Low-Income/Poverty
The Food Stamp Program And Older Americans
Fact Sheet
Enid Kassner, AARP Public Policy Institute
February 2001
Table of Contents: Introduction | Number of Elderly Participants (Persons Age 60 and Older) | Characteristics of Older Participants | Participation Rates | Eligibility | Special Provisions for Older Households | Benefits | Policy Issues
Introduction
The Food Stamp Program (FSP) is the primary form of federal nutrition assistance for low-income people. In fiscal year 1999, expenditures for the FSP totaled $17.7 billion.
Number of Elderly Participants (Persons Age 60 and Older)
Twenty percent of all food stamp households contain at least one person age 60 and older. Households with older persons are, on average, smaller than the typical food stamp household. As a result, only 9 percent of all individuals who receive food stamps are age 60 or older. Some 1.7 million older individuals (living in 1.5 million households) received food stamps in 1999.
Characteristics of Older Participants
In 1999 (the most recent year for which data are available):
- Seventy-nine percent of elderly food stamp households contained a single person;
- Seventy-two percent of older food stamp participants were female;
- Average monthly gross income (before taking allowable deductions) for elderly households was $605;
- Food stamp households with elderly members had an average of $245 in countable assets, and more than half (56 percent) of such households had no countable assets;
- Fourteen percent of older households claimed a medical expense deduction, with an average amount of $114 per month.
Top of PageParticipation Rates
Participation by older persons in the FSP is low: only 30 percent of eligible households containing an elderly member received food stamps in 1998, compared to 69 percent for children. It should be noted that the participation rate among children declined sharply (from 86 percent in 1994) as a result of welfare reform. Studies have found that the primary reason eligible older persons fail to participate is that they do not think they are eligible for the program. Many mistakenly believe their income or assets are too high.
Eligibility
Eligibility is based on financial need: participants must meet federally determined levels for both income and cash assets. However, criteria differ somewhat for elderly (age 60 and older) and disabled households. Such households may have up to $3,000 in cash assets (other households are allowed only $2,000), and their monthly income must be below the federal poverty guideline, after taking all allowable deductions. In fiscal year 2001, net monthly income cannot exceed $696 for a single older individual, or $938 for an older couple.
"Assets" do not include the house one lives in, personal belongings, burial plots, or the cash value of any life insurance policy. Energy assistance payments may not be considered as income.
Special Provisions for Older Households
Congress has attempted to facilitate participation by elderly and disabled persons by enacting special provisions in the FSP law. In addition to those mentioned above, special provisions include:
-
Application — Social Security and Supplemental Security Income (SSI) recipients may receive food stamp applications at the Social Security office. SSI participants also are to be assisted in completing an application;
- Certification — Households in which all members are 60 or older may have the in-office interview requirement waived;
- Coupon Issuance — Elderly households that are unable to reach an issuance office to obtain their coupons must be given assistance in receiving such coupons;
- Medical Deduction — Elderly households may deduct medical expenses, including Medicare premiums, in excess of $35 per month; and
- Use of Food Stamps — Older persons may use food stamps to purchase meals in certain approved restaurants that sell food at special reduced prices.
Benefits
Food stamp benefit levels are based on Department of Agriculture estimates of a low-cost meal plan called the "Thrifty Food Plan" (TFP.) The benefit level is then reduced by 30 cents for every dollar of household income (after allowable deductions). Benefits are reduced because households are presumed to be able to allocate about one-third of their own income for purchasing food. The value of the TFP is adjusted annually for increases in food prices. In 1999, the average monthly benefit was $46 for a single older person and $61 per elderly household. Twenty-eight percent of older households received the minimum food stamp benefit of $10 per month. In 2001 the maximum food stamp benefit (for people of any age) is $130 per month for one person and $238 per month for a couple.
Policy Issues
By October 1, 2002, states must issue food stamp benefits through electronic benefit transfer (EBT) systems. These systems provide a food stamp "debit card" that is used in lieu of paper coupons. While these systems have some potential to reduce theft, they may limit the locations at which beneficiaries can purchase food. This type of technology also is unfamiliar to some older persons and may negatively affect participation.
Written by Enid Kassner, AARP Public Policy Institute
February 2001
©2001 AARP
May be copied only for noncommercial purposes and with
attribution; permission required for all other purposes.
Public Policy Institute, Public Affairs, AARP, 601 E Street, NW,
Washington, DC 20049
Pub ID: FS20R