42 C.F.R. PART 435—ELIGIBILITY IN THE STATES, DISTRICT OF COLUMBIA, THE NORTHERN MARIANA ISLANDS, AND AMERICAN SAMOA
Title 42 - Public Health
Authority: Sec. 1102 of the Social Security Act (42 U.S.C. 1302).
Source: 43 FR 45204, Sept. 29, 1978, unless otherwise noted.
This part sets forth, for the 50 States, the District of Columbia, the Northern Mariana Islands, and American Samoa— (a) The eligibility provisions that a State plan must contain; (b) The mandatory and optional groups of individuals to whom Medicaid is provided under a State plan; (c) The eligibility requirements and procedures that the Medicaid agency must use in determining and redetermining eligibility, and requirements it may not use; (d) The availability of FFP for providing Medicaid and for administering the eligibility provisions of the plan; and (e) Other requirements concerning eligibility determinations, such as use of an institutionalized individual's income for the cost of care. [43 FR 45204, Sept. 29, 1978, as amended at 44 FR 17937, Mar. 23, 1979; 51 FR 41350, Nov. 14, 1986] (a) This part implements the following sections of the Act and public laws that mandate eligibility requirements and standards:
402(a)(22) Eligibility of deemed recipients of AFDC who receive zero payments because of recoupment of overpayments. 402(a)(37) Eligibility of individuals who lose AFDC eligibility due to increased earnings. 414(g) Eligibility of certain individuals participating in work supplementation programs. 473(b) Eligibility of children in foster care and adopted children who are deemed AFDC recipients. 1619(b) Benefits for blind individuals or those with disabling impairments whose income equals or exceeds a specific SSI limit. 1634(b) Preservation of benefit status for disabled widows and widowers who lost SSI benefits because of 1983 changes in actuarial reduction formula. 1634(d) Individuals who lose eligibility for SSI benefits due to entitlement to early widow's or widower's social security disability benefits under section 202(e) or (f) of the Act. 1902(a)(8) Opportunity to apply; assistance must be furnished promptly. 1902(a)(10) Required and optional groups. 1902(a)(12) Determination of blindness. 1902(a)(17) Standards for determining eligibility: flexibility in the application of income eligibility standards. 1902(a)(19) Safeguards for simplicity of administration and best interests of recipients. 1902(a)(34) Three-month retroactive eligibility. 1902(a) (second paragraph after (47)) Eligibility despite increased monthly insurance benefits under title II. 1902(a)(55) Mandatory use of outstation locations other than welfare offices to receive and initially process applications of certain low-income pregnant women, infants, and children under age 19. 1902(b) Prohibited conditions for eligibility: Age requirement of more that 65 years; State residence requirements excluding individuals who reside in the state; and Citizenship requirement excluding United States citizens. 1902(e) Four-month continued eligibility for families ineligible because of increased hours or income from employment. 1902(e)(2) Minimum eligibility period for recipient enrolled in an HMO. 1902(e)(3) Optional coverage of certain disabled children being cared for at home. 1902(e)(4) Eligibility of newborn children of Medicaid eligible women. 1902(e)(5) Eligibility of pregnant woman for extended coverage for specified postpartum period after pregnancy ends. 1902(f) State option to restrict Medicaid eligibility for aged, blind, or disabled individuals to those who would have been eligible under State plan in effect in January 1972. 1902(j) Medicaid program in American Samoa. 1903(f) Income limitations for medically needy and individuals covered by State supplement eligibility requirements. 1903(v) Payment for emergency services under Medicaid provided to aliens. 1905(a) (clause following (21)) Prohibitions against providing Medicaid to certain institutionalized individuals. 1905(a) (second sentence) Definition of essential person. 1905(a)(i)–(viii) List of eligible individuals. 1905(d)(2) Definition of resident of an intermediate care facility for the mentally retarded. 1905(j) Definition of State supplementary payment. 1905(k) Eligibility of essential spouses of eligible individuals. 1905(n) Definition of qualified pregnant woman and child. 1912(a) Conditions of eligibility. 1915(c) Home or community-based services. 1915(d) Home or community-based services for individuals age 65 or older. 412(e)(5) of Immigration and Nationality Act—Eligibility of certain refugees. Pub. L. 93–66, section 230 Deemed eligibility of certain essential persons. Pub. L. 93–66, section 231 Deemed eligibility of certain persons in medical institutions. Pub. L. 93–66, section 232 Deemed eligibility of certain blind and disabled medically indigent persons. Pub. L. 93–233, section 13(c) Deemed eligibility of certain individuals receiving mandatory State supplementary payments. Pub. L. 94–566, section 503 Deemed eligibility of certain individuals who would be eligible for supplemental security income benefits but for cost-of-living increases in social security benefits. Pub. L. 96–272, section 310(b)(1) Continued eligibility of certain recipients of Veterans Administration pensions. Pub. L. 99–509, section 9406 Payment for emergency medical services provided to aliens. Pub. L. 99–603, section 201 Aliens granted legalized status under section 245A of the Immigration and Nationality Act (8 U.S.C. 1255a) may under certain circumstances be eligible for Medicaid. Pub. L. 99–603, section 302 Aliens granted legalized status under section 210 of the Immigration and Nationality Act may under certain circumstances be eligible for Medicaid (8 U.S.C. 1160). Pub. L. 99–603, section 303 Aliens granted legal status under section 210A of the Immigration and Nationality Act may under certain circumstances be eligible for Medicaid (8 U.S.C. 1161). (b) This part implements the following other provisions of the Act or public laws that establish additional State plan requirements:
1618 Requirement for operation of certain State supplementation programs. Pub. L. 93–66, section 212(a) Required mandatory minimum State supplementation of SSI benefits programs. [52 FR 43071, Nov. 9, 1987; 52 FR 48438, Dec. 22, 1987, as amended at 55 FR 36819, Sept. 7, 1990; 55 FR 48607, Nov. 21, 1990; 57 FR 29155, June 30, 1992; 59 FR 48809, Sept. 23, 1994] As used in this part— AABD means aid to the aged, blind, and disabled under title XVI of the Act; AB means aid to the blind under title X of the Act; AFDC means aid to families with dependent children under title IV-A of the Act; APTD means aid to the permanently and totally disabled under title XIV of the Act; Categorically needy refers to families and children, aged, blind, or disabled individuals, and pregnant women, described under subparts B and C of this part who are eligible for Medicaid. Subpart B of this part describes the mandatory eligibility groups who, generally, are receiving or deemed to be receiving cash assistance under the Act. These mandatory groups are specified in sections 1902(a)(10)(A)(i), 1902(e), 1902(f), and 1928 of the Act. Subpart C of this part describes the optional eligibility groups of individuals who, generally, meet the categorical requirements or income or resource requirements that are the same as or less restrictive than those of the cash assistance programs and who are not receiving cash payments. These optional groups are specified in sections 1902(a)(10)(A)(ii), 1902(e), and 1902(f) of the Act. Families and children refers to eligible members of families with children who are financially eligible under AFDC or medically needy rules and who are deprived of parental support or care as defined under the AFDC program (see 45 CFR 233.90, 233.100). In addition, this group includes individuals under age 21 who are not deprived of parental support or care but are financially eligible under AFDC rules or medically needy rules (see optional coverage group, §435.222). It does not include individuals under age 21 whose eligibility for Medicaid is based on blindness or disability—for these individuals, SSI rules govern; Mandatory State supplement means a cash payment a State is required to make under section 212, Pub. L. 93–66 (July 9, 1973) to an aged, blind, or disabled individual. Its purpose is to provide an individual with the same amount of cash assistance he was receiving under OAA, AB, APTD, or AABD if his SSI payment is less than that amount; Medically needy refers to families, children, aged, blind, or disabled individuals, and pregnant women listed under subpart D of this part who are not listed in subparts B and C of this part as categorically needy but who may be eligible for Medicaid under this part because their income and resources are within limits set by the State under its Medicaid plan (including persons whose income and resources fall within these limits after their incurred expenses for medical or remedial care are deducted) (Specific financial requirements for determining eligibility of the medically needy appear in subpart I of this part.); OAA means old age assistance under title I of the Act; OASDI means old age, survivors, and disability insurance under title II of the Act; Optional State supplement means a cash payment made by a State, under section 1616 of the Act, to an aged, blind, or disabled individual; Optional targeted low-income child