SSA Announces 2.5 Percent COLA; LeadingAge NY Estimates Impact for ACFs

(Oct. 15, 2024) The Social Security Administration (SSA) has announced that Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5 percent in 2025.

Implications for Adult Care Facilities (ACFs) and Assisted Living

The State has not yet issued the SSI Maximum Benefit Levels Chart for 2025, but LeadingAge NY offers the below estimations for residents who receive the SSI and State Supplement Program (SSP) benefit who live in ACF and assisted living settings.

The 2.5 percent cost of living adjustment (COLA) applies only to the federal portion of the SSI Congregate Care Level 3 benefit, which is $943 per month in 2024, and to the personal needs allowance (PNA), which is $249 per month in 2024. Applying the 2.5 percent COLA to both figures, we estimate that the federal SSI benefit will be $967 and the PNA $255 per month in 2025 for ACF and assisted living residents. Given that the State does not build a COLA into the State portion of the benefit (SSP), that figure will remain at $694 per month in 2024. Thus, we expect that the total monthly benefit will be $1,661 per month, and the ACF will receive $1,406 per month when the PNA is taken into account. This translates to $46.22 per day.

Reminder of Required Notices

Again, we offer these estimates for planning purposes; however, we will inform members once the updated benefits chart is available and the Department of Health (DOH) issues its annual Dear Administrator Letter (DAL), including a notice to residents. As outlined in last year’s DAL, ACF operators who intend to increase the rates charged to residents are required to provide residents a written notice specifying the new rate at least 30 days prior to the date of the increase. Assisted living residences (ALRs) must provide 45 days’ notice before increasing the rate for residents who receive SSI. The operator may increase the rate with less than the requisite notice if the resident voluntarily agrees to such a rate increase in writing. In either case, operators are required to amend the admission/residency agreement and offer eligible residents, in writing, an opportunity to place PNA funds in a facility-maintained account if they do not already have a facility-maintained account for PNA.

Ongoing Push for Higher Rates

The ACF rate for SSI/SSP-eligible residents remains woefully inadequate, and LeadingAge NY continues to pursue a lawsuit regarding this issue.

Contact: Diane Darbyshire, ddarbyshire@leadingageny.org, 518-867-8828