The federal government periodically makes a cost of living adjustment (COLA) to the following benefits:
Social Security Retirement, Survivor's and Disability Insurance (RSDI), including the deduction for Medicare
Supplemental Security Income (SSI)
Veterans Affairs (VA) benefits
Black Lung benefits
Railroad Retirement benefits
Other federal benefits
The Social Security Administration will notify the County Assistance Office (CAO) that federal benefits will increase as a result of a COLA. The notice, through the Income Eligibility Verification System (IEVS), will include the effective date and percentage of increase.
For each COLA, the CAO must change each individual’s payment towards the cost of LTC services. 55 Pa. Code § 121.3 (b) (3) (iii)
Exception: Individuals who get SSI or who have no payment toward cost of care expenses will not have a COLA. This includes A, J, M, some PAN 00, some PJN 00, and some PMN 00 categories. There is no need to send a notice in these cases
Example: Mr. W., who is 22 years old, was in a car accident that left him permanently disabled. Mr. W. was working but has no sick benefits or disability benefits from his job. He has no other source of income and is not paying for medical insurance. Mr. W. must apply for any income or resources he may be entitled to. The CAO decides that Mr. W. is eligible for MA LTC and authorizes benefits in category PJN 00. Mr. W. makes no payment for his LTC facility care. Because Mr. W. does not have a payment toward cost of care, there is no COLA.
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Updated March 12, 2012, Replacing October 31, 2008