SUMMARY OF THE FAMILYCARE ACT OF 2000

Parents in Medicaid and Children’s Health Insurance Program (CHIP)The Family Care Act gives states the option to receive new federal funds to provide health insurance coverage to parents of children enrolled in CHIP and Medicaid. In order to be eligible for Family Care money, States must first expand eligibility to all children whose parents’ income is less than 200% of poverty (about $28,300 for a family of three) and eliminate any waiting lists or eligibility restrictions for children in CHIP. Beginning in 2006, all states must cover parents up to at least 100% of poverty, so that all parents and children below poverty will be guaranteed Medicaid coverage. Beginning in 2006, States will receive an enhanced federal match for covering children, pregnant women, and parents above the mandatory minimum Medicaid levels. Family Care provides $50 billion over 10 years for the coverage expansions; funding will be allotted to states under the same formula as CHIP.

Health Insurance for Families Moving from Welfare to Work

The Family Care bill allows individuals leaving welfare for work to keep their Medicaid health insurance coverage for up to one year by making the Transitional Medicaid Assistance (TMA) program permanent. States also have the option to provide TMA to more families and guarantee 12 months of eligibility for TMA.

Grant Program to Expand Health Insurance Coverage

The Family Care bill creates a grant program of $100 million per year over five years for State demonstrations that expand health insurance coverage to the uninsured through market innovation. Possible demonstrations include alternative group purchasing or pooling arrangements, individual or small group market reforms, and subsidies to individuals, employers or both for obtaining health insurance.

Additional Coverage Options

The Family Care bill also provides states with new incentives and options to extend coverage to 19 and 20-year olds, first-time pregnant women, and restore/create health benefits for legal immigrant children, pregnant women and parents through CHIP and Medicaid.

Outreach and Enrollment Improvements

The Family Care bill allows additional organizations, including schools, homeless shelters, and other social service offices, to determine whether children (or entire families) are presumptively eligible for Medicaid or CHIP. To ensure that families don’t fall through the cracks, States are required to check if children and parents who lose coverage under Medicaid are eligible for CHIP, and vice versa.

Simplified Application Requirements

States may use a single, simplified application for children enrolling in either Medicaid or CHIP. States also must make application and enrollment procedures the same in both programs.

Total Cost

Not available at this time. The bill provides $50 billion of new federal money. There would be additional costs due to the effect of finding and enrolling more children and some of the other provisions in the bill.