Implement Kentucky State Supplementary Payment

[hua7450]

Summary

Implements Kentucky's State Supplementary Payment (SSP) — state-administered, state-funded optional supplement to federal SSI covering Personal Care Home, Community Integration Supplementation, Family Care Home, and Caretaker Services categories.

Closes #8018

Regulatory Authority

• KRS 205.245 (statute authorizing state supplementation): https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=46358
• 921 KAR 2:015 (regulation implementing the program): https://apps.legislature.ky.gov/law/kar/titles/921/002/015/
• CHFS Division of Family Support Operations Manual, Volume V — OMTL-690 effective 3/9/2026 (standards effective 1/1/2026): https://www.chfs.ky.gov/agencies/dcbs/dfs/Documents/OMVOLV.pdf#page=5
• SSA State Assistance Programs for SSI Recipients, January 2011 — Kentucky (historical context; SSA direct access returns 403, accessed via Wayback Machine): https://web.archive.org/web/2022/https://www.ssa.gov/policy/docs/progdesc/ssi_st_asst/2011/ky.html
• SSA State Assistance Programs for SSI Recipients, January 2002 — Kentucky (historical context): https://web.archive.org/web/2020/https://www.ssa.gov/policy/docs/progdesc/ssi_st_asst/2002/ky.html

Program Overview

• Administration: State-administered (Cabinet for Health and Family Services / Department for Community Based Services / Division of Family Support)
• Funding: State funds only (no federal pass-through; state administers because it runs on tighter eligibility than federal MSS)
• Current caseload: not reported in consulted sources (most recent figure is 3,974 recipients in January 2011 per SSA 2011 KY report Table 2)
• Effective since: January 1, 1974

Eligibility

Requirement	Source	How Modeled
Must be SSI-eligible (ABD + resource + immigration)	921 KAR 2:015 §4; CHFS Vol V MS 1700	is_ssi_eligible
Must actually receive SSI (income not too high)	Federal SSI income rules; KRS 205.245(3)	uncapped_ssi > 0 gate in ky_ssp_eligible
Must reside in Kentucky	921 KAR 2:015 §6; CHFS Vol V MS 1600	defined_for = StateCode.KY on all 7 KY SSP variables
Countable resources ≤ $2,000 / $3,000	921 KAR 2:015 §5; CHFS Vol V MS 2500	Transitive via is_ssi_eligible → meets_ssi_resource_test (federal limits match KY)
US citizen / qualified alien	921 KAR 2:015 §6; CHFS Vol V MS 1600	Transitive via is_ssi_eligible
Valid SSN	CHFS Vol V MS 1600	Transitive via is_ssi_eligible
Placed in one of 4 qualifying categories	921 KAR 2:015 §7; CHFS Vol V MS 1100, MS 1800	ky_ssp_category enum {PCH, CIS, FCH, CARETAKER, NONE}; category != NONE required

Benefit Amounts (CHFS Vol V MS 1200, effective 1/1/2026)

Category	Claim Type	Care Receivers	Monthly Amount	Source
Personal Care Home (PCH)	any	n/a	$1,610	MS 1200
Community Integration Supplementation (CIS)	any	n/a	$1,514	MS 1200
Family Care Home (FCH)	any	n/a	$1,166	MS 1200
Caretaker Services	Individual	n/a	$1,056	MS 1200
Caretaker Services	Individual w/ ineligible spouse	n/a	$1,056	MS 1200
Caretaker Services	Eligible couple	ONE receives care	$1,552	MS 1200
Caretaker Services	Eligible couple	BOTH receive care	$1,606	MS 1200

Couple treatment: PCH/CIS/FCH are treated as two individuals after month 1 (first-month combination is not modeled in steady state); Caretaker uses explicit couple rates with a care_receivers split (ONE/BOTH).

COLA: COLA-adjusted annually since 2021 per 921 KAR 2:015 (OMTL-680+). This PR encodes 2026 rates only.

Personal Needs Allowance

• PCH: $60/month
• FCH: $40/month

Stored as informational parameters in personal_needs_allowance/pch.yaml and fch.yaml. The research indicates PNA is a carve-out retained by the resident while the facility receives standard − countable_income. Per user decision, PNA is NOT deducted from ky_ssp — it is exposed through ky_ssp_personal_needs_allowance for reference only.

