Apply Colorado's AND-CS payment floor and 3.549 income rules to every client

changelog.d/co-and-cs-payment-floor-3549.fixed.md

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+Apply Colorado's $13 AND-CS payment floor from January 2026, and count income for every AND-CS client under 9 CCR 2503-5 3.549: no unearned disregard for SSI-only clients, spousal and parental deeming without SSI's threshold, and the exemption for spouses and parents on SSI, Old Age Pension or Medicaid.

policyengine_us/parameters/gov/states/co/ssa/state_supplement/income/deeming/assistance_exemption_applies.yaml

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+description: Colorado does not deem income to an Aid to the Needy Disabled-Colorado Supplement client from a spouse or parent who receives Adult Financial grant payments, SSI or Medicaid with income no greater than the SSI limit, if this is true.
+
+values:
+  # Before March 2020, 3.545(F) excluded only the income from those benefits;
+  # the recipient's other income was deemed.
+  2002-01-01: false
+  2020-03-01: true
+
+metadata:
+  unit: bool
+  label: Colorado AND-CS deeming exemption for assistance recipients
+  reference:
+    - title: 9 CCR 2503-5, Section 3.549(F)
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=12428#page=95
+    - title: 9 CCR 2503-5, Section 3.549(F) (effective March 1, 2020)
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=8577#page=77
+    - title: 9 CCR 2503-5, Section 3.545(F) (effective January 1, 2020)
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=8443#page=63

policyengine_us/parameters/gov/states/co/ssa/state_supplement/income/disregards/earned.yaml

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+description: Colorado deducts this amount from monthly gross earned income when counting income for the Aid to the Needy Disabled-Colorado Supplement.
+
+values:
+  2002-01-01: 65
+
+metadata:
+  unit: currency-USD
+  period: month
+  label: Colorado AND-CS earned income disregard
+  reference:
+    - title: "9 CCR 2503-5, Section 3.549(A)(1)(a), (C)(2) #page 93-94"
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=12428#page=93
+    - title: SSA State Assistance Programs for SSI Recipients, January 2002 - Colorado (income exclusions same as federal)
+      href: https://www.ssa.gov/policy/docs/progdesc/ssi_st_asst/2002/co.html

policyengine_us/parameters/gov/states/co/ssa/state_supplement/income/disregards/earned_share.yaml

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+description: Colorado counts this share of earned income above the flat disregard for the Aid to the Needy Disabled-Colorado Supplement.
+
+values:
+  2002-01-01: 0.5
+
+metadata:
+  unit: /1
+  label: Colorado AND-CS countable share of earned income
+  reference:
+    - title: "9 CCR 2503-5, Section 3.549(A)(1)(b), (C)(3) #page 94"
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=12428#page=94
+    - title: SSA State Assistance Programs for SSI Recipients, January 2002 - Colorado (income exclusions same as federal)
+      href: https://www.ssa.gov/policy/docs/progdesc/ssi_st_asst/2002/co.html

policyengine_us/parameters/gov/states/co/ssa/state_supplement/income/disregards/unearned.yaml

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+description: Colorado disregards this amount of unearned income other than SSI, shared by a married couple, for the Aid to the Needy Disabled-Colorado Supplement.
+
+values:
+  2002-01-01: 20
+
+metadata:
+  unit: currency-USD
+  period: month
+  label: Colorado AND-CS unearned income disregard
+  reference:
+    - title: "9 CCR 2503-5, Section 3.549(A)(2)(c), (D)(2) #page 94-95"
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=12428#page=94
+    - title: SSA State Assistance Programs for SSI Recipients, January 2002 - Colorado (income exclusions same as federal)
+      href: https://www.ssa.gov/policy/docs/progdesc/ssi_st_asst/2002/co.html

policyengine_us/parameters/gov/states/co/ssa/state_supplement/payment_floor.yaml

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+description: Colorado raises an Aid to the Needy Disabled-Colorado Supplement grant below this amount to it with a state supplementary payment.
+
+values:
+  # Before 2026 Colorado met the SSI pass-along requirement by maintaining
+  # total expenditures, with irregular lump-sum payments and no payment floor.
+  2002-01-01: 0
+  2026-01-01: 13
+
+metadata:
+  unit: currency-USD
+  period: month
+  label: Colorado AND-CS payment floor standard
+  reference:
+    - title: 9 CCR 2503-5, Section 3.546(E), AND-CS payment floor standard
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=12428#page=92
+    - title: 9 CCR 2503-5, Section 3.546(E) (emergency rule effective January 1, 2026)
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=12318#page=74
+    - title: 9 CCR 2503-5, Section 3.546(C) (effective March 2, 2025), MOE payments without a payment floor
+      href: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?fileName=9+CCR+2503-5&ruleVersionId=11861#page=73
+    - title: "Colorado State Board of Human Services, Adult Financial Payment Floor and COLA 2026, rulemaking packet 2025-00596 #page 4,9"
+      href: https://www.sos.state.co.us/CCR/Upload/AGORequestEmergency/RegulatoryAnalysisAttachment2025-00596.pdf#page=4
+    - title: SSA State Assistance Programs for SSI Recipients, January 2011 - Colorado (passalong method)
+      href: https://www.ssa.gov/policy/docs/progdesc/ssi_st_asst/2011/co.html