means a child under age 19 who meets the financial and categorical standards described below. (1) Financial need. An optional targeted low-income child: (i) Has a family income at or below 200 percent of the Federal poverty line for a family of the size involved; and (ii) Resides in a State with no Medicaid applicable income level (as defined at §457.10 of this chapter); or (iii) Resides in a State that has a Medicaid applicable income level (as defined at §457.10 of this chapter) and has family income that either: (A) Exceeds the Medicaid applicable income level for the age of such child, but not by more than 50 percentage points; or (B) Does not exceed the income level specified for such child to be eligible for medical assistance under the policies of the State plan under title XIX on June 1, 1997. (2) No other coverage and State maintenance of effort. An optional targeted low-income child is not covered under a group health plan or health insurance coverage, or would not be eligible for Medicaid under the policies of the State plan in effect on March 31, 1997; except that, for purposes of this standard— (i) A child shall not be considered to be covered by health insurance coverage based on coverage offered by the State under a program in operation prior to July 1, 1997 if that program received no Federal financial participation; (ii) A child shall not be considered to be covered under a group health plan or health insurance coverage if the child did not have reasonable geographic access to care under that coverage. (3) For purposes of this section, policies of the State plan a under title XIX plan include policies under a Statewide demonstration project under section 1115(a) of the Act other than a demonstration project that covered an expanded group of eligible children but that either— (i) Did not provide inpatient hospital coverage; or (ii) Limited eligibility to children previously enrolled in Medicaid, imposed premiums as a condition of initial or continued enrollment, and did not impose a general time limit on eligibility. SSI means supplemental security income under title XVI of the Act. SWICA means the State Wage Information Collection Agency under section 1137(a) of the Act. It is the State agency administering the State unemployment compensation law; a separate agency administering a quarterly wage reporting system; or a State agency administering an alternative system which has been determined by the Secretary of Labor, in consultation with the Secretary of Agriculture and the Secretary of Health and Human Services, to be as effective and timely in providing employment related income and eligibility data. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24883, Apr. 11, 1980; 46 FR 6909, Jan. 22, 1981; 46 FR 47984, Sept. 30, 1981; 51 FR 7211, Feb. 28, 1986; 58 FR 4925, Jan. 19, 1993; 66 FR 2666, Jan. 11, 2001] A State plan must— (a) Provide that the requirements of this part are met; and (b) Specify the groups to whom Medicaid is provided, as specified in subparts B, C, and D of this part, and the conditions of eligibility for individuals in those groups. This subpart prescribes requirements for coverage of categorically needy individuals. (a) A Medicaid agency must provide Medicaid to individuals receiving AFDC. (b) For purposes of this section, an individual is receiving AFDC if his needs are included in determining the amount of the AFDC payment. This includes an individual whose presence in the home is considered essential to the well-being of a recipient (see 45 CFR 233.20(a)(2)(vi)) and who could be a recipient under the State's AFDC plan if that plan were as broad as allowed under the Act for FFP. (a) If a family loses AFDC solely because of increased income from employment or increased hours of employment, the agency must continue to provide Medicaid for 4 months to all members of the family if— (1) The family received AFDC in any 3 or more months during the 6-month period immediately before the month in which it became ineligible for AFDC; and (2) At least one member of the family is employed throughout the 4-month period, although this need not be the same member for the whole period. (b) The 4 calendar month period begins on the date AFDC is terminated. If AFDC benefits are terminated retroactively, the 4 calendar month period also begins retroactively with the first month in which AFDC was erroneously paid. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24883, Apr. 11, 1980] The agency must provide Medicaid to: (a) Individuals denied AFDC solely because of policies requiring the deeming of income and resources of the following individuals who are not included as financially responsible relatives under section 1902(a)(17)(D) of the Act; (1) Stepparents who are not legally liable for support of stepchildren under a State law of general applicability; (2) Grandparents; (3) Legal guardians; (4) Alien sponsors who are not organizations; and (5) Siblings. (b) [Reserved] [58 FR 4926, Jan. 19, 1993, as amended at 59 FR 43052, Aug. 22, 1994] The agency must provide Medicaid to individuals who meet the following conditions: (a) In August 1972, the individual was entitled to OASDI and— (1) He was receiving AFDC; or (2) He would have been eligible for AFDC if he had applied, and the Medicaid plan covered this optional group; or (3) He would have been eligible for AFDC if he were not in a medical institution or intermediate care facility, and the Medicaid plan covered this optional group. (b) The individual would currently be eligible for AFDC except that the increase in OASDI under Pub. L. 92–336 raised his income over the limit allowed under AFDC. This includes an individual who— (1) Meets all current AFDC requirements except for the requirement to file an application; or (2) Would meet all current AFDC requirements if he were not in a medical institution or intermediate care facility, and the current Medicaid plan covers this optional group. (a) The Medicaid agency must provide Medicaid to individuals deemed to be receiving AFDC, as specified in this section. (b) The State must deem individuals to be receiving AFDC who are denied a cash payment from the title IV-A State agency solely because the amount of the AFDC payment would be less than $10. (c) The State may deem participants in a work supplementation program to be receiving AFDC under section 414(g) of the Act. This section permits States, for purposes of title XIX, to deem an individual and any child or relative of the individual (or other individual living in the same household) to be receiving AFDC, if the individual— (1) Participates in a State-operated work supplementation program under section 414 of the Act; and (2) Would be eligible for an AFDC cash payment if the individual were not participating in the work supplementation program. (d) The State must deem to be receiving AFDC those individuals who are denied AFDC payments from the title IV-A State agency solely because that agency is recovering an overpayment. (e) The State must deem to be receiving AFDC individuals described in section 473(a)(1) of the Act— (1) For whom an adoption assistance agreement is in effect under title IV-E of the Act, whether or not adoption assistance is being provided or an interlocutory or other judicial decree of adoption has been issued; or (2) For whom foster care maintenance payments are made under title IV-E of the Act. (f) The State must deem an individual to be receiving AFDC if a new collection or increased collection of child or spousal support under title IV-D of the Social Security Act results in the termination of AFDC eligibility in accordance with section 406(h) of the Social Security Act. States must continue to provide Medicaid for four consecutive calendar months, beginning with the first month of AFDC ineligibility, to each dependent child and each relative with whom such a child is living (including the eligible spouse of such relative as described in section 406(b) of the Social Security Act) who: (1) Becomes ineligible for AFDC on or after August 16, 1984; and (2) Has received AFDC for at least three of the six months immediately preceding the month in which the individual becomes ineligible for AFDC; and (3) Becomes ineligible for AFDC wholly or partly as a result of the initiation of or an increase in the amount of the child or spousal support collection under title IV-D. (g)(1) Except as provided in paragraph (g)(2) of this section, individuals who are eligible for extended Medicaid lose this coverage if they move to another State during the 4-month period. However, if they move back to and reestablish residence in the State in which they have extended coverage, they are eligible for any of the months remaining in the 4-month period in which they are residents of the State. (2) If a State has chosen in its State plan to provide Medicaid to non-residents, the State may continue to provide the 4-month extended benefits to individuals who have moved to another State. (h) For purposes of paragraph (f) of this section: (1) The new collection or increased collection of child or spousal support results in the termination of AFDC eligibility when it actively causes or contributes to the termination. This occurs when: (i) The change in support collection in and of itself is sufficient to cause ineligibility. This rule applies even if the support collection must be added to other, stable income. It also applies even if other independent