Section R6-4-403. Economic need and similar benefits

A.      Economic need criteria.

1.        Economic need. The purpose of economic need criteria is to determine whether the client will contribute, in whole or in part, to the cost of those services for which an eco- nomic need test is required or not.

a.        An economic need test shall be applied for the fol- lowing services:

i.         Physical and mental restoration services;

ii.        Maintenance;

iii.      Transportation for other than diagnostic pur- poses;

iv.      Services to members of a handicapped individ- ual’s family necessary to the adjustment or rehabilitation of the handicapped individual;

v.        Telecommunications, sensory and other techno- logical aids and devices;

vi.      Occupational licenses, tools, equipment and initial stocks (including livestock) and supplies (including training books and materials);

vii.     Other goods and services which can reasonably be expected to benefit a handicapped individual in terms of his employability;

viii.   Nondiagnostic services provided to a client in extended evaluation are subject to economic need criteria.

b.        No test of economic need shall be applied as a con- dition for furnishing the following vocational reha- bilitation services:

i.         Evaluation of rehabilitation potential; i.e., diag- nostic and related services;

ii.        Transportation for diagnostic purposes only;

iii.      Counseling, guidance and referral;

iv.      Interpreter services for the deaf;

v.        Reader services, rehabilitation teaching ser- vices and orientation mobility services for the blind;

vi.      Vocational and other training services (avail- able similar benefits for higher education must be considered);

vii.     Placement.

c.        No test of economic need will be applied for those services provided with SSI/SSDI special funds (see Section R6-4-601 and R6-4-602).

2.        General considerations.

a.        Eligibility requirements for VR services will be applied without regard to the economic status of the applicant.

b.        All available client resources shall be utilized when providing services conditioned on economic need including all liquid assets (assets readily converted to cash by financial institutions limited to checking accounts, savings accounts, bonds, and securities) before considering economic need based on income.

c.        A client may be allowed to reserve liquid assets (as defined in subsection (A)(2)(a)) up to $2,500, but to reserve liquid assets, it must be documented that such a reserve is required for medical, health reasons or other disability related reasons; e.g., an individual without health insurance coverage but who is known to have or will have in the near future, substantial medical expenses. Counselor must exercise prudent judgment and must have prior supervisory approval before disallowing such assets.

d.        All similar benefits and financial assistance pro- grams must be explored and utilized (per instruc- tions in Section R6-4-303(B)) including work study programs.

e.        Economic need must be redetermined when a change in client’s financial status occurs. The yearly annual review of progress will include a review of the client’s financial status.

f.         Economic need criteria will be applied to the family unit for a dependent minor. A minor is anyone under 18 years of age who is dependent on parents, legal guardian, other family member. When the minor and family are estranged, and family is not contributing substantially to his welfare, the minor may be con- sidered as an independent adult.

g.        Economic need criteria will also be applied to the family unit for those VR clients who are non-minors

(adults) and who are currently being claimed as dependents for income tax purposes during the cur- rent tax year.

3.        Income.

a.        Income that must be counted is net wages after man- datory deductions such as income taxes, social secu- rity, taxes and mandatory retirement contributions.

b.        Also counted as income are:

i.         Financial  assistance  from  family  and  friends including trust funds, alimony and inheritance;

ii.        Welfare. ADC, GA, SSI;

iii.      Compensation. VA disability, SSDI, Work- men’s Compensation, U.I.,retirement, insur- ance settlements, etc.;

iv.      Interest,   dividends    and   fees    available   or received;

v.        Tribal or BIA assistance;

vi.      Child support payments.

c.        Any difference between similar benefits provided and actual cost of training or health maintenance must be considered as income, including but not limited to the following:

i.         Hospital or health insurance;

ii.        GI bill;

iii.      VA rehabilitation;

iv.      Educational grants;.

v.        Scholarships.

4.        The value of investment or income property owned by the client is considered in determining contributions to be made by the client to the costs of his rehabilitation ser- vices. Such are considered as assets and must be used to contribute to the cost of those rehabilitation services which are dependent on economic need. These cases will be handled on an individual basis. The counselor shall discuss them with supervisor and, as necessary, the Dis- trict Program Manager.

5.        Method of applying the economic need determination to client’s participation in the costs of the rehabilitation pro- gram:

a.        See R6-4-206(D) for instructions on how to apply economic need criteria to the provision of mainte- nance services;

b.        In making an economic need determination, all liq- uid assets will be applied to cost of services before considering client’s contributions based on monthly income;

c.        If client has income over 80% of the Arizona median income figures provided by Department of Eco- nomic Security for administration of Title XX, he shall contribute that portion towards the cost of ser- vices which have an economic need criteria. Every attempt must be made to have vendor agree to time payments for one-time purchases when client is able to contribute to only part of their costs.

d.        Exceptions to the above require prior approval by the supervisor.

B.       Similar benefits.

1.        Similar benefits are those benefits provided under pro- grams other than VR which, if available, are used to meet, in whole or in part, the cost of the same or similar VR service the Agency would otherwise provide.

2.        Use of similar benefits:

a.        Services for which similar benefits must be consid- ered and used, if available, are:

i.         Physical and mental restoration services;

ii.        Training, which includes:

(1)     Colleges, Community/Junior;

(2)     Vocational  training  in  private  or  public schools.

iii.      Maintenance;

iv.      Occupational  licenses,  tools,  equipment   and initial stocks and supplies;

v.        Transportation in connection with rehabilita- tion services (not for evaluation of rehabilita- tion potential);

vi.      Telecommunications, sensory and other techno- logical aids and devices;

vii.     Interpreter and reader services;

viii.   Rehabilitation  teaching  services  and  orienta- tion/mobility services for the blind.

b.        Similar benefits are not mandated for the following, but the counselor must make all efforts to acquire any similar benefits that may be available:

i.         OJT’s;

ii.        Work adjustment;

iii.      Remedial education;

iv.      Evaluation of rehabilitation potential;

v.        Counseling, guidance and referral;

vi.      Books, tools and other training materials;

vii.     Services to family members;

viii.   Most employment services necessary to main- tain handicapped client in suitable employ- ment.

c.        Similar benefits are to be utilized in all cases to the extent they are adequate, timely and do not interfere with achieving the rehabilitation objective of the individual.

d.        An exception is made to the similar benefits review if such would cause significant delay in the provi- sion of physical and mental restoration or mainte- nance services.

e.        Although services to family members and post- employment services are not listed as requiring a similar benefits’ review, a similar benefits’ review is required for all those services provided in these two service categories which are listed elsewhere as requiring such.

3.        General considerations.

a.        An individual is eligible for similar benefits when he is legally qualified to receive such service.

b.        The counselor must give full consideration of all available similar benefits.

c.        The counselor must use maximum effort to secure similar benefit for a rehabilitation service. This effort must be documented in the IWRP. Counselor also must use contracted services or services under cooperative agreements if such are available to the client.

d.        An individual eligible for similar benefits must uti- lize such insofar as they are adequate and do not interfere with achieving the rehabilitation objective of the individual.

Historical Note

Adopted effective June 14, 1977 (Supp. 77-3). Renum-

bered from R6-4-303 effective May 7, 1990 (Supp. 90-2).