policyengine_us/tests/core/test_co_and_cs_invariants.py

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+"""Property tests: Colorado AND-CS countable income, deeming and payment floor.
+
+9 CCR 2503-5 3.549(A) counts an AND-CS client's own income; 3.549(C)-(D)
+deem part of a spouse's income to the client, except under 3.549(F) when the
+spouse receives SSI, Old Age Pension or Medicaid with income within the SSI
+limit; 3.520.781(A) makes a client whose total countable income (SSI
+included) equals or exceeds the grant standard ineligible; and 3.546(E),
+3.549(B) raise a grant below the $13 payment floor standard to it.
+
+Each case is a disabled client aged 18-59 in their own household, with
+pension, interest and earnings, optionally receiving outside shelter
+support, and either single or married to a spouse who is not disabled and
+has earnings and a pension. Each married case appears four times: (A) the
+spouse is enrolled in Medicaid, (B) the spouse is not, (C) as B with extra
+spousal earnings, and (D) as B with the tax-unit roles swapped. Income can
+be high enough that the client gets no SSI; 3.546 then makes them no AND-CS
+client, and countable income, defined only for clients, is compared only
+between arrangements in which the client is one. For 2026:
+
+1. Payment: the supplement is the grant standard less total countable income
+   when that is positive, raised to the floor if below it, and zero otherwise;
+   so it is zero or between the floor and the standard.
+2. Singles: since 2012 the grant standard has equaled the SSI individual
+   benefit rate, and for a client 3.549(A) never counts less than SSI does,
+   so a single client in their own household is never paid. Where the client has no
+   earnings or at least $20 of unearned income other than SSI, 3.549(A) and
+   SSI's exclusions (20 CFR 416.1112, 416.1124) count the same income.
+3. Exemption: Medicaid enrollment of a spouse within the SSI limit can only
+   lower the client's countable income and raise the supplement.
+4. Monotonicity: for a client without in-kind support, more earnings for a
+   non-exempt spouse never lower the client's countable income or raise the
+   supplement. (In-kind support is excluded: 3.520.79(B)(6) charges a client
+   the ISM SSA charges, and SSA's presumed maximum value halves once spousal
+   deeming starts, so crossing SSI's deeming threshold lowers the client's
+   ISM by about as much as the deemed earnings rise.)
+5. Role invariance: the client's countable income and supplement do not
+   depend on which spouse is the tax-unit head.
+
+YAML states the worked cases; Python is needed to compare arrangements of
+the same household in one simulation.
+"""
+
+import numpy as np
+import pytest
+
+from policyengine_us import Simulation
+
+YEAR = 2026
+TOLERANCE = 0.01
+ARRANGEMENTS = "ABCD"
+
+
+def build_situation(cases):
+    people, groups = (
+        {},
+        {
+            name: {}
+            for name in (
+                "tax_units",
+                "marital_units",
+                "spm_units",
+                "families",
+                "households",
+            )
+        },
+    )
+    for i, c in enumerate(cases):
+        for arrangement in ARRANGEMENTS if c["married"] else "A":
+            key = f"{arrangement}{i}"
+            client, spouse = f"client_{key}", f"spouse_{key}"
+            people[client] = {
+                "age": {YEAR: c["client_age"]},
+                "is_disabled": {YEAR: True},
+                "meets_ssi_disability_criteria": {YEAR: True},
+                "pension_income": {YEAR: c["client_pension"]},
+                "interest_income": {YEAR: c["client_interest"]},
+                "employment_income": {YEAR: c["client_earnings"]},
+                "ssi_receives_outside_shelter_support": {YEAR: c["shelter_support"]},
+                # Set for everyone: an input for some people gives the others
+                # its default (false), not its formula.
+                "co_state_supplement_medicaid_enrolled": {YEAR: True},
+            }
+            members = [client]
+            if c["married"]:
+                extra = c["extra_spouse_earnings"] if arrangement == "C" else 0
+                people[spouse] = {
+                    "age": {YEAR: c["spouse_age"]},
+                    "employment_income": {YEAR: c["spouse_earnings"] + extra},
+                    "pension_income": {YEAR: c["spouse_pension"]},