factors, alone or in combination with each other, might simultaneously cause ineligibility; or (ii) The change in support contributes to ineligibility but does not by itself cause ineligibility. Ineligibility must result when the change in support is combined with other changes in income or changes in other circumstances and the other changes in income or circumstances cannot alone or in combination result in termination without the change in support. (2) In cases of increases in the amounts of both support collections and earned income, eligibility under this section does not preclude eligibility under 45 CFR 233.20(a)(14) or section 1925 of the Social Security Act (which was added by section 303(a) of the Family Support Act of 1988 (42 U.S.C. 1396r–6)). Extended periods resulting from both an increase in the amount of the support collection and from an increase in earned income must run concurrently. [46 FR 47985, Sept. 30, 1981, as amended at 52 FR 43071, Nov. 9, 1987; 55 FR 48607, Nov. 21, 1990; 59 FR 59376, Nov. 17, 1994] (a) The agency must provide Medicaid to a pregnant woman whose pregnancy has been medically verified and who— (1) Would be eligible for an AFDC cash payment (or would be eligible for an AFDC cash payment if coverage under the State's AFDC plan included an AFDC-unemployed parents program) if her child had been born and was living with her in the month of payment; (2) Is a member of a family that would be eligible for an AFDC cash payment if the State's AFDC plan included an AFDC-unemployed parents program; or (3) Meets the income and resource requirements of the State's approved AFDC plan. In determining whether the woman meets the AFDC income and resource requirements, the unborn child or children are considered members of the household, and the woman's family is treated as though deprivation exists. (b) The provisions of paragraphs (a) (1) and (2) of this section are effective October 1, 1984. The provisions of paragraph (a)(3) of this section are effective July 1, 1986. (c) The agency must provide Medicaid to children who meet all of the following criteria: (1) They are born after September 30, 1983; (2) Effective October 1, 1988, they are under age 6 (or if designated by the State, any age that exceeds age 6 but does not exceed age 8), and effective October 1, 1989, they are under age 7 (or if designated by the State, any age that exceeds age 7 but does not exceed age 8); and (3) They meet the income and resource requirements of the State's approved AFDC plan. [52 FR 43071, Nov. 9, 1987, as amended at 55 FR 48607, Nov. 21, 1990; 58 FR 48614, Sept. 17, 1993] (a) The agency must provide categorically needy Medicaid eligibility to a child born to a woman who is eligible as categorically needy and is receiving Medicaid on the date of the child's birth. The child is deemed to have applied and been found eligible for Medicaid on the date of birth and remains eligible as categorically needy for one year so long as the woman remains eligible as categorically needy and the child is a member of the woman's household. If the mother's basis of eligibility changes to medically needy, the child is eligible as medically needy under §435.301(b)(1)(iii). (b) The requirements under paragraph (a) of this section apply to children born on or after October 1, 1984. [52 FR 43071, Nov. 9, 1987] (a) Definition. A qualified family member is any member of a family, including pregnant women and children eligible for Medicaid under §435.116 of this subpart, who would be receiving AFDC cash benefits on the basis of the unemployment of the principal wage earner under section 407 of the Act had the State not chosen to place time limits on those benefits as permitted under section 407(b)(2)(B)(i) of the Act. (b) State plan requirement. The State plan must provide that the State makes Medicaid available to any individual who meets the definition of “qualified family member” as specified in paragraph (a) of this section. (c) Applicability. The provisions in this section are applicable in the 50 States and the District of Columbia from October 1, 1990, through September 30, 1998. The provisions are applicable in American Samoa from October 1, 1992, through September 30, 1998. [58 FR 48614, Sept. 17, 1993] Except as allowed under §435.121, the agency must provide Medicaid to aged, blind, and disabled individuals or couples who are receiving or are deemed to be receiving SSI. This includes individuals who are— (a) Receiving SSI pending a final determination of blindness or disability; (b) Receiving SSI under an agreement with the Social Security Administration to dispose of resources that exceed the SSI dollar limits on resources; or (c) Receiving benefits under section 1619(a) of the Act or in section 1619(b) status (blind individuals or those with disabling impairments whose income equals or exceeds a specific Supplemental Security Income limit). (Regulations at 20 CFR 416.260 through 416.269 contain requirements governing determinations of eligibility under this provision.) For purposes of this paragraph (c), this mandatory categorically needy group of individuals includes those qualified severely impaired individuals defined in section 1905(q) of the Act. [55 FR 33705, Aug. 17, 1990] (a) Basic eligibility group requirements. (1) If the agency does not provide Medicaid under §435.120 to aged, blind, and disabled individuals who are SSI recipients, the agency must provide Medicaid to aged, blind, and disabled individuals who meet eligibility requirements that are specified in this section. (2) Except to the extent provided in paragraph (a)(3) of this section, the agency may elect to apply more restrictive eligibility requirements to the aged, blind, and disabled that are more restrictive than those of the SSI program. The more restrictive requirements may be no more restrictive than those requirements contained in the State's Medicaid plan in effect on January 1, 1972. If any of the State's 1972 Medicaid plan requirements were more liberal than of the SSI program, the State must use the SSI requirement instead of the more liberal requirements, except to the extent the State elects to use more liberal criteria under §435.601. (3) The agency must not apply a more restrictive requirement under the provisions of paragraph (a)(2) of this section if: (i) The requirement conflicts with the requirements of section 1924 of the Act, which governs the eligibility and post-eligibility treatment of income and resources of institutionalized individuals with community spouses; (ii) The requirement conflicts with a more liberal requirement which the agency has elected to use under §435.601; or (iii) The more restrictive requirement conflicts with a more liberal requirement the State has elected to use under §435.234(c) in determining eligibility for State supplementary payments. (b) Mandatory coverage. If the agency chooses to apply more restrictive requirements than SSI to aged, blind, or disabled individuals, it must provide Medicaid to: (1) Individuals who meet the requirements of section 1619(b)(3) of the Act even though they may not continue to meet the requirements of this section; and (2) Qualified Medicare beneficiaries described in section 1905(p) of the Act and qualified working disabled individuals described in section 1905(s) of the Act without consideration of the more restrictive eligibility requirements specified in this section. (3) Individuals who: (i) Qualify for benefits under section 1619(a) or are in eligibility status under section 1619(b)(1) of the Act as determined by SSA; and (ii) Were eligible for Medicaid under the more restrictive criteria in the State's approved Medicaid plan in the reference month—the month immediately preceding the first month in which they became eligible under section 1619(a) or (b)(1) of the Act. “Were eligible for Medicaid” means that individuals were issued Medicaid cards by the State for the reference month. Under this provision, the reference month for determining Medicaid eligibility for all individuals under section 1619 of the Act is the month immediately preceding the first month of the most recent period of eligibility under section 1619 of the Act. (c) Group composition. The agency may apply more restrictive requirements only to the aged, to the blind, to the disabled, or to any combination of these groups. For example, the agency may apply more restrictive requirements to the aged and disabled under this provision and provide Medicaid to all blind individuals who are SSI recipients. (d) Nonfinancial conditions. The agency may apply more restrictive requirements that are nonfinancial conditions of eligibility. For example, the agency may use a more restrictive definition of disability or may limit eligibility of the disabled to individuals age 18 and older, or both. If the agency limits eligibility of disabled individuals to individuals age 18 or older, it must provide Medicaid to individuals under age 18 who receive SSI benefits and who would be eligible to receive AFDC under the State's approved plan if they did not receive SSI. If the agency imposed an age limit for disabled individuals under its 1972 approved State plan but does not use that limit, it must apply the same nonfinancial requirement to individuals under age 18 that it applies to disabled individuals age 18 and older. (e) Financial conditions. (1) The agency may apply more restrictive requirements that are financial