Laws: Cases and Codes : U.S. Code : Title 42 : Section 1396r-6


   
U.S. Code as of: 01/19/04
Section 1396r-6. Extension of eligibility for medical assistance

    (a) Initial 6-month extension
      (1) Requirement
        Notwithstanding any other provision of this subchapter, each
      State plan approved under this subchapter must provide that each
      family which was receiving aid pursuant to a plan of the State
      approved under part A of subchapter IV of this chapter in at
      least 3 of the 6 months immediately preceding the month in which
      such family becomes ineligible for such aid, because of hours of,
      or income from, employment of the caretaker relative (as defined
      in subsection (e) of this section) or because of section
      602(a)(8)(B)(ii)(II) )1(! of this title (providing for a
      time-limited earned income disregard), shall, subject to
      paragraph (3) and without any reapplication for benefits under
      the plan, remain eligible for assistance under the plan approved
      under this subchapter during the immediately succeeding 6-month
      period in accordance with this subsection.

      (2) Notice of benefits
        Each State, in the notice of termination of aid under part A of
      subchapter IV of this chapter sent to a family meeting the
      requirements of paragraph (1) - 
          (A) shall notify the family of its right to extended medical
        assistance under this subsection and include in the notice a
        description of the reporting requirement of subsection
        (b)(2)(B)(i) of this section and of the circumstances
        (described in paragraph (3)) under which such extension may be
        terminated; and
          (B) shall include a card or other evidence of the family's
        entitlement to assistance under this subchapter for the period
        provided in this subsection.
      (3) Termination of extension
        (A) No dependent child
          Subject to subparagraphs (B) and (C), extension of assistance
        during the 6-month period described in paragraph (1) to a
        family shall terminate (during such period) at the close of the
        first month in which the family ceases to include a child,
        whether or not the child is (or would if needy be) a dependent
        child under part A of subchapter IV of this chapter.
        (B) Notice before termination
          No termination of assistance shall become effective under
        subparagraph (A) until the State has provided the family with
        notice of the grounds for the termination.
        (C) Continuation in certain cases until redetermination
          With respect to a child who would cease to receive medical
        assistance because of subparagraph (A) but who may be eligible
        for assistance under the State plan because the child is
        described in clause (i) of section 1396d(a) of this title or
        clause (i)(IV), (i)(VI), (i)(VII), or (ii)(IX) of section
        1396a(a)(10)(A) of this title, the State may not discontinue
        such assistance under such subparagraph until the State has
        determined that the child is not eligible for assistance under
        the plan.
      (4) Scope of coverage
        (A) In general
          Subject to subparagraph (B), during the 6-month extension
        period under this subsection, the amount, duration, and scope
        of medical assistance made available with respect to a family
        shall be the same as if the family were still receiving aid
        under the plan approved under part A of subchapter IV of this
        chapter.
        (B) State medicaid "wrap-around" option
          A State, at its option, may pay a family's expenses for
        premiums, deductibles, coinsurance, and similar costs for
        health insurance or other health coverage offered by an
        employer of the caretaker relative or by an employer of the
        absent parent of a dependent child. In the case of such
        coverage offered by an employer of the caretaker relative - 
            (i) the State may require the caretaker relative, as a
          condition of extension of coverage under this subsection for
          the caretaker and the caretaker's family, to make application
          for such employer coverage, but only if - 
              (I) the caretaker relative is not required to make
            financial contributions for such coverage (whether through
            payroll deduction, payment of deductibles, coinsurance, or
            similar costs, or otherwise), and
              (II) the State provides, directly or otherwise, for
            payment of any of the premium amount, deductible,
            coinsurance, or similar expense that the employee is
            otherwise required to pay; and

            (ii) the State shall treat the coverage under such an
          employer plan as a third party liability (under section
          1396a(a)(25) of this title).

