Author: Sam Fish | Posted: 19. April 2010 03:53
The Centers for Medicare and Medicaid Services (CMS) released a letter to all state Medicaid directors on April 9 on how states can immediately expand Medicaid eligibility under the health care reform law to nearly all low-income legal residents, without regard to disability, parental status, or other categorical restrictions in earlier Medicaid law. CMS confirmed that states can set the income eligibility standard for these newly eligible individuals at any level up to 133 percent of the federal poverty level; that states may now use SSI or other, more liberal methods for determining income, rather than the adjusted gross income (AGI) method they must use when health care reform is fully implemented in January 2014; that no asset/resource standard is required; and that “benchmark” service coverage requirements apply. States can implement this Medicaid expansion retroactively to April 1, 2010 if they submit a state plan amendment to CMS by June 30, 2010; and they can phase in Medicaid expansion over the 2010-2013 period at the regular Medicaid Federal financial participation (FFP) rate (not the enhanced ARRA rate) without jeopardizing 100 percent FFP for the Medicaid expansion population in 2014-2016, after the expansion becomes mandatory. Medicaid expansion will then reach 16 million persons nationally. Ten states may see more than 50 percent increases in Medicaid recipients.
Connecticut Governor M. Jodi Rell confirmed on April 9 that Connecticut would pursue CMS approval to cover 45,000 general assistance residents under the Medicaid expansion option that is available now, at a potential savings to the State of Connecticut of $53 million on expenditures for 100 percent state-funded health services in the 15 months ending June 30, 2011. The Connecticut Department of Social Services has submitted the amendment to CMS. Other states offering state-funded health coverage while facing severe fiscal challenges are considering similar, targeted Medicaid expansions.
