[Federal Register Volume 59, Number 62 (Thursday, March 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7690]
[[Page Unknown]]
[Federal Register: March 31, 1994]
=======================================================================
-----------------------------------------------------------------------
ACTION
45 CFR Parts 1207 and 1208
Senior Companion/Foster Grandparent Income Eligibility
AGENCY: ACTION.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule makes final the provisions of a proposed rule
published in the Federal Register on September 2, 1993 (58 FR 46602)
amending income eligibility regulations governing participation in the
Senior Companion Program (SCP) and the Foster Grandparent Program
(FGP). This amendment (1) decreases the current inequities in
determining income eligibility by being more responsive to the special
economic conditions affecting the elderly and (2) emphasizes the
Programs' focus on recruiting low-income individuals. The effect of
this amendment will be to meet more fully the FGP/SCP goals of
targeting low-income seniors and of taking into account circumstances
appropriate to local situations.
DATES: Effective date: May 2, 1994.
Implementation date: Provisions in Secs. 1207.3-5(a)(3) and 1208.3-
5(a)(3) will be implemented upon publication of the 1994 FGP/SCP notice
of income eligibility in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Thomas E. Endres at 202-606-5000.
SUPPLEMENTARY INFORMATION:
I. Background
Authorized under sections 211 and 213 of the Domestic Volunteer
Service Act of 1973, Public Law 93-113, as amended, the Senior
Companion Program and the Foster Grandparent Program provide volunteer
opportunities to low-income people age 60 and over. Administratively,
these programs are similar. Programatically, however, they differ as
SCP volunteers serve adults, primarily the frail elderly, while FGP
volunteers serve children and youth with special and exceptional needs.
Since these programs were authorized--FGP in 1965; SCP in 1973--
there have been few changes to the income eligibility requirements. In
1968, the Office of Economic Opportunity (OEO), which then administered
FGP, required that FGP use the OEO poverty income guidelines in
determining applicant eligibility. At that time, income eligibility was
based on 100 percent of the poverty level.
In 1974, the amount of Supplemental Security Income (SSI) provided
by states was used as a new factor in determining income eligibility
for people who lived in high cost-of-living areas so that they might
participate in the Programs.
In 1976, ACTION published an ACTION Order which added a definition
section to policy, including definitions for ``family,'' ``income'' and
``poor or low-income person.''
In 1978, Congress amended the Act to increase FGP/SCP income
eligibility levels to 125 percent of poverty.
In 1983, regulations revising income criteria were published in the
Federal Register. They required that the income of all household
members, rather than family members, be counted when determining annual
income. They also limited to one the number of household members who
could receive a stipend.
This rule modifies FGP/SCP income eligibility criteria. It
addresses a number of problems: Cost-of-living differences within and
among States; limitations inherent in the current definition of
``household''; absence of special consideration for individuals at or
below 100 percent of poverty; and failure to allow certain medical
expenses in the determination of income eligibility.
II. Participation in the Rulemaking
In September 1991, the Director of ACTION appointed an Older
American Volunteer Program Income Eligibility Task Force. Membership
included representatives from ACTION headquarters and field offices as
well as Senior Companion and Foster Grandparent project directors.
Their deliberations resulted in the development of this rule.
III. Comments
A notice of proposed rulemaking was published in the Federal
Register on September 2, 1993, with an October 18, 1993, deadline for
submission of comments. The Agency received a total of five letters--
four from project directors and one from an executive director of a
program grantee. One project director's comments enthusiastically
endorsed the proposed rule. The others had concerns relating to the
definitions of ``annual income'' and ``allowable medical expenses.''
Some commenters also expressed concerns about the cost-of-living
adjustments. Those suggestions and the Agency's response to them are
discussed below.
Sections 1207.1-2 and 1208.1-2 Definitions. Allowable medical expenses;
annual income
Allowable Medical Expenses
Two project directors commented that the 15 percent cap on medical
expenses should not be absolute. One suggested that project directors
be given some discretion to take into consideration ``extraordinary
medical expenses'' in the applicant's family. Another stated that ``a
15 percent cap on allowable medical expenses discriminates against
prospective FGP volunteers unfortunate enough to have medical costs
exceeding this 15 percent cap.''
The final rule will, for the first time in the Programs' histories,
allow medical expenses to be a factor in the computation of income
eligibility by allowing up to 15 percent of medical expenses to be
excluded under certain circumstances. This limit provides some
flexibility and consideration to medical costs while maintaining the
Programs' low-income focus and legislative mandate.
Annual Income
One commenter questioned a provision in the definition of ``annual
income'' which states that ``Project directors may count the value of
shelter, food, and clothing, if provided at no cost by persons related
to the applicant, enrollee, or spouse.''
The commenter was concerned about two potential ``inequities''
which might result: (1) That project directors would have discretion to
decide whether or not to ``count'' this income source and (2) that
different project directors would use different approaches in
determining this in-kind support.
These costs vary and depend upon each applicant's personal
circumstances. Consequently, they require individual consideration. The
Agency believes project directors can exercise discretion in deciding
appropriate inclusion of in-kind costs for housing, food, and clothing.