conditions of eligibility. (2) Any income eligibility standards that the agency applies must: (i) Equal the income standard (or Federal Benefit Rate (FBR)) that would be used under SSI based on an individual's living arrangement; or (ii) Be a more restrictive standard which is no more restrictive than that under the approved State's January 1, 1972 Medicaid plan. (3) If the categorically needy income standard established under paragraph (e)(2) of this section is less than the optional categorically needy standard established under §435.230, the agency must provide Medicaid to all aged, blind, and disabled individuals who have income equal to or below the higher standard. (4) In a State that does not have a medically needy program that covers aged, blind, and disabled individuals, the agency must allow individuals to deduct from income incurred medical and remedial expenses (that is, spend down) to become eligible under this section. However, individuals with income above the categorically needy standards may only spend down to the standard selected by the State under paragraph (e)(2) of this section which applies to the individual's living arrangement. (5) In a State that elects to provide medically needy coverage to aged, blind, and disabled individuals, the agency must allow individuals to deduct from income incurred medical and remedial care expenses (spend down) to become categorically needy when they are SSI recipients (including individuals deemed to be SSI recipients under §§435.135, 435.137, and 435.138), eligible spouses of SSI recipients, State supplement recipients, and individuals who are eligible for a supplement but who do not receive supplementary payments. Such persons may only spend down to the standard selected by the State under paragraph (e)(2) of this section. Individuals who are not SSI recipients, eligible spouses of SSI recipients, State supplement recipients, or individuals who are eligible for a supplement must spend down to the State's medically needy income standards for aged, blind, and disabled individuals in order to become Medicaid eligible. (f) Deductions from income. (1) In addition to any income disregards specified in the approved State plan in accordance with §435.601(b), the agency must deduct from income: (i) SSI payments; (ii) State supplementary payments that meet the conditions specified in §§435.232 and 435.234; and (iii) Expenses incurred by the individual or financially responsible relatives for necessary medical and remedial services that are recognized under State law and are not subject to payment by a third party, unless the third party is a public program of a State or political subdivision of a State. These expenses include Medicare and other health insurance premiums, deductions and coinsurance charges, and copayments or deductibles imposed under §447.51 or §447.53 of this chapter. The agency may set reasonable limits on the amounts of incurred medical expenses that are deducted. (2) For purposes of counting income with respect to individuals who are receiving benefits under section 1619(a) f the Act or are in section 1619(b)(1) of the Act status but who do not meet the requirements of paragraph (b)(3)(ii) of this section, the agency may disregard some or all of the amount of the individual's income that is in excess of the SSI Federal benefit rate under section 1611(b) of the Act. [58 FR 4926, Jan. 19, 1993] If an agency provides Medicaid to aged, blind, or disabled individuals receiving SSI or optional State supplements, it must provide Medicaid to individuals who would be eligible for SSI or optional State supplements except for an eligibility requirement used in those programs that is specifically prohibited under title XIX. [47 FR 43648, Oct. 1, 1982; 47 FR 49847, Nov. 3, 1982] The agency must provide Medicaid to individuals receiving mandatory State supplements. (a) The agency must provide Medicaid to any person who was eligible for Medicaid in December 1973 as an essential spouse of an aged, blind, or disabled individual who was receiving cash assistance, if the conditions in paragraph (b) of this section are met. An “essential spouse” is defined in section 1905(a) of the Act as one who is living with the individual; whose needs were included in determining the amount of cash payment to the individual under OAA, AB, APTD, or AABD; and who is determined essential to the individual's well-being. (b) The agency must continue Medicaid if— (1) The aged, blind, or disabled individual continues to meet the December 1973 eligibility requirements of the applicable State cash assistance plan; and (2) The essential spouse continues to meet the conditions that were in effect in December 1973 under the applicable cash assistance plan for having his needs included in computing the payment to the aged, blind, or disabled individual. The agency must provide Medicaid to individuals who were eligible for Medicaid in December 1973, or any part of that month, as inpatients of medical institutions or residents of intermediate care facilities that were participating in the Medicaid program and who— (a) For each consecutive month after December 1973— (1) Continue to meet the requirements for Medicaid eligibility that were in effect under the State's plan in December 1973 for institutionalized individuals; and (2) Remain institutionalized; and (b) Are determined by the State or a professional standards review organization to continue to need institutional care. The agency must provide Medicaid to individuals who— (a) Meet all current requirements for Medicaid eligibility except the criteria for blindness or disability; (b) Were eligible for Medicaid in December 1973 as blind or disabled individuals, whether or not they were receiving cash assistance in December 1973; and (c) For each consecutive month after December 1973, continue to meet the criteria for blindness or disability and the other conditions of eligibility used under the Medicaid plan in December 1973. The agency must provide Medicaid to individuals who meet the following conditions: (a) In August 1972, the individual was entitled to OASDI and— (1) He was receiving OAA, AB, APTD, or AABD; or (2) He would have been eligible for one of those programs except that he had not applied, and the Medicaid plan covered this optional group; or (3) He would have been eligible for one of those programs if he were not in a medical institution or intermediate care facility, and the Medicaid plan covered this optional group. (b) The individual would currently be eligible for SSI or a State supplement except that the increase in OASDI under Pub. L. 92–336 raised his income over the limit allowed under SSI. This includes an individual who— (1) Meets all current SSI requirements except for the requirement to file an application; or (2) Would meet all current SSI requirements if he were not in a medical institution or intermediate care facility, and the State's Medicaid plan covers this optional group. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24883, Apr. 11, 1980] (a) If an agency provides Medicaid to aged, blind, or disabled individuals receiving SSI or State supplements, it must provide Medicaid to individuals who— (1) Are receiving OASDI; (2) Were eligible for and receiving SSI or State supplements but became ineligible for those payments after April 1977; and (3) Would still be eligible for SSI or State supplements if the amount of OASDI cost-of-living increases paid under section 215(i) of the Act, after the last month after April 1977 for which those individuals were both eligible for and received SSI or a State supplement and were entitled to OASDI, were deducted from current OASDI benefits. (b) Cost-of-living increases include the increases received by the individual or his or her financially responsible spouse or other family member (e.g., a parent). (c) If the agency adopts more restrictive eligibility requirements than those under SSI, it must provide Medicaid to individuals specified in paragraph (a) of this section on the same basis as Medicaid is provided to individuals continuing to receive SSI or State supplements. If the individual incurs enough medical expenses to reduce his or her income to the financial eligibility standard for the categorically needy, the agency must cover that individual as categorically needy. In determining the amount of his or her income, the agency may deduct the cost-of-living increases paid under section 215(i) after the last month after April 1977 for which that individual was both eligible for and received SSI or a State supplement and was entitled to OASDI, up to the amount that made him or her ineligible for SSI. [51 FR 12330, Apr. 10, 1986] An agency must— (a) Provide a one-time notice of potential Medicaid eligibility under §435.135 to all individuals who meet the requirements of §435.135 (a) or (c) who were not receiving Medicaid as of March 9, 1984; and (b) Establish an annual review system to identify individuals who meet the requirements of §435.135 (a) or (c) and who lose categorically needy eligibility for Medicaid because of a loss of SSI. States without medically needy programs must send notices of potential eligibility for Medicaid to these individuals for 3 consecutive years following their identification through the annual review system. [51 FR 12330, Apr. 10, 1986] (a) If the agency provides Medicaid to aged, blind, or disabled individuals receiving SSI or State