The Reference Family Threshold

Determining the poverty threshold using the "Reference Family" method involves starting with the threshold for the reference family (typically a two adult, two child family), and then modifying it to account for various characteristics of the family. In TRIM, if the value of ReferenceThresholdType is "one reference threshold" then the reference family threshold is obtained from the rule ReferenceFamilyThreshold. If the value is "reference threshold varies by tenure" then the appropriate value is obtained from ReferenceThresholdsByTenure.When UseDetailedPovertyThresholds indicates that reference family based thresholds are to be used and ReferenceThresholdType indicates that reference threshold varies by tenure, TreatmentNoCashRentHH indicates how households that report living rent free are treated when obtaining the reference threshold by tenure (home owner/renter status). A household is considered to rent if Tenure = 2 or 3 (rented for cash, or no cash rent). Else, the household owns with mortgage if the variable specified by MortgageStatus is 1. The reference threshold is then modified as follows:

If TreatmentOfMOOP is "MOOP is in reference threshold", then:

1. The threshold is separated into two pieces -- one that represents out-of-pocket medical expenses, and another representing the remainder. The rule MOOPPercentOfThreshold specifies the portion which represents out-of-pocket medical expenses.
2. The out-of-pocket portion is multiplied by the appropriate value from the MedicalRiskFactor rule, which adjusts for health-related characteristics of the family. The MedicalRiskFactor is influenced by several parameters (see below).
3. The other portion of the threshold is multiplied by the appropriate value from the rule group Equivalence Ratios, which adjusts for family size and the number of related children.
4. The two adjusted portions of the threshold are then combined and multiplied by a geographic adjustment factor (see below).

If TreatmentOfMOOP is "MOOP is added to threshold", then

1. The geographic adjustment factor is applied to the family reference threshold.
2. The geographically adjusted threshold is multiplied by the appropriate value from the rule group Equivalence Ratios, which adjusts for family size and the number of related children.
3. The amount specified in MOOPValueAddedToThreshold is added to the adjusted family reference threshold.

Determining the Geographic Adjustment Factor

The geographic adjustment factor is calculated and applied to the reference threshold as follows:

1. If GeographicAdjustmentType is "Adjusted by state urban/rural status" the appropriate adjustment factor is obtained from GeographicAdjustment which varies by state and by urban, rural and unidentified areas. If GeographicAdjustmentType is "Adjust by geographic divisions specified in GeographicAreaVariable then the adjustment factor is specified by GeographicAreaFactor. A geographic division code for each household has to be provided through variable list rule GeographicAreaVariable. The code specified in GeographicAreaVariable has to be equal to one of the codes listed in GeographicAreaCode and the respective adjustment factor has to be the value at the corresponding array location in array rule GeographicAreaFactor. If GeographicAdjustmentType is "Adjust by identified MSA and remaining urban, rural and non-identified portion of each state", values for identified MSAs are obtained from the database table specified by MSAGeographicAdjustmentTable. MSA_Identifier indicates the MSA identifier variable used in referencing the table (typically CBSAFIPSCode). Values for households that are not in an individually identified MSA are obtained from GeographicAdjustment and vary by state and by urban, rural, and unidentified urban/rural status.
2. The geographic adjustment factor is multiplied to a percentage of the threshold specified in GeoAdjustPercentOfThreshold. If ReferenceThresholdType is 'One reference threshold' then the geographic adjustment percentage is taken from the first value of GeoAdjustPercentOfThreshold. Otherwise, if ReferenceThresholdType is 'Reference threshold varies by tenure' then the GeoAdjustPercentOfThreshold specifies the geographic adjustment percentage by tenure status (rents, owns with mortgage, or owns without mortgage).

Determining the Medical Risk Factor

MedicalRiskFactor is influenced by whether a family member has private, public or no health insurance, whether or not a family member is elderly, the unit size and whether one or more of the family members is found to be in 'fair/poor health'.

• Private insurance: A family member has private insurance if one of the variables specified through variable list rule PrivateHealthInsurance is 1. Program rule PrivateHealthInsurance contains a list of variable(s) that indicate whether any person in the family is covered by private health insurance. Typically, input schema variables HealthGroupCoverage, HealthCoveredNonGroup, and HealthCoveredOutsideHh are specified in the PrivateHealthInsurance program rule.
• Public insurance: If rule UseReportedEnrollment is 'Yes' then the reported variables HealthMedicaidCoverage, HealthMedicareCoverage and HealthCHIPCoverage indicate whether or not a family member is covered by public insurance. Otherwise, if UseReportedEnrollment is 'No' then the simulated variables specified in variable list rules MedicaidEnrollment and MedicareEnrollment are used to identify coverage. Units with elderly members are always assumed to at least have public coverage.
• Elderly: A family member of age 65 or older is considered to be elderly.
• Health condition: If rule HealthStatusMethod is 'Use reported health status' then the health status is obtained from the reported variable HealthCurrentCondition. Otherwise, if HealthStatusMethod is 'Use ADLs and SSI disability status' then a person is considered to be in fair or poor helath if he or she has at least one of the Activity of Daily Living (ADL) limitations identified in the variables specified for HealthStatusADLs, or is aged 19 or older and is disabled according to the SSI variable specified through DisabilityIndicator.