Requirements Coverage

REQ	Description	Parameter	Variable	Test
REQ-001	SSI-eligible (ABD + resource + immigration)	— (reuse federal)	ky_ssp_eligible	ky_ssp_eligible.yaml Cases 1, 3, 7
REQ-002	Kentucky residency	—	all via defined_for = StateCode.KY	ky_ssp.yaml Cases 7, 10
REQ-003	Income below combined fed+state benefit	— (via uncapped_ssi)	ky_ssp_eligible	ky_ssp_eligible.yaml Cases 8, 9; ky_ssp.yaml Cases 8, 11
REQ-004	Resources ≤ $2K / $3K	— (federal)	transitive via is_ssi_eligible	ky_ssp_eligible.yaml Case 7
REQ-005	Citizenship / qualified alien	—	transitive	implicit (upstream SSI)
REQ-006	Valid SSN	—	transitive	implicit (upstream SSI)
REQ-007	4 categories (PCH/CIS/FCH/Caretaker)	—	ky_ssp_category	ky_ssp.yaml Cases 1-6; ky_ssp_eligible.yaml Cases 1-6
REQ-008	PCH category	—	ky_ssp_category = PCH	ky_ssp_payment_standard.yaml Case 1
REQ-009	CIS category	—	ky_ssp_category = CIS	ky_ssp_payment_standard.yaml Case 2
REQ-010	FCH category	—	ky_ssp_category = FCH	ky_ssp_payment_standard.yaml Case 3
REQ-011	Caretaker category	—	ky_ssp_category = CARETAKER	ky_ssp_payment_standard.yaml Case 4
REQ-012	Standard by category × claim_type × care_receivers	payment_standard.yaml	ky_ssp_payment_standard	ky_ssp_payment_standard.yaml all 14 cases
REQ-013	2026 rates ($1,610/$1,514/$1,166/$1,056/$1,552/$1,606)	payment_standard.yaml	ky_ssp_payment_standard	ky_ssp_payment_standard.yaml Cases 1-6
REQ-017	Claim type enum (INDIVIDUAL / COUPLE_BOTH / COUPLE_ONE)	—	ky_ssp_claim_type	ky_ssp_claim_type.yaml all 4 cases
REQ-018	Caretaker both-eligible 50/50 split	payment_standard.yaml	ky_ssp (marital_unit.sum/2)	ky_ssp.yaml Cases 8, 9; integration.yaml Cases 5, 6
REQ-019	Caretaker one-eligible + ineligible spouse uses individual rate	payment_standard.yaml COUPLE_ONE rows	ky_ssp_payment_standard	ky_ssp_payment_standard.yaml Case 7; integration.yaml Case 12
REQ-020	PCH/FCH/CIS couple treated as individuals	payment_standard.yaml COUPLE rows = individual rate	ky_ssp_payment_standard	ky_ssp_payment_standard.yaml Cases 8, 10, 11
REQ-021	Spouses in different PCH/FCH cannot combine income	—	implicit via per-person standard	implicit (no cross-facility pooling)
REQ-022	max(0, standard − income_excess) formula	—	ky_ssp	ky_ssp.yaml Cases 1-4, 6, 7, 10, 11
REQ-023	PNA informational ($60 PCH / $40 FCH)	personal_needs_allowance/{pch,fch}.yaml	ky_ssp_personal_needs_allowance (not subtracted from ky_ssp)	ky_ssp_personal_needs_allowance.yaml all 5 cases

All 20 in-scope requirements are covered. 100% coverage.

Not Modeled (by design)

What	Source	Why Excluded
REQ-014, REQ-015, REQ-016: Historical rates (2002, 2010, 2011) and gap years (2003-2009, 2012-2025)	SSA 2002/2010/2011 KY reports	User chose 2026-only scope; backdating can be done in follow-up PR
REQ-024: Mandatory Minimum Supplementation	SSA 2011 KY report ("No recipients.")	Defunct grandfathered 1973 AABD sub-program; no active recipients
REQ-025: Third-party payments / TPL cooperation	921 KAR 2:015 §8; CHFS Vol V MS 1200	Facility-level third-party billing; not in PE data model
REQ-026: MI/ID Supplement	921 KAR 2:015 §7	Provider-level quarterly payment to Personal Care Homes, not household-level
REQ-027: Caretaker-is-relative exclusion	921 KAR 2:015 §7(4); CHFS Vol V MS 1800	No relational data in PolicyEngine linking a person to a named caretaker
REQ-028: PCH age-16 / FCH age-18 gates	CHFS Vol V MS 1800; SSA 2011 KY	Implicit via category assignment (user sets category directly)
REQ-029: Relative financial responsibility (first-month admission only)	SSA 2011 KY	Transient facility-admission detail; PolicyEngine models steady state
REQ-030: Facility licensure / IMD designation	CHFS Vol V MS 1800	Facility-level attribute, not household-level

Files

changelog.d/ky-ssp.added.md
policyengine_us/parameters/gov/states/ky/dcbs/ssp/
  payment_standard.yaml
  personal_needs_allowance/pch.yaml
  personal_needs_allowance/fch.yaml
policyengine_us/variables/gov/states/ky/dcbs/ssp/
  ky_ssp.py
  ky_ssp_care_receivers.py
  ky_ssp_category.py
  ky_ssp_claim_type.py
  ky_ssp_eligible.py
  ky_ssp_payment_standard.py
  ky_ssp_personal_needs_allowance.py
policyengine_us/tests/policy/baseline/gov/states/ky/dcbs/ssp/
  integration.yaml
  ky_ssp.yaml
  ky_ssp_claim_type.yaml
  ky_ssp_eligible.yaml
  ky_ssp_payment_standard.yaml
  ky_ssp_personal_needs_allowance.yaml

Plus registry edits:

• policyengine_us/variables/household/income/spm_unit/spm_unit_benefits.py — add ky_ssp to BENEFITS
• policyengine_us/parameters/gov/household/household_state_benefits.yaml — add - ky_ssp under KY

Verification TODO

• Verify 2026 payment standards against CHFS Vol V MS 1200 (OMTL-690)
• Verify eligibility logic against 921 KAR 2:015 §§4-7
• Consider backdating rates to cover 2002-2025 in follow-up PR
• CI passes

Test plan

• 58 YAML tests pass locally
• CI passes

[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 95.34%. Comparing base (d9908f5) to head (ff7d069).
⚠️ Report is 104 commits behind head on main.

Additional details and impacted files

@@             Coverage Diff             @@
##             main    #8019       +/-   ##
===========================================
+ Coverage   71.08%   95.34%   +24.25%     
===========================================
  Files        4295        8     -4287     
  Lines       61945      129    -61816     
  Branches      307        2      -305     
===========================================
- Hits        44036      123    -43913     
+ Misses      17908        6    -17902     
+ Partials        1        0        -1     

Flag	Coverage Δ
unittests	95.34% <100.00%> (+24.25%)	⬆️

Flags with carried forward coverage won't be shown. Click here to find out more.

☔ View full report in Codecov by Sentry.
📢 Have feedback on the report? Share it here.

🚀 New features to boost your workflow:

• ❄️ Test Analytics: Detect flaky tests, report on failures, and find test suite problems.