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Calculating Break-Even Points - 2011
The break-even point or BEP is the point at which an SSI recipient’s countable income causes the SSI cash benefit to be reduced to zero. Basically, the break even point is reached when the countable income equals or exceeds the SSI individual’s or couple’s applicable Federal Benefit Rate (FBR). The break-even point is not the same for every SSI recipient, but rather varies depending upon the individual’s or couple’s living arrangement, which determines the FBR, and countable income. The break-even point may be affected by each of the following specific factors alone, or in combination:
1. Amount of in-kind support and maintenance (ISM) received and whether ISM is valued under the VTR or PMV rule
2. Amount of unearned income received
3. Amount of earned income received other than wages
4. Eligible couple status or spouse-to-spouse deeming
5. Living arrangement – specifically when an individual resides in a Medicaid funded facility
6. Use of specific work incentives such as IRWE, BWE and/or PASS
For CWICs, the BEP generally refers to something more specific than the total amount of countable income a recipient can have before the SSI check is reduced to zero. Many SSI recipients who come to WIPA projects for counseling want to know how much they can earn before they lose their SSI check. The question these individuals pose relates only to the addition of earned income to whatever income circumstances already may be affecting the SSI check. It is important for CWICs to be able to make individual estimates of how much a person can generate in wages before the SSI payment stops.
The BEP is important because it generally indicates the transition from 1619(a) status to 1619(b) status in which SSI cash payments cease, but Medicaid eligibility may continue (assuming the individual meets ALL of the 1619b eligibility criteria). Knowing when this transition occurs and planning for the loss of SSI cash payments is important for making sure that extended Medicaid coverage is provided without interruption. This transition can be particularly challenging in states where SSA does NOT determine Medicaid eligibility.
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