supplements, the agency much provide Medicaid to disabled widows and widowers who— (1) Became ineligible for SSI or a mandatory or optional State supplement as a result of the elimination of the additional reduction factor for disabled widows and widowers under age 60 required by section 134 of Pub. L. 98–21, and for purposes of title XIX, are deemed to be title XVI payment recipients under section 1634(b) of the Social Security Act; and (2) Meet the conditions of paragraphs (b) and (e) of this section. (b) The individuals must meet the following conditions: (1) They were entitled to monthly OASDI benefits under title II of the Act for December 1983: (2) They were entitled to and received widow's or widower's disability benefits under section 202(e) or (f) of the Act for January 1984; (3) They became ineligible for SSI or a mandatory or optional State supplement in the first month in which the increase under Pub. L. 98–21 was paid (and in which a retroactive payment for that increase for prior months was not made); (4) They have been continously entitled to widow's or widower's disability benefits under section 202(e) or (f) from the first month that the increase under Pub. L. 98–21 was received; and (5) They would be eligible for SSI benefits or a mandatory or optional State supplement if the amount of the increase under Pub. L. 98–21 and subsequent cost-of-living adjustments in widow's or widower's benefits under section 215(i) of the Act were deducted from their income. (c) If the agency adopts more restrictive requirements than those under SSI, it must provide Medicaid to individuals specified in paragraph (a) of this section on the same basis as Medicaid is provided to individuals continuing to receive SSI or a mandatory or optional State supplement. The State must consider the individuals specified in paragraph (a) of this section to have no more income than the SSI Federal benefit rate if the individual was eligible for SSI in the month prior to the first month in which the increase under Public Law 98–21 was paid (and in which retroactive payments for that increase for prior months was not being made), and the individual would be eligible for SSI except for the amount of the increase under Public Law 98–21 and subsequent cost-of-living adjustments in his or her widow's or widower's benefits under section 215(i) of the Act. The State must consider individuals who qualify under paragraph (a) of this section on the basis of loss of a mandatory or optional State supplementary payment, rather than the loss of SSI, to have no more income than the relevant SSP rate. If the State's income eligibility level is lower than the SSP or SSI Federal benefit rates, individuals qualifying under paragraph (a) of this section who are deemed to have income at either the SSP rate or the SSI Federal benefit rate may further reduce their countable income by incurring medical expenses in the amount by which their income exceeds the State's income eligibility standard. When the individual has reduced his or her income by this amount, he or she will be eligible for Medicaid as categorically needy. (d) The agency must notify each individual who may be eligible for Medicaid under this section of his or her potential eligibility, in accordance with instructions issued by the Secretary. (e)(1) Except as provided in paragraph (e)(2) of this section, the provisions of this section apply only to those individuals who filed a written application for Medicaid on or before June 30, 1988, to obtain protected Medicaid coverage. (2) Individuals who may be eligible under this section residing in States that use a more restrictive income standard than that of the SSI program, under section 1902(f) of the Act, have up to six months after the State sends notice pursuant to the District Court's order in Darling v. Bowen (685 F. Supp. 1125 (W.D.Mo. 1988) to file a written application to obtain protected Medicaid coverage. [55 FR 48607, Nov. 21, 1990] (a) If the agency provides Medicaid to aged, blind, or disabled individuals receiving SSI or State supplements, the agency must provide Medicaid to disabled widows and widowers who— (1) Are at least age 60; (2) Are not entitled to hospital insurance benefits under Medicare Part A; and (3) Become ineligible for SSI or a State supplement because of mandatory application (under section 1611(e)(2)) for and receipt of widow's or widower's social security disability benefits under section 202(e) or (f) (or any other provision of section 202 if they are also eligible for benefits under subsections (e) or (f)) of the Act. For purposes of title XIX, individuals who meet these requirements are deemed to be title XVI payment recipients under section 1634(d) of the Act. (b) If the agency adopts more restrictive eligibility requirements than those under SSI, it must provide Medicaid to individuals specified in paragraph (a) of this section on the same basis as Medicaid is provided to individuals continuing to receive SSI or a mandatory or optional State supplement. If the individual incurs enough medical expenses to reduce his or her income to the financial eligibility standard for the categorically needy under the State's more restrictive eligibility criteria, the agency must cover the individual as categorically needy. In determining the amount of his or her income, the agency may deduct all, part, or none of the amount of the social security disability benefits that made him or her ineligible for SSI or a State supplement, up to the amount that made him or her ineligible for SSI. (c) Individuals who may be eligible under this section must file a written application for Medicaid. Medicaid coverage may begin no earlier than July 1, 1988. (d) The agency must determine whether individuals may be eligible for Medicaid under this section. [55 FR 48608, Nov. 21, 1990] The agency must provide services necessary for the treatment of an emergency medical condition, as defined in §440.255(c) of this chapter, to those aliens described in §435.406(c) of this subpart. [55 FR 36819, Sept. 7, 1990] The agency must provide Medicaid to children for whom adoption assistance or foster care maintenance payments are made under title IV-E of the Act. [47 FR 28665, July 1, 1982. Redesignated at 55 FR 48607, Nov. 21, 1990. Redesignated at 58 FR 48614, Sept. 17, 1993] (a) The agency must provide categorically needy Medicaid eligibility for an extended period following termination of pregnancy to women who, while pregnant, applied for, were eligible for, and received Medicaid services on the day that their pregnancy ends. This period extends from the last day of pregnancy through the end of the month in which a 60-day period, beginning on the last day of the pregnancy, ends. Eligibility must be provided regardless of changes in the woman's financial circumstances that may occur within this extended period. These women are eligible for the extended period for all services under the plan that are pregnancy-related (as defined in §440.210(c)(1) of this subchapter). (b) The provisions of paragraph (a) of this section apply to Medicaid furnished on or after April 7, 1986. [55 FR 48608, Nov. 21, 1990] This subpart specifies options for coverage of individuals as categorically needy. (a) The agency may choose to cover as optional categorically needy any group or groups of the following individuals who are not receiving cash assistance and who meet the appropriate eligibility criteria for groups specified in the separate sections of this subpart: (1) Aged individuals (65 years of age of older); (2) Blind individuals (as defined in §435.530); (3) Disabled individuals (as defined in §435.541); (4) Individuals under age 21 (or, at State option, under age 20, 19, or 18) or reasonable classifications of these individuals; (5) Specified relatives under section 406(b)(1) of the Act who have in their care an individual who is determined to be dependent (or would, if needy, be dependent) as specified in §435.510; and (6) Pregnant women. (b) If the agency provides Medicaid to any individual in an optional group specified in paragraph (a) of this section, the agency must provide Medicaid to all individuals who apply and are found eligible to be members of that group. (c) States that elect to use more restrictive eligibility requirements for Medicaid than the SSI requirements for any group or groups of aged, blind, and disabled individuals under §435.121 must apply the specific requirements of §435.230 in establishing eligibility of these groups of individuals as optional categorically needy. [58 FR 4927, Jan. 19, 1993] The agency may provide Medicaid to any group or groups of individuals specified in §435.201 (a)(1) through (a)(3) and (a)(5) and (a)(6) who are not mandatory categorically needy, who meet the income and resource requirements of the appropriate cash assistance program for their status (that is, the State's approved AFDC plan or SSI, or optional State supplements in States that provide Medicaid to optional State supplement recipients). [58 FR 4927, Jan. 19, 1993] The agency may provide Medicaid to any group or groups of individuals specified in §435.201(a) who are in title XIX reimbursable medical institutions and who: (a) Are ineligible for the cash assistance program appropriate for their status (that is, AFDC or SSI, or optional State supplements in States that provide Medicaid to optional State supplement recipients) because of lower income