“Steps To Economic Security” is intended to give you useful and practical information to help you better access and provide private financial resources for your disabled child. While the majority of items here deal with providing private financial resources, this guide also gives information about important government benefits.

UDES plans to continually expand the information provided here. Please check back regularly.

HOUSING

 

Fannie Mae offers mortgage loans through approved lenders to help disabled people and families with disabled family members who are low to moderate-income to purchase their own homes. This mortgage product is known as Community HomeChoice. Among other things, it provides extra flexibility for determining borrower income and qualifying ratios, allows a non-occupying co-borrower and provides that a legally appointed guardian or representative payee can be used to establish traditional or non-traditional credit.

To find out more about Fannie Mae affordable mortgages, and to locate Fannie Mae-approved lenders and counseling agencies, call Fannie Mae’s Consumer Resource Center at 1-800-732-6643 or 1-877-889-4327 or visit their website at www.efanniemae.com

 

 

Dependent Disabled Adults: Continuation of Private Health Care Coverage

 

Most states have laws which allow parents to continue health plan coverage for their disabled adult children, even past the point at which a child’s eligibility for dependent coverage would normally terminate because of their age.

California law, for example, allows coverage to continue if the disabled child can’t support him or herself by work because of “mental retardation or physical handicap” and if the disabled child is “chiefly dependent” on the insured parent for support and maintenance.

States usually require the insured parent to prove to the health plan that their child is disabled and dependent on them. Some states require this proof within a specific number of days before the child would otherwise “age out”. Other states require proof within a specific number of days after the child would otherwise “age out”. There may be a further requirement of re-certifying the child’s continuing disability.

To find out if your state has this kind of law, and if so, what it provides and may require you to do, read your contract (Evidence of Coverage) or check with your health plan or state insurance department.

 

Health plan denial of services: requesting an Independent Medical Review

 

In California, and other states, many health plans are denying, or limiting, coverage for autism-related therapies, such as Applied Behavioral Analysis, because they contend these therapies are not “medically necessary”. The term “medically necessary” has no standard definition in California—each plan defines it as they wish. However, in denying ABA as not being “medically necessary”, plans may take the position that the effectiveness of this therapy hasn’t been scientifically proven.

Under California law, you have the right to seek an Independent Medical Review if your plan has denied or limited coverage of a treatment on the ground (among others) that it is not deemed to be “medically necessary”.

Two California departments handle Independent Medical Reviews—the California Department of Insurance and the California Department of Managed Health Care. The one you must pursue an Independent Medical Review with depends upon who your insurer is.

For information in California, visit the California Department of Insurance website at www.insurance.ca.gov or call their Consumer Hotline at (800) 927-HELP. The Department also has a booklet, in English and Spanish, called “The Independent Medical Review Program.” The website for the California Department of Managed Health Care is www.dmhc.ca.gov. Click on the link to “Independent Medical Review.” To request an Independent Medical Review by phone, call (888) HMO-2219.

 

 

Public-Private Partnership: State of Washington Developmental Disabilities Endowment Trust Fund

 

The state of Washington is the only state in the country to recognize the vital importance of supporting families’ efforts to contribute to the lifetime financial care of disabled family members. In 1999, the state established a development disabilities endowment trust fund, now known as the Life Opportunities Trust.

As a special needs trust, the Life Opportunities Trust allows for private financial savings and investments which don’t jeopardize the disabled person’s government benefits, such as SSI (Supplemental Security Income). The Trust has been endowed by the state with $5 million to provide matches to private funds deposited in the Trust by families and others.

 

For more information, visit the Life Opportunities Trust’s website at www.ddlot.org

 

 

The “Disabled Adult Child” Social Security Benefit

 

When people think of cash benefits from the government for their disabled child, they usually think of SSI (Supplemental Security Income).

However, there is another government cash benefit which may be available which you should be aware of. It’s called “Social Security Disability Income”. Among other recipients, SSDI provides cash benefits to a “disabled adult child” (DAC).

A person can receive SSDI if they are a disabled adult child whose disability started before age 22, and has a parent covered by Social Security who retires, becomes disabled, or dies.

Why is the DAC benefit so important? Three main reasons:

For more information, visit the Social Security Administration website at www.ssa.gov.

 

 

 

 

Tax-Deductible Special Education Costs

 

In what’s called a “private letter”, the IRS recently ruled that the parents of two learning-disabled children could take a tax deduction for tuition they paid for special education.

The IRS concluded the tuition was tax-deductible because it was spent “principally to receive medical care in the form of special education.”

 

 

The Earned Income Tax Credit is available to people with earned incomes of less than $35,485. This credit can reduce the taxes you owe or even result in a tax refund.

 

Your EITC can be more if you have a "qualifying child". A qualifying child includes a child, regardless of age, who is "permanently and totally disabled". A child is considered permanently and totally disabled if he or she can't engage in any substantial gainful employment because of a physical or mental condition and a doctor has determined this condition can be expected to last continuously for at least a year or lead to death.

 

For more information, go to irs.gov and access Publication 596.

 

 

You may be able to claim the Child and Dependent Care Credit if you pay someone to care for your disabled child. The credit can be up to 35% of your expenses. These expenses must be paid so that you can work or look for work.

 

If your child is 13 or younger, and you can claim him or her as a tax exemption, you don't need to show that he or she is disabled. If the child is older than 13, you must be able to claim him or her as a tax exemption and show that your child is either physically or mentally incapable of caring for him or herself.

 

For more information, go to irs.gov and access Publication 503.

 

 

 

The information in “Steps to Economic Security” is not intended to create, and your receipt does not constitute, an attorney-client relationship. Nor is this information provided in the course of an attorney-client relationship and is not meant to constitute legal advice. Internet users and readers should not act on any information presented without first obtaining their own legal advice from an appropriately qualified attorney licensed in their state.

By the information presented here, UDES is not giving investment advice, tax advice or any other professional advice. The general financial and tax information provided here is designed to educate the user. No information presented takes into account all of the unique circumstances that may affect a particular user’s investment and financial decisions, and nothing contained here should be considered personalized investment or financial advice that is tailored to the user’s individual needs. No information presented should serve as the sole or primary basis for making investment or financial decisions. Users should consult their financial advisors or other appropriate professionals for advice on investments and other financial matters and develop a personalized plan or reach a decision that takes into account their individual needs and circumstances.