        Payments for premiums, deductibles, coinsurance, and similar
        expenses under this subparagraph shall be considered, for
        purposes of section 1396b(a) of this title, to be payments for
        medical assistance.
    (b) Additional 6-month extension
      (1) Requirement
        Notwithstanding any other provision of this subchapter, each
      State plan approved under this subchapter shall provide that the
      State shall offer to each family, which has received assistance
      during the entire 6-month period under subsection (a) of this
      section and which meets the requirement of paragraph (2)(B)(i),
      in the last month of the period the option of extending coverage
      under this subsection for the succeeding 6-month period, subject
      to paragraph (3).
      (2) Notice and reporting requirements
        (A) Notices
          (i) Notice during initial extension period of option and
            requirements
            Each State, during the 3rd and 6th month of any extended
          assistance furnished to a family under subsection (a) of this
          section, shall notify the family of the family's option for
          additional extended assistance under this subsection. Each
          such notice shall include (I) in the 3rd month notice, a
          statement of the reporting requirement under subparagraph
          (B)(i), and, in the 6th month notice, a statement of the
          reporting requirement under subparagraph (B)(ii), (II) a
          statement as to whether any premiums are required for such
          additional extended assistance, and (III) a description of
          other out-of-pocket expenses, benefits, reporting and payment
          procedures, and any pre-existing condition limitations,
          waiting periods, or other coverage limitations imposed under
          any alternative coverage options offered under paragraph
          (4)(D). The 6th month notice under this subparagraph shall
          describe the amount of any premium required of a particular
          family for each of the first 3 months of additional extended
          assistance under this subsection.
          (ii) Notice during additional extension period of reporting
            requirements and premiums
            Each State, during the 3rd month of any additional extended
          assistance furnished to a family under this subsection, shall
          notify the family of the reporting requirement under
          subparagraph (B)(ii) and a statement of the amount of any
          premium required for such extended assistance for the
          succeeding 3 months.
        (B) Reporting requirements
          (i) During initial extension period
            Each State shall require (as a condition for additional
          extended assistance under this subsection) that a family
          receiving extended assistance under subsection (a) of this
          section report to the State, not later than the 21st day of
          the 4th month in the period of extended assistance under
          subsection (a) of this section, on the family's gross monthly
          earnings and on the family's costs for such child care as is
          necessary for the employment of the caretaker relative in
          each of the first 3 months of that period. A State may permit
          such additional extended assistance under this subsection
          notwithstanding a failure to report under this clause if the
          family has established, to the satisfaction of the State,
          good cause for the failure to report on a timely basis.
          (ii) During additional extension period
            Each State shall require that a family receiving extended
          assistance under this subsection report to the State, not
          later than the 21st day of the 1st month and of the 4th month
          in the period of additional extended assistance under this
          subsection, on the family's gross monthly earnings and on the
          family's costs for such child care as is necessary for the
          employment of the caretaker relative in each of the 3
          preceding months.
          (iii) Clarification on frequency of reporting
            A State may not require that a family receiving extended
          assistance under this subsection or subsection (a) of this
          section report more frequently than as required under clause
          (i) or (ii).
      (3) Termination of extension
        (A) In general
          Subject to subparagraphs (B) and (C), extension of assistance
        during the 6-month period described in paragraph (1) to a
        family shall terminate (during the period) as follows:
          (i) No dependent child
            The extension shall terminate at the close of the first
          month in which the family ceases to include a child, whether
          or not the child is (or would if needy be) a dependent child
          under part A of subchapter IV of this chapter.
          (ii) Failure to pay any premium
            If the family fails to pay any premium for a month under
          paragraph (5) by the 21st day of the following month, the
          extension shall terminate at the close of that following
          month, unless the family has established, to the satisfaction
          of the State, good cause for the failure to pay such premium
          on a timely basis.
          (iii) Quarterly income reporting and test
            The extension under this subsection shall terminate at the
          close of the 1st or 4th month of the 6-month period if - 
              (I) the family fails to report to the State, by the 21st
            day of such month, the information required under paragraph
            (2)(B)(ii), unless the family has established, to the
            satisfaction of the State, good cause for the failure to
            report on a timely basis;
              (II) the caretaker relative had no earnings in one or
            more of the previous 3 months, unless such lack of any
            earnings was due to an involuntary loss of employment,
            illness, or other good cause, established to the
            satisfaction of the State; or
              (III) the State determines that the family's average
            gross monthly earnings (less such costs for such child care
            as is necessary for the employment of the caretaker
            relative) during the immediately preceding 3-month period
            exceed 185 percent of the official poverty line (as defined
            by the Office of Management and Budget, and revised
            annually in accordance with section 9902(2) of this title)
            applicable to a family of the size involved.