standards used under the program to determine eligibility for institutionalized individuals; but (b) Would be eligible for aid or assistance under the State's approved AFDC plan, SSI, or an optional State supplement as specified in §§435.232 and 435.234 if they were not institutionalized. [58 FR 4927, Jan. 19, 1993] The State agency may provide that a recipient who is enrolled in an MCO or PCCM and who becomes ineligible for Medicaid is considered to continue to be eligible— (a) For a period specified by the agency, ending no later than 6 months from the date of enrollment; and (b) Except for family planning services (which the recipient may obtain from any qualified provider) only for services furnished to him or her as an MCO enrollee. [56 FR 8849, Mar. 1, 1991, as amended at 67 FR 41095, June 14, 2002] The agency may provide Medicaid to any group or groups of individuals in the community who meet the following requirements: (a) The group would be eligible for Medicaid if institutionalized. (b) In the absence of home and community-based services under a waiver granted under part 441— (1) Subpart G of this subchapter, the group would otherwise require the level of care furnished in a hospital, NF, or an ICF/MR; or (2) Subpart H of this subchapter, the group would otherwise require the level of care furnished in an NF and are age 65 or older. (c) The group receives the waivered services. [57 FR 29155, June 30, 1992] (a) The agency may provide Medicaid to any group or groups of individuals specified under §435.201 (a)(4), (a)(5), and (a)(6) who would meet the income and resource requirements under the State's approved AFDC plan if their work-related child care costs were paid from their earnings rather than by a State agency as a service expenditure. (b) The agency may use this option only if the State's AFDC plan deducts work-related child care costs from income to determine the amount of AFDC. [43 FR 45204, Sept. 29, 1978, as amended at 58 FR 4927, Jan. 19, 1993] (a) The agency may provide Medicaid to individuals under age 21 (or, at State option, under age 20, 19, or 18); or reasonable categories of these individuals as specified in paragraph (b) of this section, who are not receiving cash assistance under any program but who meet the income and resource requirements of the State's approved AFDC plan. (b) The agency may cover all individuals described in paragraph (a) of this section or reasonable classifications of those individuals. Examples of reasonable classifications are as follows: (1) Individuals in foster homes or private institutions for whom a public agency is assuming a full or partial financial responsibility. If the agency covers these individuals, it may also provide Medicaid to individuals of the same age placed in foster homes or private institutions by private nonprofit agencies. (2) Individuals in adoptions subsidized in full or in part by a public agency. (3) Individuals in nursing facilities when nursing facility services are provided under the plan to individuals within the age group selected under this provision. If the agency covers these individuals, it may also provide Medicaid to individuals in intermediate care facilities for the mentally retarded. (4) Individuals under age 21 receiving active treatment as inpatients in pyschiatric facilities or programs, if inpatient psychiatric services for individuals under 21 are provided under the plan. [46 FR 47985, Sept. 30, 1981; 46 FR 54743, Nov. 4, 1981, as amended at 58 FR 4927, Jan. 19, 1993] (a) The agency may provide Medicaid to any group or groups of individuals specified under §435.210 (a)(4), (a)(5), and (a)(6) who: (1) Would be eligible for AFDC if the State's AFDC plan included individuals whose coverage under title IV-A is optional (for example, Medicaid may be provided to members of families with an unemployed parent even though AFDC is not available to them under the State's AFDC plan); or (2) Would be eligible for AFDC if the State's AFDC plan did not contain eligibility requirements more restrictive than, or in addition to, those required under title IV-A. (b) The agency may cover any AFDC optional group without covering all such groups. [46 FR 47985, Sept. 30, 1981, as amended at 58 FR 4927, Jan. 19, 1993] (a) The agency may provide Medicaid to children 18 years of age or younger who qualify under section 1614(a) of the Act, who would be eligible for Medicaid if they were in a medical institution, and who are receiving, while living at home, medical care that would be provided in a medical institution. (b) If the agency elects the option provided by paragraph (a) of this section, it must determine, in each case, that the following conditions are met: (1) The child requires the level of care provided in a hospital, SNF, or ICF. (2) It is appropriate to provide that level of care outside such an institution. (3) The estimated Medicaid cost of care outside an institution is no higher than the estimated Medicaid cost of appropriate institutional care. (c) The agency must specify in its State plan the method by which it determines the cost-effectiveness of caring for disabled children at home. [55 FR 48608, Nov. 21, 1990] (a) The agency may provide Medicaid to individuals under the age of 21 (or, at State option, age 20, 19, or 18)— (1) For whom an adoption agreement (other than an agreement under title IV-E) between the State and the adoptive parent(s) is in effect; (2) Who, the State agency responsible for adoption assistance, has determined cannot be placed with adoptive parents without Medicaid because the child has special needs for medical or rehabilitative care; and (3) Who meet either of the following: (i) Were eligible for Medicaid under the State plan before the adoption agreement was entered into; or (ii) Would have been eligible for Medicaid before the adoption agreement was entered into, if the eligibility standards and methodologies of the title IV-E foster care program were used without employing the threshold title IV-A eligibility determination. (b) For adoption assistance agreements entered into before April 7, 1986— (1) The agency must deem the requirements of paragraphs (a)(1) and (2) of this section to be met if the State adoption assistance agency determines that— (i) At the time of the adoption placement, the child had special needs for medical or rehabilitative care that made the child difficult to place; and (ii) There is in effect an adoption assistance agreement between the State and the adoptive parent(s). (2) The agency must deem the requirements of paragraph (a)(3) of this section to be met if the child was found by the State to be eligible for Medicaid before the adoption assistance agreement was entered into. [55 FR 48608, Nov. 21, 1990] The agency may provide Medicaid to— (a) All individuals under age 19 who are optional targeted low-income children as defined in §435.4; or (b) Reasonable categories of these individuals. [66 FR 2667, Jan. 11, 2001] (a) Basic optional coverage rule. If the agency elects the option under §435.121 to provide mandatory eligibility for aged, blind, and disabled SSI recipients using more restrictive requirements than those used under SSI, the agency may provide eligibility as optional categorically needy to additional individuals who meet the requirements of this section. (b) Group composition. Subject to the conditions specified in paragraphs (d) and (e) of this section, the agency may provide Medicaid to individuals who: (1) Meet the nonfinancial criteria that the State has elected to apply under §435.121; (2) Meet the resource requirements that the State has elected to apply under §435.121; and (3) Meet the income eligibility standards specified in paragraph (c) of this section. (c) Criteria for income standards. The agency may provide Medicaid to the following individuals who meet the requirements of paragraphs (b)(1) and (b)(2) of this section: (1) Individuals who are financially eligible for but not receiving SSI benefits and who, before deduction of incurred medical and remedial expenses, meet the State's more restrictive eligibility requirements described in §435.121; (2) Individuals who meet the income standards of the following eligibility groups: (i) Individuals who would be eligible for cash assistance except for institutional status described in §435.211; (ii) Individuals who are enrolled in an HMO or other entity and who are deemed to continue to be Medicaid eligible for a period specified by the agency up to 6 months from the date of enrollment and who became ineligible during the specified enrollment period, as described in §435.212; (iii) Individuals receiving home and community-based waiver services described in §435.217; (iv) Individuals receiving only optional State supplements described in §435.234; (v) Institutionalized individuals with income below a special income level described in §435.236; (vi) Aged and disabled individuals who have income below 100 percent of the Federal poverty level described in section 1905(m) of the Act. (3) Individuals who qualify for special status under §§435.135 and 435.138, and with respect to whom the State elects to disregard some or the maximum amount of title II payments permitted to be disregarded under those sections. (d) Use of more liberal methods. The agency may elect to apply more liberal methods of counting income and resources that are approved for this eligibility group under the provisions of §435.601. [58 FR 