Settlements Can Require a Different Approach with Some Types of Public Benefits
Let’s discuss the benefits of SNAP, or the federal Supplemental Nutrition Assistance Program. As settlement consultants we often deal with income tested benefits, most often Medicaid and Supplemental Security Income (SSI). A good structured settlement consultant has a wide array of tools to accommodate such benefits. This includes spreading payments over time to stay under income thresholds or paying the structure into a specialized trust to preserve benefits. While Medicaid and SSI are the ones we encounter the most, there are a number of other asset or means tested benefits to be cognizant of and to plan for accordingly.
One such benefit is SNAP, or the federal Supplemental Nutrition Assistance Program. For those of you who are Millennials or older, this is the old Food Stamp program, renamed in 2008 in response to a number of state level efforts to revise it. Accordingly, this year, the number of people on SNAP will exceed 41 million. This means there is a significant chance of encountering a claimant who relies on SNAP.
Disabled Recipients & SNAP
SNAP is income tested, though if the recipient is disabled the income thresholds are more generous. The government lists the income thresholds on the USDA website found here. If a claimant is already on SSDI (which we often see in the workers’ compensation arena), therefore they are automatically considered disabled for the SNAP program, making it easier to qualify.
SNAP Benefits Increasing
Finally, SNAP benefits are increasing this year (much like Social Security benefits) due to higher inflation. The new maximum SNAP benefit is worth $281. Each additional person in a household will have an extra $211 given to recipients.
Settlement Impact on Benefits
Having a holistic view of an injured person, which includes taking into account the impact a settlement might have on any income or means tested benefit. This can help remove barriers to settlement and provide injured persons with the best possible outcome.
By John McCulloch | Structured Settlement Consultant, Vice Chairman
John holds an MBA from the University of Phoenix, a JD from Kaplan University, and a BA in Business from St. Martin’s College. In addition, he has completed graduate studies in Electronic Commerce at the University of San Diego and holds the following professional designations: CSSC, FLMI, WCLS, AIAA, ACS, and CMSS™, as well as an accounting certification from the Department of Defense. His formal insurance training includes casualty, property, fidelity and Workers’ Compensation claims, as well as Life and Health underwriting.
