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Ending California’s “Cash-Out” Policy
Mathematica Report Evaluates Effects on Food Security of Low-Income Seniors, People with Disabilities
Media Advisory: March 25, 2010
Contact: Amy Berridge, (609) 945-3378
Issue: In 1974, California opted to “cash-out” recipients of Supplemental Security Income (SSI) benefits from the Supplemental Nutrition Assistance Program (SNAP, formerly the Food Stamp Program). In lieu of SNAP eligibility for low-income seniors and people with disabilities receiving SSI, the state increased the State Supplementary Payments (SSP) by $10. A report from Mathematica Policy Research evaluates how eliminating “SSI cash-out” would affect Supplemental Nutrition Assistance Program (SNAP) eligibility and benefits for Californians receiving SSI and for non-elderly non-disabled family members living with them.
Quote: “When ‘SSI cash-out’ was created, California was able to save on SNAP administrative costs without reducing benefits for most recipients,” said Karen Cunnyngham, Mathematica senior program analyst and author of the report. “But in light of changes to SNAP, California’s SSP payments, and the economy, the California Food Policy Advocates wanted to reexamine the issue. Mathematica created three scenarios and estimated that ending California’s SSI cash-out policy under the current regulatory environment would increase the number of California households eligible for SNAP. However, total SNAP benefits flowing into the state would decrease, because some current SNAP households would become ineligible and others would qualify for lower SNAP benefits if the income of an SSI recipient in the household were considered in the SNAP eligibility and benefit determinations.”
Report: "Estimated Effects on the Supplemental Nutrition Assistance Program of Eliminating California’s SSI Cash-Out Policy," Karen Cunnyngham, February 2010
About Mathematica: Mathematica Policy Research, a nonpartisan research firm, provides a full range of research and data collection services, including program evaluation and policy research, survey design and data collection, research assessment and interpretation, and program performance/data management, to improve public well-being. Its clients include federal and state governments, foundations, and private-sector and international organizations. The employee-owned company, with offices in Princeton, N.J., Ann Arbor, Mich., Cambridge, Mass., Chicago, Ill., Oakland, Calif., and Washington, D.C., has conducted some of the most important studies of nutrition, health care, international, disability, education, family support, employment, and early childhood policies and programs.