        Information described in clause (iii)(I) shall be subject to
        the restrictions on use and disclosure of information provided
        under section 602(a)(9) )2(! of this title. Instead of
        terminating a family's extension under clause (iii)(I), a
        State, at its option, may provide for suspension of the
        extension until the month after the month in which the family
        reports information required under paragraph (2)(B)(ii), but
        only if the family's extension has not otherwise been
        terminated under subclause (II) or (III) of clause (iii). The
        State shall make determinations under clause (iii)(III) for a
        family each time a report under paragraph (2)(B)(ii) for the
        family is received.

        (B) Notice before termination
          No termination of assistance shall become effective under
        subparagraph (A) until the State has provided the family with
        notice of the grounds for the termination, which notice shall
        include (in the case of termination under subparagraph
        (A)(iii)(II), relating to no continued earnings) a description
        of how the family may reestablish eligibility for medical
        assistance under the State plan. No such termination shall be
        effective earlier than 10 days after the date of mailing of
        such notice.
        (C) Continuation in certain cases until redetermination
          (i) Dependent children
            With respect to a child who would cease to receive medical
          assistance because of subparagraph (A)(i) but who may be
          eligible for assistance under the State plan because the
          child is described in clause (i) of section 1396d(a) of this
          title or clause (i)(IV), (i)(VI), (i)(VII), or (ii)(IX) of
          section 1396a(a)(10)(A) of this title, the State may not
          discontinue such assistance under such subparagraph until the
          State has determined that the child is not eligible for
          assistance under the plan.
          (ii) Medically needy
            With respect to an individual who would cease to receive
          medical assistance because of clause (ii) or (iii) of
          subparagraph (A) but who may be eligible for assistance under
          the State plan because the individual is within a category of
          person for which medical assistance under the State plan is
          available under section 1396a(a)(10)(C) of this title
          (relating to medically needy individuals), the State may not
          discontinue such assistance under such subparagraph until the
          State has determined that the individual is not eligible for
          assistance under the plan.
      (4) Coverage
        (A) In general
          During the extension period under this subsection - 
            (i) the State plan shall offer to each family medical
          assistance which (subject to subparagraphs (B) and (C)) is
          the same amount, duration, and scope as would be made
          available to the family if it were still receiving aid under
          the plan approved under part A of subchapter IV of this
          chapter; and
            (ii) the State plan may offer alternative coverage
          described in subparagraph (D).
        (B) Elimination of most non-acute care benefits
          At a State's option and notwithstanding any other provision
        of this subchapter, a State may choose not to provide medical
        assistance under this subsection with respect to any (or all)
        of the items and services described in paragraphs (4)(A), (6),
        (7), (8), (11), (13), (14), (15), (16), (18), (20), and (21)
        )3(! of section 1396d(a) of this title.

        (C) State medicaid "wrap-around" option
          At a State's option, the State may elect to apply the option
        described in subsection (a)(4)(B) of this section (relating to
        "wrap-around" coverage) for families electing medical
        assistance under this subsection in the same manner as such
        option applies to families provided extended eligibility for
        medical assistance under subsection (a) of this section.
        (D) Alternative assistance
          At a State's option, the State may offer families a choice of
        health care coverage under one or more of the following,
        instead of the medical assistance otherwise made available
        under this subsection:
          (i) Enrollment in family option of employer plan
            Enrollment of the caretaker relative and dependent children
          in a family option of the group health plan offered to the
          caretaker relative.
          (ii) Enrollment in family option of State employee plan
            Enrollment of the caretaker relative and dependent children
          in a family option within the options of the group health
          plan or plans offered by the State to State employees.
          (iii) Enrollment in State uninsured plan
            Enrollment of the caretaker relative and dependent children
          in a basic State health plan offered by the State to
          individuals in the State (or areas of the State) otherwise
          unable to obtain health insurance coverage.
          (iv) Enrollment in medicaid managed care organization
            Enrollment of the caretaker relative and dependent children
          in a medicaid managed care organization (as defined in
          section 1396b(m)(1)(A) of this title).