+                    "co_state_supplement_medicaid_enrolled": {YEAR: arrangement == "A"},
+                }
+                members = [spouse, client] if arrangement == "D" else [client, spouse]
+                head, partner = members
+                people[head]["is_tax_unit_head"] = {YEAR: True}
+                people[head]["is_tax_unit_spouse"] = {YEAR: False}
+                people[partner]["is_tax_unit_head"] = {YEAR: False}
+                people[partner]["is_tax_unit_spouse"] = {YEAR: True}
+            for name, group in groups.items():
+                group[f"{name}_{key}"] = {"members": members}
+            groups["households"][f"households_{key}"]["state_code"] = {YEAR: "CO"}
+    return {"people": people, **groups}
+
+
+def calculate(cases):
+    """Arrays indexed by person name for the client of every arrangement."""
+    simulation = Simulation(situation=build_situation(cases))
+    names = list(simulation.populations["person"].ids)
+    results = {}
+    for variable, period in (
+        ("co_state_supplement", YEAR),
+        ("co_state_supplement_countable_income", YEAR),
+        ("co_state_supplement_eligible", f"{YEAR}-01"),
+        ("ssi", YEAR),
+        ("ssi_countable_income", YEAR),
+    ):
+        values = np.asarray(simulation.calculate(variable, period))
+        results[variable] = dict(zip(names, values))
+    parameters = simulation.tax_benefit_system.parameters(f"{YEAR}-01")
+    p = parameters.gov.states.co.ssa.state_supplement
+    return results, p.grant_standard, p.payment_floor
+
+
+def assert_properties(cases):
+    results, standard, floor = calculate(cases)
+    supplement = results["co_state_supplement"]
+    countable = results["co_state_supplement_countable_income"]
+    eligible = results["co_state_supplement_eligible"]
+    ssi = results["ssi"]
+    for i, c in enumerate(cases):
+        for arrangement in ARRANGEMENTS if c["married"] else "A":
+            client = f"client_{arrangement}{i}"
+            # Monthly amounts: the inputs and the program are constant
+            # within the year.
+            total = (ssi[client] + countable[client]) / 12
+            paid = supplement[client] / 12
+            # 1. Payment rule and bounds.
+            if eligible[client] and total < standard - TOLERANCE:
+                expected = max(standard - total, floor)
+                assert paid == pytest.approx(expected, abs=TOLERANCE), c
+                assert floor - TOLERANCE <= paid <= standard + TOLERANCE, c
+            elif eligible[client] and total > standard + TOLERANCE:
+                assert paid == 0, c
+        client = f"client_A{i}"
+        if not c["married"]:
+            # 2. Singles.
+            assert supplement[client] == 0, c
+            if eligible[client]:
+                federal = results["ssi_countable_income"][client]
+                assert countable[client] >= federal - TOLERANCE, c
+                other_unearned = c["client_pension"] + c["client_interest"]
+                if c["client_earnings"] == 0 or other_unearned >= 20 * 12:
+                    assert countable[client] == pytest.approx(federal, abs=TOLERANCE), c
+            continue
+        a, b, c_, d = (f"client_{x}{i}" for x in ARRANGEMENTS)
+        # The spouse's Medicaid and the head role do not change the client's
+        # SSI, so A, B and D have the same clients.
+        assert eligible[a] == eligible[b] == eligible[d], c
+        # 3. The Medicaid exemption only lowers countable income.
+        if eligible[b]:
+            assert countable[a] <= countable[b] + TOLERANCE, c
+        assert supplement[a] >= supplement[b] - TOLERANCE, c
+        # 4. More non-exempt spousal earnings never lower countable income,
+        # for a client who stays one and has no in-kind support.
+        if not c["shelter_support"]:
+            if eligible[b] and eligible[c_]:
+                assert countable[c_] >= countable[b] - TOLERANCE, c
+            assert supplement[c_] <= supplement[b] + TOLERANCE, c
+        # 5. Roles.
+        assert countable[d] == pytest.approx(countable[b], abs=TOLERANCE), c
+        assert supplement[d] == pytest.approx(supplement[b], abs=TOLERANCE), c
+
+
+def test_worked_example():
+    """co_state_supplement YAML Case 29: the client has no income and the
+    spouse earns $1,500/month. With the spouse on Medicaid, SSI pays 783.50
+    and 3.549(F) deems nothing: 994 - 783.50 = 210.50/month. Without
