Streamlining Medical Expense Deductions
The SNAP Excess Medical Expense Deduction allows for elderly and disabled household members to deduct from their net income allowable out-of-pocket medical costs totaling more than $35 a month.
Allowable costs are broadly defined as expenses related to the following:
- most medical, optical, behavioral, and dental health expenses, such as bills, prescriptions, over-the-counter medications, supplies, or alternative therapies when recommended or approved by a doctor;
- dentures, inpatient and outpatient hospital expenses;
- nursing or attendant services;
- medically necessary transportation costs;
- home renovations or equipment to increase accessibility;
- specially trained service animals;
- attendant care;
- loan payments resulting from medical expenses; and
- health insurance premiums, co-pays, and deductibles.
Impact of Medical Expense Deduction on Benefits
Claiming the medical expense deduction lowers net income, which can increase monthly SNAP benefits or make an otherwise ineligible household eligible for SNAP. A 2014 Center on Budget and Policy Priorities report estimates, “for a typical senior living alone, claiming $50-$200 in medical expenses can result in an additional $7-$69 in SNAP benefits a month.”
In 21 states as of federal fiscal year 2021, qualified SNAP households can elect to claim a standard medical expense deduction, which decreases the burden of documenting additional expenses after the first $35.01. Standard medical expense deductions vary by state:
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Encouraging eligible applicants to claim medical expenses
mRelief recently partnered with the AARP Foundation to offer seniors and adults with disabilities in Illinois, Kentucky, and Florida a streamlined process for claiming medical expenses while applying for SNAP.
As a part of this initiative we reviewed the way in which we currently ask about medical expenses in our SNAP applications. We adjusted our question to include the language of “out-of-pocket medical costs'' and the minimum amount that they would be required to claim. We included examples of common medical costs that some users may not consider. Some examples include insurance premiums and the costs associated with the care of a service animal.
Once the application is completed, a user can upload proof of their out-of-pocket costs just by texting us a picture of their document. We then add that documentation to their submitted application.