        If a State elects to offer an option to enroll a family under
        this subparagraph, the State shall pay any premiums and other
        costs for such enrollment imposed on the family and may pay
        deductibles and coinsurance imposed on the family. A State's
        payment of premiums for the enrollment of families under this
        subparagraph (not including any premiums otherwise payable by
        an employer and less the amount of premiums collected from such
        families under paragraph (5)) and payment of any deductibles
        and coinsurance shall be considered, for purposes of section
        1396b(a)(1) of this title, to be payments for medical
        assistance.
        (E) Prohibition on cost-sharing for maternity and preventive
          pediatric care
          (i) In general
            If a State offers any alternative option under subparagraph
          (D) for families, under each such option the State must
          assure that care described in clause (ii) is available
          without charge to the families through - 
              (I) payment of any deductibles, coinsurance, and other
            cost-sharing respecting such care, or
              (II) providing coverage under the State plan for such
            care without any cost-sharing,

          or any combination of such mechanisms.
          (ii) Care described
            The care described in this clause consists of - 
              (I) services related to pregnancy (including prenatal,
            delivery, and post partum services), and
              (II) ambulatory preventive pediatric care (including
            ambulatory early and periodic screening, diagnosis, and
            treatment services under section 1396d(a)(4)(B) of this
            title) for each child who meets the age and date of birth
            requirements to be a qualified child under section
            1396d(n)(2) of this title.
      (5) Premium
        (A) Permitted
          Notwithstanding any other provision of this subchapter
        (including section 1396o of this title), a State may impose a
        premium for a family for additional extended coverage under
        this subsection for a premium payment period (as defined in
        subparagraph (D)(i)), but only if the family's average gross
        monthly earnings (less the average monthly costs for such child
        care as is necessary for the employment of the caretaker
        relative) for the premium base period exceed 100 percent of the
        official poverty line (as defined by the Office of Management
        and Budget, and revised annually in accordance with section
        9902(2) of this title) applicable to a family of the size
        involved.
        (B) Level may vary by option offered
          The level of such premium may vary, for the same family, for
        each option offered by a State under paragraph (4)(D).
        (C) Limit on premium
          In no case may the amount of any premium under this paragraph
        for a family for a month in either of the premium payment
        periods described in subparagraph (D)(i) exceed 3 percent of
        the family's average gross monthly earnings (less the average
        monthly costs for such child care as is necessary for the
        employment of the caretaker relative) during the premium base
        period (as defined in subparagraph (D)(ii)).
        (D) Definitions
          In this paragraph:
            (i) A "premium payment period" described in this clause is
          a 3-month period beginning with the 1st or 4th month of the
          6-month additional extension period provided under this
          subsection.
            (ii) The term "premium base period" means, with respect to
          a particular premium payment period, the period of 3
          consecutive months the last of which is 4 months before the
          beginning of that premium payment period.
    (c) Applicability in States and territories
      (1) States operating under demonstration projects
        In the case of any State which is providing medical assistance
      to its residents under a waiver granted under section 1315(a) of
      this title, the Secretary shall require the State to meet the
      requirements of this section in the same manner as the State
      would be required to meet such requirement if the State had in
      effect a plan approved under this subchapter.
      (2) Inapplicability in commonwealths and territories
        The provisions of this section shall only apply to the 50
      States and the District of Columbia.
    (d) General disqualification for fraud
      (1) Ineligibility for aid
        This section shall not apply to an individual who is a member
      of a family which has received aid under part A of subchapter IV
      of this chapter if the State makes a finding that, at any time
      during the last 6 months in which the family was receiving such
      aid before otherwise being provided extended eligibility under
      this section, the individual was ineligible for such aid because
      of fraud.
      (2) General disqualifications
        For additional provisions relating to fraud and program abuse,
      see sections 1320a-7, 1320a-7a, and 1320a-7b of this title.
    (e) "Caretaker relative" defined
      In this section, the term "caretaker relative" has the meaning of
    such term as used in part A of subchapter IV of this chapter.
    (f) Sunset
      This section shall not apply with respect to families that cease
    to be eligible for aid under part A of subchapter IV of this
    chapter after September 30, 2003.



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