications

and complete the review prior to each person’s release, provided that such reviews shall be

completed within thirty days from the date of receipt of the person’s application. The review

shall assess whether the person is eligible for SSI, SSDI, Medicaid or Food Stamps or is likely to

be eligible upon release. If determined eligible, while still incarcerated, he shall be enrolled but

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 5

his benefits suspended. The person shall be provided proper documentation to enable receipt of

benefits upon release.

If implementation of the Prerelease Benefits Assistance Act requires an amendment to the

Medicaid state plan, HSD shall apply for such an amendment within ninety days of the effective

date of the act and take reasonable actions to obtain federal approval of the amendment.

Significant Issues

The Human Services Department notes the following.

The Social Security Administration’s SSI program does allow for the processing of an SSI

application several months before an individual’s anticipated discharge or release from a public

institution. A pre-release agreement can be developed between an institution and the local Social

Security office.

The Medicaid program does not currently “suspend” eligibility. It is not clear as to whether the

current eligibility system (ISD2) could be modified in order to allow cases to suspend.

Adjustments in the Medicaid claims processing system would also be required so as to disallow

any billings while the individual was incarcerated. An individual’s period of eligibility is

normally either six or twelve months, at the end of which eligibility must again be established.

Any suspension may only extend to the date of the next required re-determination, as federal

regulations require that eligibility be re-determined at least every twelve months. Final

eligibility upon release would be dependent upon current circumstances and a final determination

cannot be made until the individual’s living circumstances are assessed.

Food Stamp Program Issues

•

HSD cannot determine eligibility for SSI or Social Security Disability benefits because

HSD is not responsible for the administration of such programs

•

HSD cannot determine a person eligible while the person is incarcerated

•

HSD cannot suspend benefit eligibility until the person is released

HSD can only furnish the proper documentation to eligible households once a determination has

been made that the applicant household is eligible to participate in the Food Stamp Program

.

DVR reports through contact with the Social Security Administration that cooperation already

exists between this federal program and the Department of Corrections. The agreement even

allows for a telephone application under certain circumstances when a prisoner is scheduled for

release with 30-90 days. Attached is a copy of the agreement.

FISCAL IMPLICATIONS

No appropriation is attached to HB 85 but it is anticipated expenditures would be incurred,

especially by the Human Services Department and/or Corrections. HSD projects the total annual

cost at $1.75 million with a need for 34 FTE comprising the principal expenditure. The 34 FTE

puts one caseworker in each of the primary 34 county ISD offices.

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 6

ADMINISTRATIVE IMPLICATIONS

As indicated above, changes must be made to the claims processing system so that claims are not

paid on a suspended case. For individuals who were on a home and community based waiver

prior to incarceration, their case would close after sixty days of non-receipt of waiver services in

accordance with regulations and the waiver agreement between the state and the Centers for

Medicare and Medicaid services (CMS). Promulgation of state Medicaid regulations would be

required as well as the submittal of an amendment to the home and community based services

waivers. The Department of Health’s Long Term Services Division (LTSD) may need to amend

its process for allocations to the Developmental disabilities Waiver. LTSD would also need to

address how to deal with the slot of an individual on the waiver who becomes incarcerated.

It is estimated that the additional workload on ISD county offices would require 34 additional

FTE in FY 2006.

MW/lg:yr

Attachment

AGREEMENT BETWEEN

THE SOCIAL SECURITY ADMINISTRATION

AND

THE NEW MEXICO DEPARTMENT OF CORRECTIONS

I. Purpose, Definitions and Anticipated Results

A. Purpose

The purpose of this agreement is to identify and formalize

procedures which will facilitate timely entitlement to

Supplemental Security Income (SSI) and Social Security

benefits for disabled and aged inmates of the New Mexico

Department of Corrections (NMDOC) system. These prerelease

application procedures will allow inmates to file for SSI

benefits prior to their release providing for a smoother

transition back into the community.

B. Definitions

1. "SSA" means Social Security Administration.

2.

"NMDOC" means New Mexico Department of Corrections.

3. “SSI" means Supplemental Security Income. SSI is a

Federal needs-based benefit provided under title XVI of

the Social Security Act. It is paid to aged (65 and

older), blind, or disabled individuals who meet all

eligibility criteria (e.g., limited income, resources,

citizenship, etc.).

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 7

4. "RSDI" means Retirement, Survivors, and Disability

Insurance. RSDI refers to Social Security benefits that

are funded from the Social Security trust fund. RSDI

benefits are provided under title II of the Social

Security Act.

5. "Disability" is defined by the Social Security

Administration as: A condition severe enough to keep you

from performing any type of substantial gainful activity

for at least 12 months or longer, or a condition which is

expected to result in death.

