As an insurance specialist assisting clients with Medicare and Medicaid enrollment, I frequently receive questions about legislative updates and how they impact everyday coverage. Recently, our office has been fielding calls from clients facing SNAP (Supplemental Nutrition Assistance Program) cuts to their food assistance benefit. According to the Supplemental Nutrition Assistance Program (SNAP), up to 78% of households using SNAP food benefits are working families earning income, which according to the Center for Budget and Policy includes over 41,000 Michigan children who are no longer able to participate in SNAP benefits since the law went into effect.
Many of the low-income families that we serve have asked if the decrease is a mistake or because of missing documentation. Unfortunately, the recent decrease in food assistance is not due to a clerical error or missing documentation but the federal “One Big Beautiful Bill Act” (OBBBA) passed by Congress and signed into law on July 4, 2025. The law set new national rules and limits for state-run programs, leading to the cuts in Michigan Medicaid and SNAP.
Under SNAP, monthly benefit amounts are based on a household’s net income, which is calculated by subtracting taxes and other qualifying expenses like shelter and utilities from gross income. Higher deductions result in a lower calculated net income and a larger SNAP benefit allotment.
The “One Big Beautiful Bill Act” increased work and eligibility rules for beneficiaries and decreased allowable expenses, like the Standard Utility Allowance, used to determine SNAP benefits. Many recipients, including those whose utility expenses are part of their monthly rent or whose bill comes in a landlord or roommate’s name rather than their own, will no longer be able to use those utility expenses to determine their household net income. This rule disproportionately affects our lower-income population as they are more likely to rent or have roommates in order to afford housing. Without this allowance, net income appears higher on paper, directly causing SNAP benefit cuts.
Another cost “OBBBA” no longer allows households to claim as an expense is basic internet service. Before “OBBBA”, internet costs were counted as a basic utility expense for SNAP calculations. Section 10104 of the “OBBBA” states that counting actual internet costs as part of a household’s utility expense is now illegal, which is forcing many low-income families to make a choice between paying for internet service, which is oftentimes needed for education and employment, or pulling those funds to pay for food.
What our clients are going through is more than frustrating, and we understand that we are oftentimes the first person to which our clients reach out. We do know that many of our families depend on these types of benefits and are facing unfathomable stress because of the cuts. While some cuts in food assistance may be due to missing documentation or clerical/processing errors, recent cuts are most likely due to the new regulations in the “OBBBA”.
Over the eight years I have owned my business, I recognized that many of my clients needed help collecting the required documents, filling out Social Security, Medicare, and Medicaid applications, and communicating with those government agencies. We will continue to do our best assisting our clients, but we are limited to the constraints of the changing laws.
If you or someone you know is facing food insecurity, please visit our Food Resources page for available assistance, or view our Boichot Events Calendar for upcoming community events.
Our next blog will focus on responding to cuts and finding resources to help when benefits are reduced or no longer available.
Why Choose a Local Insurance Broker
Medicare can be confusing, with Original Medicare, Medicare Advantage, Supplements, Parts A–D, and Plans A, C, F, G, and N all having different rules, costs, and coverage details. Even a small misunderstanding can lead to gaps in coverage or lifelong penalties.
Working with a licensed Medicare insurance broker gives you an expert who understands how the pieces work together, can explain options in plain language, compare plans based on your needs, help you make informed decisions, and assist you throughout the year. If you don’t have an agent, Annual Enrollment (October 7 – December 15) is the perfect time to get one!
Insurance agents/brokers must complete annual carrier training and certification to sell those carriers’ Medicare plans. They are expected to stay current on rules, laws, and legislative changes, including Social Security cost-of-living adjustments, that affect eligibility for plans and other programs seniors use.
Agents and brokers are paid by the insurance company when a client enrolls. Clients should never be charged a separate fee. Since compensation varies, it’s reasonable to ask how an agent is paid and whether they represent one company or several. A captive agent works for one insurance company while a broker can compare multiple companies to recommend the best fit for you.
Below are a few considerations when choosing your expert:
A health insurance broker can serve as your personal Medicare expert, helping you understand your options, compare area plans, and resolve billing or coverage issues. Boichot Insurance Agency invites you to visit boichotinsurance.com and connect with us at (616) 258-9182 or .
Why Michigan Families Are Seeing SNAP Benefit Cuts
As an insurance specialist assisting clients with Medicare and Medicaid enrollment, I frequently receive questions about legislative updates and how they impact everyday coverage. Recently, our office has been fielding calls from clients facing SNAP (Supplemental Nutrition Assistance Program) cuts to their food assistance benefit. According to the Supplemental Nutrition Assistance Program (SNAP), up to 78% of households using SNAP food benefits are working families earning income, which according to the Center for Budget and Policy includes over 41,000 Michigan children who are no longer able to participate in SNAP benefits since the law went into effect.
Many of the low-income families that we serve have asked if the decrease is a mistake or because of missing documentation. Unfortunately, the recent decrease in food assistance is not due to a clerical error or missing documentation but the federal “One Big Beautiful Bill Act” (OBBBA) passed by Congress and signed into law on July 4, 2025. The law set new national rules and limits for state-run programs, leading to the cuts in Michigan Medicaid and SNAP.
Under SNAP, monthly benefit amounts are based on a household’s net income, which is calculated by subtracting taxes and other qualifying expenses like shelter and utilities from gross income. Higher deductions result in a lower calculated net income and a larger SNAP benefit allotment.
The “One Big Beautiful Bill Act” increased work and eligibility rules for beneficiaries and decreased allowable expenses, like the Standard Utility Allowance, used to determine SNAP benefits. Many recipients, including those whose utility expenses are part of their monthly rent or whose bill comes in a landlord or roommate’s name rather than their own, will no longer be able to use those utility expenses to determine their household net income. This rule disproportionately affects our lower-income population as they are more likely to rent or have roommates in order to afford housing. Without this allowance, net income appears higher on paper, directly causing SNAP benefit cuts.
Another cost “OBBBA” no longer allows households to claim as an expense is basic internet service. Before “OBBBA”, internet costs were counted as a basic utility expense for SNAP calculations. Section 10104 of the “OBBBA” states that counting actual internet costs as part of a household’s utility expense is now illegal, which is forcing many low-income families to make a choice between paying for internet service, which is oftentimes needed for education and employment, or pulling those funds to pay for food.
What our clients are going through is more than frustrating, and we understand that we are oftentimes the first person to which our clients reach out. We do know that many of our families depend on these types of benefits and are facing unfathomable stress because of the cuts. While some cuts in food assistance may be due to missing documentation or clerical/processing errors, recent cuts are most likely due to the new regulations in the “OBBBA”.
Over the eight years I have owned my business, I recognized that many of my clients needed help collecting the required documents, filling out Social Security, Medicare, and Medicaid applications, and communicating with those government agencies. We will continue to do our best assisting our clients, but we are limited to the constraints of the changing laws.
If you or someone you know is facing food insecurity, please visit our Food Resources page for available assistance, or view our Boichot Events Calendar for upcoming community events.
Our next blog will focus on responding to cuts and finding resources to help when benefits are reduced or no longer available.
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