Section 416.2095 - Pass-along of Federal benefit increases(a)General. This section and the four sections that follow describe the rules for passing along increases in the Federal SSI benefit to recipients of State supplementary payments. (1) Section 416.2095(b) indicates when the pass-along rules apply to State supplementary payments.(2) Section 416.2096 describes the basic pass-along rules. The States must have an agreement to "pass-along" increases in Federal SSI benefits. A State passes along an increase when it maintains (rather than decreases) the levels of all its supplementary payments after a Federal benefit increase has occurred. Generally, a pass-along of the increase permits recipients to receive an additional amount in combined benefits equal to the Federal benefit increase. Except for the supplementary payment level made to residents of Medicaid facilities (see § 416.2096(d) ), a State can decrease one or more of its payment levels if it meets an annual total expenditures test.(3) Section 416.2097 explains the required combined supplementary/SSI payment level.(4) Section 416.2098 explains how to compute the March 1983, December 1981, and December 1976 supplementary payment levels.(5) Section 416.2099 discusses what information a State must provide to the Commissioner concerning its supplementation programs so that the Commissioner can determine whether the State is in compliance. That section also discusses the basis for findings of noncompliance and what will occur if a State is found out of compliance.(b)When the pass-along provisions apply.(1) The pass-along requirements apply to all States (and the District of Columbia) that make supplementary payments on or after June 30, 1977, and wish to participate in the Medicaid program.(2) The pass-along requirements apply to both optional State supplementary payments of the type described in § 416.2001(a) and mandatory minimum State supplementary payments as described in § 416.2001(c) , whether or not these State supplementary payments are Federally administered.(3) The requirements apply to State supplementary payments both for recipients who receive Federal SSI benefits and those who, because of countable income, receive only a State supplementary payment.(4) The requirements apply to State supplementary payments for recipients eligible for a State supplementary payment on or after June 30, 1977.(5) Supplementary payments made by a State include payments made by a political subdivision (including Indian tribes) where-(i) The payment levels are set by the State; and(ii) The payments are funded in whole or in part by the State.52 FR 36241, Sept. 28, 1987, as amended at 54 FR 19165, May 4, 1989; 62 FR 38455, July 18, 1997