4928, Jan. 19, 1993] (a) If the agency provides Medicaid to individuals receiving SSI under §435.120, it may provide Medicaid, in one or more of the following classifications, to individuals who receive only an optional State supplement that meets the conditions specified in paragraph (b) of this section and who would be eligible for SSI except for the level of their income. (1) All aged individuals. (2) All blind individuals. (3) All disabled individuals. (4) Only aged individuals in domiciliary facilities or other group living arrangements as defined under SSI. (5) Only blind individuals in domiciliary facilities or other group living arrangements as defined under SSI. (6) Only disabled individuals in domiciliary facilities or other group living arrangements as defined under SSI. (7) Individuals receiving a federally administered optional State supplement that meets the conditions specified in this section. (8) Individuals in additional classifications specified by the Secretary for federally administered supplementary payments under 20 CFR 416.2020(d). (9) Reasonable groups of individuals, as specified by the State, receiving State-administered supplementary payments. (b) Payments under the optional supplement program must be— (1) Based on need and paid in cash on a regular basis; (2) Equal to the difference between the individual's countable income and the income standard used to determine eligibility for supplement. Countable income is income remaining after deductions required under SSI or, at State option, more liberal deductions are made (see §435.1006 for limitations on FFP in Medicaid expenditures for individuals receiving optional State supplements); and (3) Available to all individuals in each classification in paragraph (a) of this section and available on a statewide basis. However, the plan may provide for variations in the income standard by political subdivision according to cost-of-living differences. [43 FR 45204, Sept. 29, 1978. Redesignated and amended at 58 FR 4928, Jan. 19, 1993] (a) In States using more restrictive eligibility requirements than SSI or in States that use SSI criteria but do not have section 1616 or 1634 agreements with the Social Security Administration for eligibility determinations, the agency may provide Medicaid to individuals specified in paragraph (b) of this section who receive only a State supplement if the State supplement meets the conditions specified in paragraph (c) of this section. (b) The agency may provide Medicaid to all individuals receiving only State supplements if, except for their income, the individuals meet the more restrictive eligibility requirements under §435.121 or SSI criteria, or to one or more of the following classifications of individuals who meet these criteria: (1) All aged individuals. (2) All blind individuals. (3) All disabled individuals. (4) Only aged individuals in domiciliary facilities or other group living arrangements as defined under SSI. (5) Only blind individuals in domiciliary facilities or other group living arrangements as defined under SSI. (6) Only disabled individuals in domiciliary facilities or other group living arrangements as defined under SSI. (7) Individuals receiving a Federally-administered optional State supplement that meets the conditions specified in this section. (8) Individuals in additional classifications specified by the Secretary. (9) Reasonable groups of individuals, as specified by the State, receiving State-administered supplementary payments. (c) Payments under the optional supplement program must be: (1) Based on need and paid in cash on a regular basis; (2) Equal to the difference between the individual's countable income and the income standard used to determine eligibility for supplements. Countable income is income remaining after deductions are applied. The income deductions may be more restrictive than required under SSI (see §435.1006 for limitations on FFP in Medicaid expenditures for individuals receiving optional State supplements); and (3) Available to all individuals in each classification in paragraph (b) of this section and available on a statewide basis. However, the plan may provide for variations in the income standard by political subdivision according to cost-of-living differences. [58 FR 4928, Jan. 19, 1993] (a) If the agency provides Medicaid under §435.211 to individuals in institutions who would be eligible for AFDC, SSI, or State supplements except for their institutional status, it may also cover aged, blind, and disabled individuals in institutions who— (1) Because of their income, would not be eligible for SSI or State supplements if they were not institutionalized; but (2) Have income below a level specified in the plan under §435.722. (See §435.1005 for limitations on FFP in Medicaid expenditures for individuals specified in this section.) (b) The agency may cover individuals under this section whether or not the State pays optional supplements. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24884, Apr. 11, 1980. Redesignated at 58 FR 4928, Jan. 19, 1993] This subpart specifies the option for coverage of medically needy individuals. (a) An agency may provide Medicaid to individuals specified in this subpart who: (1) Either: (i) Have income that meets the applicable standards in §§435.811 and 435.814; or (ii) If their income is more than allowed under the standard, have incurred medical expenses at least equal to the difference between their income and the applicable income standard; and (2) Have resources that meet the applicable standards in §§435.840 and 435.843. (b) If the agency chooses this option, the following provisions apply: (1) The agency must provide Medicaid to the following individuals who meet the requirements of paragraph (a) of this section: (i) All pregnant women during the course of their pregnancy who, except for income and resources, would be eligible for Medicaid as mandatory or optional categorically needy under subparts B or C of this part; (ii) All individuals under 18 years of age who, except for income and resources, would be eligible for Medicaid as mandatory categorically needy under subpart B of this part; (iii) All newborn children born on or after October 1, 1984, to a woman who is eligible as medically needy and is receiving Medicaid on the date of the child's birth. The child is deemed to have applied and been found eligible for Medicaid on the date of birth and remains eligible as medically needy for one year so long as the woman remains eligible and the child is a member of the woman's household. If the woman's basis of eligibility changes to categorically needy, the child is eligible as categorically needy under §435.117. The woman is considered to remain eligible if she meets the spend-down requirements in any consecutive budget period following the birth of the child. (iv) Women who, while pregnant, applied for, were eligible for, and received Medicaid services as medically needy on the day that their pregnancy ends. The agency must provide medically needy eligibility to these women for an extended period following termination of pregnancy. This period extends from the last day of the pregnancy through the end of the month in which a 60-day period, beginning on the last day of pregnancy, ends. Eligibility must be provided, regardless of changes in the woman's financial circumstances that may occur within this extended period. These women are eligible for the extended period for all services under the plan that are pregnancy-related (as defined in §440.210(c)(1) of this subchapter). (2) The agency may provide Medicaid to any of the following groups of individuals; (i) Individuals under age 21 (§435.308). (ii) Specified relatives (§435.310). (iii) Aged (§435.330.320 and 435.330). (iv) Blind (§§435.322, 435.330 and 435.340). (v) Disabled (§§435.324, 435.330, and 435.340). (3) If the agency provides Medicaid to any individual in a group specified in paragraph (b)(2) of this section, the agency must provide Medicaid to all individuals eligible to be members of that group. [46 FR 47986, Sept. 30, 1981, as amended at 52 FR 43072, Nov. 9, 1987; 52 FR 48438, Dec. 22, 1987; 55 FR 48609, Nov. 21, 1990; 58 FR 4929, Jan. 19, 1993] (a) If the agency provides Medicaid to the medically needy, it may provide Medicaid to individuals under age 21 (or, at State option, under age 20, 19, or 18), as specified in paragraph (b) of this section: (1) Who would not be covered under the mandatory medically needy group of individuals under 18 under §435.301(b)(1)(ii); and (2) Who meet the income and resource requirements of subpart I of this part. (b) The agency may cover all individuals described in paragraph (a) of this section or reasonable classifications of those individuals. Examples of reasonable classifications are as follows: (1) Individuals in foster homes or private institutions for whom a public agency is assuming a full or partial financial responsibility. If the agency covers these individuals, it may also provide Medicaid to individuals placed in foster homes or private institutions by private nonprofit agencies. (2) Individuals in adoptions subsidized in full or in part by a public agency. (3) Individuals in nursing facilities when nursing facility services are provided under the plan to individuals within the age group selected under this provision. When the agency covers such individuals, it may also provide Medicaid to individuals in