2024 Changes to In-Kind Support and Maintenance Rules Affect SSI Benefits

Supplemental Security Income (SSI) benefits provide essential financial support to low-income older adults and individuals with disabilities to cover basic living expenses. The Social Security Administration (SSA) currently reduces SSI benefits for recipients who receive certain types of housing assistance, under a framework called in-kind support and maintenance (ISM). ISM includes assistance with shelter that SSA counts as part of an individual’s income, potentially lowering their SSI payments. However, SSA excludes specific items from ISM calculations, such as food and certain public assistance benefits, which do not affect SSI benefit amounts. Recent regulatory changes effective in 2024 modify these rules by excluding food as in-kind income and including Supplemental Nutrition Assistance Program (SNAP) benefits under the public assistance household rule. These updates have enabled approximately 400,000 seniors and disabled individuals to receive full or increased SSI benefits. SSA determines ISM by assessing whether the applicant resides in their own household or another household and calculates shelter costs based on a fair share of rent and utilities. There are two valuation methods for ISM: the value of the rental (VTR) and the presumed market value (PMV) rules. Notably, SSA excludes meals unless all are provided, focusing ISM valuation solely on shelter expenses. Strategies to avoid SSI reductions due to ISM include ensuring the individual pays their fair share of housing costs and using valid loan agreements that are not counted as ISM. Additionally, ABLE accounts offer another mechanism for individuals with disabilities to save and pay for shelter expenses without affecting SSI eligibility, with proposed legislation aiming to increase allowable asset limits for savings. Understanding these ISM regulations and recent changes is critical for insurance advocates to ensure accurate SSI benefit calculations and to identify pathways for maximizing financial support for vulnerable populations.