+    Medicaid, 3.549(C) deems (1,500 - 65) / 2 = 717.50 and the client is not
+    eligible."""
+    case = {
+        "client_age": 40,
+        "client_pension": 0,
+        "client_interest": 0,
+        "client_earnings": 0,
+        "shelter_support": False,
+        "married": True,
+        "spouse_age": 42,
+        "spouse_earnings": 18_000,
+        "spouse_pension": 0,
+        "extra_spouse_earnings": 1_200,
+    }
+    results, _, _ = calculate([case])
+    supplement = results["co_state_supplement"]
+    countable = results["co_state_supplement_countable_income"]
+    assert supplement["client_A0"] == pytest.approx(2_526, abs=TOLERANCE)
+    assert countable["client_A0"] == pytest.approx(0, abs=TOLERANCE)
+    assert supplement["client_B0"] == 0
+    assert countable["client_B0"] == pytest.approx(8_610, abs=TOLERANCE)
+    assert_properties([case])
+
+
+def test_clients_who_leave_ssi():
+    """Review counterexamples: a single client whose $1,025/month of
+    unearned income ends SSI, and a married client whose spouse's extra
+    earnings end SSI. Neither is then an AND-CS client, so neither has
+    countable income to compare."""
+    single = {
+        "client_age": 40,
+        "client_pension": 12_000,
+        "client_interest": 300,
+        "client_earnings": 0,
+        "shelter_support": False,
+        "married": False,
+        "spouse_age": 40,
+        "spouse_earnings": 0,
+        "spouse_pension": 0,
+        "extra_spouse_earnings": 1,
+    }
+    married = {
+        **single,
+        "client_pension": 0,
+        "client_interest": 0,
+        "married": True,
+        "spouse_earnings": 30_000,
+        "extra_spouse_earnings": 12_000,
+    }
+    results, _, _ = calculate([single, married])
+    assert results["ssi"]["client_A0"] == 0
+    assert results["ssi"]["client_C1"] == 0
+    assert results["ssi"]["client_B1"] > 0
+    assert_properties([single, married])
+
+
+def test_ism_basis_switch_at_ssi_deeming_threshold():
+    """Found by Hypothesis: a client with outside shelter support whose
+    spouse's income crosses SSI's spousal deeming threshold. SSA's presumed
+    maximum value drops from 994 / 3 + 20 = 351.33 to (1,491 / 3 + 20) / 2 =
+    258.50, and 3.520.79(B)(6) charges the client that ISM. The spouse's
+    deemed earnings rise by (250.58 - 65) / 2 = 92.79, so countable income
+    falls by $0.04 a month: no breach of 3.549, which deems every dollar."""
+    case = {
+        "client_age": 18,
+        "client_pension": 0,
+        "client_interest": 0,
+        "client_earnings": 0,
+        "shelter_support": True,
+        "married": True,
+        "spouse_age": 18,
+        "spouse_earnings": 1,
+        "spouse_pension": 2_958,
+        "extra_spouse_earnings": 3_006,
+    }
+    results, _, _ = calculate([case])
+    countable = results["co_state_supplement_countable_income"]
+    assert countable["client_B0"] == pytest.approx(6_934, abs=1)
+    assert countable["client_C0"] < countable["client_B0"]
+    assert_properties([case])
+
+
+try:
+    import hypothesis
+    import hypothesis.strategies as st
+except ImportError:  # pragma: no cover
+    hypothesis = None
+
+if hypothesis is not None:
+    # Each example builds a Simulation; on a loaded runner input generation
+    # can trip the too_slow health check, which says nothing about the model.
+    SLOW = [hypothesis.HealthCheck.too_slow]
+
+    def amount(high):
+        return st.one_of(st.just(0), st.integers(min_value=1, max_value=high))
+
+    @st.composite
+    def case(draw):
+        return {
+            "client_age": draw(st.integers(min_value=18, max_value=59)),
+            "client_pension": draw(amount(12_000)),
+            "client_interest": draw(amount(300)),
+            "client_earnings": draw(amount(20_000)),
+            "shelter_support": draw(st.booleans()),
+            "married": draw(st.booleans()),
+            "spouse_age": draw(st.integers(min_value=18, max_value=59)),
+            "spouse_earnings": draw(amount(30_000)),
+            "spouse_pension": draw(amount(12_000)),
+            "extra_spouse_earnings": draw(st.integers(min_value=1, max_value=12_000)),
+        }
+
+    @hypothesis.settings(max_examples=15, deadline=None, suppress_health_check=SLOW)
+    @hypothesis.given(st.lists(case(), min_size=1, max_size=8))
+    def test_properties(cases):
+        assert_properties(cases)