Further, the Agency believes that any attempt to issue specific
guidance in this area would be unnecessarily burdensome, and would
undermine local project operation. The Agency also believes that FGP/
SCP project directors can make reasonable determinations and exercise
prudent judgment to implement this provision.
Sections 1207.3-5(a)(3) Senior companions and 1208.3-5(a)(3) Foster
grandparents
One commenter recommended inclusion of an adjustment for excessive
housing costs, in addition to the new medical adjustments. Another
commenter suggested that the income eligibility level for FGP/SCP
volunteers be in keeping with Housing and Urban Development (HUD) low-
income guidelines. These suggestions were not adopted because the
Agency believes that the system proposed considers both housing costs
and incomes within particular areas. Any further income exclusions
would significantly dilute and diminish the Programs' focus on the low-
income elderly.
Sections 1207.3-5 Senior companions (a) (3) and (4) and 1208.3-5
Foster grandparents (a) (3) and (4)
One commenter stated that it was necessary for the Agency to assure
that provisions in paragraph (3) pertaining to the application of the
VISTA subsistence rate allowance be referenced in paragraph (4) thus
assuring that enrollees would not be jeopardized in the computation of
the allowed 20 percent.
The Agency does not see this as a problem. The final rule restates
existing language governing eligibility of enrollees. Paragraph (4)
states that ``Once enrolled, a Senior Companion/Foster Grandparent
shall remain eligible to serve and to receive a stipend as long as his
or her annual income, after deducting allowable medical expenses, does
not exceed the prescribed ACTION income eligibility guideline by 20
percent.'' The new provision, allowing the prescribed ACTION income
eligibility guideline to vary by an additional 10 percent in high cost
areas, merely sets a new base and does not affect the provisions in
paragraph (4).
IV. Impact of the Rule
The adjustment to the annual income guidelines embodied in this
final rule will:
--Emphasize the Programs' focus on low-income seniors.
--End the situation where a few States, by applying an SSI
supplementation, could potentially have a volunteer pool that is not
adequately comprised of low-income seniors.
--Provide a more equitable system that, to the extent possible,
accounts for real differences in cost of living within and among
states, as required.
--Provide a system that is simple and easy to administer. FGP/SCP would
obtain the most current VISTA subsistence rates which identify high
cost areas and use them to determine income eligibility levels in those
areas.
It will also provide opportunities to groups of low-income seniors
who may have been previously excluded from the Programs including:
--Low-income seniors who live with, but receive no support from,
relatives.
--Low-income seniors who live with roommates to save money.
--Seniors who live on low-incomes after paying out-of-pocket medical
expenses.
List of Subjects in 45 CFR Parts 1207 and 1208
Aged, Grant programs-social programs, Reporting and recordkeeping
requirements, Volunteers
Final Rule--Senior Companion Program
For the reasons set out in the preamble, 45 CFR part 1207 is
amended as set forth below.
PART 1207--SENIOR COMPANION PROGRAM
1. The authority citation for part 1207 continues to read as
follows:
Authority: Sec. 211(d); (e); 213, 221, 222, 223 and 402(14) of
Pub. L. 93-113, 87 Stat. 402, 403, 404, and 414, sec. 213 of Pub. L.
97-35, 97 Stat. 487, 42 U.S.C. 5011 (b), (d) and (e); 5021, 5022,
5023, 5042(14), and 5013.
2. Section 1207.1-2 is amended by removing the definition of
Household and by adding the following definitions in alphabetical
order:
Sec. 1207.1-2 Definitions.
* * * * *
Allowable medical expenses are annual out-of-pocket expenses for
health insurance premiums, health care services, and medications
provided to the applicant, enrollee, or spouse and were not and will
not be paid for by Medicare, Medicaid, other insurance, or by any other
third party and, shall not exceed 15 percent of the applicable ACTION
income guideline.
Annual income is counted for the past 12 months and includes: The
applicant or enrollee's income and, the applicant or enrollee's
spouse's income, if the spouse lives in the same residence. Project
directors may count the value of shelter, food, and clothing, if
provided at no cost by persons related to the applicant, enrollee, or
spouse.
* * * * *
3. Section 1207.3-1 is amended by adding a paragraph (v) reading as
follows:
Sec. 1207.3-1 Sponsor responsibility.
* * * * *
(v) Assure that individuals whose income is at or below 100 percent
of the poverty level receive special consideration for participation in
the Program.
4. Section 1207.3-5 is amended by revising paragraphs (a)(3),
(a)(4), and (c)(5) to read as follows:
Sec. 1207.3-5 Senior Companions.