6. "Concurrent claim" is defined as a claim for both SSI

and RSDI filed at the same time.

7. "Medicare" is a Federal health insurance program that is

funded out of the Medicare trust fund and provided for

under title XVIII of the Social Security Act. Medicare

is available at the age of 65 for those individuals

eligible for Social Security retirement benefits. It is

also available to individuals who have been entitled to

Social Security disability benefits for two years (24

months). Medicare coverage is also available to some

individuals who can "buy-in" to it at age 65 or for some

patients on renal dialysis.

8.

"Medicaid" is a State medical assistance program that

provides medical assistance to the needy, and it is

provided for under title XIX of the Social Security Act.

In the State of New Mexico, individuals who are entitled

to an SSI payment are almost always entitled to Medicaid.

C. Anticipated Results

It is anticipated that with both SSA and NMDOC staff

working together, eligible inmates will have their

eligibility for SSI and/or RSDI benefits substantially

developed before they are released from prison.

II. Responsibilities of Each Agency

A.

Responsibilities of New Mexico Department of Corrections

1.

NMDOC will screen inmates who are potentially eligible

for SSI benefits and who can be released within 30 days

after SSA has established potential eligibility including

the disability determination if needed.

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 8

2.

NMDOC will provide a “Prisoner SSI Prerelease Claims

Flag” as written notification to SSA when an inmate is

identified as a prerelease claim candidate.

a.

SSI disability claims, and Disability Insurance claims

if filed concurrently, should be initiated no earlier

than 90 days prior to the inmate’s expected release

date.

b.

SSI claims for aged individuals should be initiated no

earlier than 30 days prior to the inmate’s expected

release date.

c.

Although the prerelease application procedure is a

process unique to the SSI program, RSDI applications

filed concurrently with SSI applications will be

included in prerelease procedures in this agreement.

Inmates, who are eligible only for RSDI benefits but

not the SSI prerelease process, should be referred to

the local SSA District Office to have their claims

taken upon release from prison.

3.

NMDOC will make the inmate available to SSA for a

telephone claims interview.

4.

NMDOC will notify the local SSA DO promptly of any

changes in circumstances that affect the release of the

inmate. NMDOC will also notify SSA when the inmate

leaves the facility and provide the new residence address

and telephone number.

5.

NMDOC will advise its correctional facilities about this

agreement.

6.

Although some individuals who are disabled or of

retirement age may not be eligible for RSDI benefits

themselves while incarcerated, they may have family

members who can receive RSDI benefits on their record.

NMDOC will accommodate telephone interviews by Social

Security employees with such inmates.

7.

NMDOC will designate a liaison at each facility to serve

as the contact point for any issues related to this

prerelease agreement.

B. Responsibilities of the Social Security Administration

1.

Upon receipt of the written notification of a prerelease

claim candidate, SSA will schedule a telephone

appointment to complete the SSI/SSA applications and

appropriate related forms. SSA will notify the NMDOC

contact regarding the date and time for the interview.

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 9

2.

SSA will contact the New Mexico Disability Determination

Services (DDS) and arrange for the DDS to train NMDOC

personnel on SSA's disability process and policies. Such

training will help NMDOC (1) identify individuals who are

most likely to meet SSA's definition of disabled, (2)

assist inmates in completing disability forms, and (3) be

aware of what types of medical evidence are needed by the

DDS to make a correct disability decision.

3.

SSA shall provide the name, address, and telephone number

of the SSA District Office contact for each NMDOC

facility that will participate in the prerelease

procedure.

4.

SSA will create a prerelease flag to be associated with

the claims file.

5.

SSA will process all claims in an expeditious manner.

6.

SSA will issue a memorandum to all New Mexico SSA

District Offices detailing the prerelease process with

NMDOC.

III. Duration and Modification of the Agreement

A. Duration

This agreement will be effective when signed by both

parties and shall remain in effect until terminated by

either party.

B. Modification

This agreement may be amended at any time by a written

modification of this agreement that satisfies both parties.

IV. Other NMDOC-SSA Agreements

This agreement does not alter any existing agreements

between NMDOC and SSA such as the “Incentive Payment

Memorandum of Understanding” for the payments to NMDOC for

timely reporting its inmates.

V. Signatures

Signature in witness hereto, the parties have executed this

agreement by their duly authorized officials.

SOCIAL SECURITY ADMINISTRATION

House Bill 85/aHCPAC/aHJC/aHAFC -- Page 10

By: _________________________ Date: _____________

Horace L. Dickerson, Jr.

Regional Commissioner, Dallas

NEW MEXICO DEPARTMENT OF CORRECTIONS

By: _________________________ Date: ______________

Jim Burleson

Cabinet Secretary, New Mexico Department of Corrections