(a) * * *
(3) To be enrolled, a Senior Companion cannot have an annual income
from all sources, after deducting allowable medical expenses, which
exceeds ACTION's income eligibility guidelines for the state in which
he or she resides. The ACTION income eligibility guideline for each
state is 125 percent of the poverty line as set forth in section 625 of
the Economic Opportunity Act of 1964, as amended by Pub. L. 92-424 (42
U.S.C. 2971d), except (i) in those primary metropolitan statistical
areas (PMSA), metropolitan statistical areas (MSA) and nonmetropolitan
counties identified by the Director as being higher in cost of living,
as determined by application of the VISTA subsistence rates, in which
case the guideline shall be 10 percent above that amount; and (ii) in
Alaska, where the guideline may be waived by the ACTION State Director
for individual locations if a project demonstrates that low-income
individuals, in that location, are participating in the project. No
Senior Companion currently participating in the Program, shall become
ineligible as a result of this change in guidelines.
(4) Once enrolled, a Senior Companion shall remain eligible to
serve and to receive a stipend as long as his or her annual income,
after deducting allowable medical expenses, does not exceed the
prescribed ACTION income eligibility guideline by 20 percent. Income
eligibility shall be reviewed annually by the sponsor.
* * * * *
(c) * * *
(5) Stipends. A Senior Companion will receive a stipend in an
amount determined by ACTION and payable in regular installments. The
minimum amount of the stipend is set by law and may be adjusted by the
Director from time to time. When both the eligible husband and wife
serve as a Foster Grandparent or Senior Companion, only one spouse
shall be entitled to receive a stipend. Both spouses in such cases
shall be entitled to other direct benefits. Only in cases where
enrolled Foster Grandparents or Senior Companions marry, may each
continue to receive a stipend.
* * * * *
Final Rule--Foster Grandparent Program
For the reasons set forth in the preamble, 45 CFR part 1208 is
amended as follows.
PART 1208--FOSTER GRANDPARENT PROGRAM
5. The authority citation for part 1208 continues to read as
follows:
Authority: Secs. 211(a), 221, 222, 223, and 402(14) of Pub. L.
93-113, 87 Stat. 402, 403, 404 and 414, 42 U.S.C. 5011 (a) and (f),
5021, 5022, 5023 and 5042(14).
6. Section 1208.1-2 is amended by removing the definition of
Household and by adding the following definitions in alphabetical
order:
Sec. 1208.1-2 Definitions.
* * * * *
Allowable medical expenses are annual out-of-pocket expenses for
health insurance premiums, health care services, and medications
provided to the applicant, enrollee, or spouse and were not and will
not be paid for by Medicare, Medicaid, other insurance, or other third
party and, shall not exceed 15 percent of the applicable ACTION income
guideline.
Annual Income is counted for the past 12 months and includes: The
applicant or enrollee's income and, the applicant or enrollee's
spouse's income, if the spouse lives in the same residence. Project
directors may count the value of shelter, food, and clothing, if
provided at no cost by persons related to the applicant, enrollee, or
spouse.
* * * * *
7. Section 1208.3-1 is amended by adding a paragraph (v) reading as
follows:
Sec. 1208.3-1 Sponsor responsibility.
* * * * *
(v) Assure that individuals whose income is at or below 100 percent
of the poverty level receive special consideration for participation in
the Program.
8. Section 1208.3-5 is amended by revising paragraphs (a)(3),
(a)(4), and (c)(5) to read as follows:
Sec. 1208.3-5 Foster grandparents.
(a) * * *
(3) To be enrolled, a Foster Grandparent cannot have an annual
income from all sources, after deducting allowable medical expenses,
which exceeds ACTION's income eligibility guidelines for the state in
which he or she resides. The ACTION income eligibility guidelines for
each state is 125 percent of the poverty line as set forth in section
625 of the Economic Opportunity Act of 1964, as amended by Pub. L. 92-
424 (42 U.S.C. 2971d), except: (i) In those primary metropolitan
statistical areas (PMSA), metropolitan statistical areas (MSA) and
nonmetropolitan counties identified by the Director as being higher in
cost of living, as determined by application of the VISTA subsistence
rates, in which case the guideline shall be 10 percent above that
amount; and (ii) in Alaska, where the guideline may be waived by the
ACTION State Director for individual locations if a project
demonstrates that low-income individuals in that location are
participating in the project. No Foster Grandparent currently
participating in the Program, shall become ineligible as a result of
this change in guidelines.
(4) Once enrolled, a Foster Grandparent shall remain eligible to
serve and to receive a stipend as long as his or her annual income,
after deducting allowable medical expenses, does not exceed the
prescribed ACTION income eligibility guideline by 20 percent. Income
eligibility shall be reviewed annually by the sponsor.
* * * * *
(c) * * *
(5) Stipends. A Foster Grandparent will receive a stipend in an
amount determined by ACTION and payable in regular installments. The
minimum amount of the stipend is set by law and may be adjusted by the
Director from time to time. When both the eligible husband and wife
serve as a Foster Grandparent or Senior Companion, only one spouse
shall be entitled to receive a stipend. Both spouses in such cases
shall be entitled to other direct benefits. Only in cases where
enrolled Foster Grandparents or Senior Companions marry, may each
continue to receive a stipend.
* * * * *
Dated: March 4, 1994.
James Scheibel,
Vice President, Corporation for National and Community Service,
Director, ACTION.
[FR Doc. 94-7690 Filed 3-30-94; 8:45 am]
BILLING CODE 6050-28-M