intermediate care facilities for the mentally retarded. (4) Individuals receiving active treatment as inpatients in psychiatric facilities or programs, if inpatient psychiatric services for individuals under 21 are provided under the plan. [46 FR 47986, Sept. 30, 1981, as amended at 58 FR 4929, Jan. 19, 1993] (a) If the agency provides for the medically needy, it may provide Medicaid to specified relatives, as defined in paragraph (b) of this section, who meet the income and resource requirements of subpart I of this part. (b) Specified relatives means individuals who: (1) Are listed under section 406(b)(1) of the Act and 45 CFR 233.90(c)(1)(v)(A); and (2) Have in their care an individual who is determined to be (or would, if needy, be) dependent, as specified in §435.510. [58 FR 4929, Jan. 19, 1993] If the agency provides Medicaid to individuals receiving SSI and elects to cover the medically needy, it may provide Medicaid to individuals who— (a) Are 65 years of age and older, as specified in §435.520; and (b) Meet the income and resource requirements of subpart I of this part. [46 FR 47986, Sept. 30, 1981] If the agency provides Medicaid to individuals receiving SSI and elects to cover the medically needy, it may provide Medicaid to blind individuals who meet— (a) The requirements for blindness, as specified in §§435.530 and 435.531; and (b) The income and resource requirements of subpart I of this part. [46 FR 47986, Sept. 30, 1981] If the agency provides Medicaid to individuals receiving SSI and elects to cover the medically needy, it may provide Medicaid to disabled individuals who meet— (a) The requirements for disability, as specified in §§435.540 and 435.541; and (b) The income and resource requirements of Subpart I of this part. [46 FR 47986, Sept. 30, 1981; 46 FR 54743, Nov. 11, 1981] If the agency provides Medicaid to the categorically needy under §435.212, it may provide it under the same rules to medically needy recipients who are enrolled in MCOs or PCCMs. [67 FR 41095, June 14, 2002] (a) If an agency provides Medicaid as categorically needy only to those aged, blind, or disabled individuals who meet more restrictive requirements than used under SSI and elects to cover the medically needy, it may provide Medicaid as medically needy to those aged, blind, or disabled individuals who: (1) Do not qualify for Medicaid as categorically needy under §435.121 or §435.230; and (2) If applying as blind or disabled, meet the definition of blindness or disability established under §435.121. (b) Except as specified in paragraph (c) of this section, the agency must apply to individuals covered under the option of this section the same financial and nonfinancial requirements that are applied to individuals covered as categorically needy under §§435.121 and 435.230. (c) In determining the financial eligibility of individuals who are considered as medically needy under this section, the agency must apply the financial eligibility requirements of subparts G and I of this part. [58 FR 4929, Jan. 19, 1993] If an agency provides Medicaid to the medically needy, it must cover individuals who— (a) Where eligible as medically needy under the Medicaid plan in December 1973 on the basis of the blindness or disability criteria of the AB, APTD, or AABD plan; (b) For each consecutive month after December 1973, continue to meet— (1) Those blindness or disability criteria; and (2) The eligibility requirements for the medically needy under the December 1973 Medicaid plan; and (c) Meet the current requirements for eligibility as medically needy under the Medicaid plan except for blindness or disability criteria. [46 FR 47987, Sept. 30, 1981] If an agency provides Medicaid to the medically needy, it must provide the services necessary for the treatment of an emergency medical condition, as defined in §440.255(c) of this chapter, to those aliens described in §435.406(c) of this subpart. [55 FR 36819, Sept. 7, 1990] This subpart prescribes general requirements for determining the eligibility of both categorically and medically needy individuals specified in subparts B, C, and D of this part. (a) A Medicaid agency may not impose any eligibility requirement that is prohibited under Title XIX of the Act. (b) The agency must base any optional group covered under subparts B and C of this part on reasonable classifications that do not result in arbitrary or inequitable treatment of individuals and groups and that are consistent with the objectives of Title XIX. (c) The agency must not use requirements for determining eligibility for optional coverage groups that are— (1) For families and children, more restrictive than those used under the State's AFDC plan; and (2) For aged, blind, and disabled individuals, more restrictive than those used under SSI, except for individuals receiving an optional State supplement as specified in §435.230 or individuals in categories specified by the agency under §435.121. (a) Requirement. The agency must provide Medicaid to eligible residents of the State, including residents who are absent from the State. The conditions under which payment for services is provided to out-of-State residents are set forth in §431.52 of this chapter. (b) Definition. For purposes of this section—Institution has the same meaning as Institution and Medical institution, as defined in §435.1010. For purposes of State placement, the term also includes foster care homes, licensed as set forth in 45 CFR 1355.20, and providing food, shelter and supportive services to one or more persons unrelated to the proprietor. (c) Incapability of indicating intent. For purposes of this section, an individual is considered incapable of indicating intent if the individual— (1) Has an I.Q. of 49 or less or has a mental age of 7 or less, based on tests acceptable to the mental retardation agency in the State: (2) Is judged legally incompetent; or (3) Is found incapable of indicating intent based on medical documentation obtained from a physician, psychologist, or other person licensed by the State in the field of mental retardation. (d) Who is a State resident. A resident of a State is any individual who: (1) Meets the conditions in paragraphs (e) through (i) of this section; or (2) Meets the criteria specified in an interstate agreement under paragraph (k) of this section. (e) Placement by a State in an out-of-State institution—(1) General rule. Any agency of the State, including an entity recognized under State law as being under contract with the State for such purposes, that arranges for an individual to be placed in an institution located in another State, is recognized as acting on behalf of the State in making a placement. The State arranging or actually making the placement is considered as the individual's State of residence. (2) Any action beyond providing information to the individual and the individual's family would constitute arranging or making a State placement. However, the following actions do not constitute State placement: (i) Providing basic information to individuals about another State's Medicaid program, and information about the availability of health care services and facilities in another State. (ii) Assisting an individual in locating an institution in another State, provided the individual is capable of indicating intent and independently decides to move. (3) When a competent individual leaves the facility in which the individual is placed by a State, that individual's State of residence for Medicaid purposes is the State where the individual is physically located. (4) Where a placement is initiated by a State because the State lacks a sufficient number of appropriate facilities to provide services to its residents, the State making the placement is the individual's State of residence for Medicaid purposes. (f) Individuals receiving a State supplementary payment (SSP). For individuals of any age who are receiving an SSP, the State of residence is the State paying the SSP. (g) Individuals receiving Title IV-E payments. For individuals of any age who are receiving Federal payments for foster care and adoption assistance under title IV-E of the Social Security Act, the State of residence is the State where the child lives. (h) Individuals under Age 21. (1) For any individual who is emancipated from his or her parents or who is married and capable of indicating intent, the State of residence is the State where the individual is living with the intention to remain there permanently or for an indefinite period. (2) For any individual not residing in an institution as defined in paragraph (b) whose Medicaid eligibility is based on blindness or disability, the State of residence is the State in which the individual is living. (3) For any other non-institutionalized individual not subject to paragraph (h)(1) or (h)(2) of this section, the State of residence is determined in accordance with 45 CFR 233.40, the rules governing residence under the AFDC program. (4) For any institutionalized individual who is neither married nor emancipated, the State of residence is— (i) The parent's or legal guardian's State of residence at the time of placement (if a legal guardian has been appointed and parental rights are terminated, the State of residence of the guardian is used instead of the parent's); or (ii) The current State of residence of the parent or legal guardian who files the application if the individual is institutionalized in that State (if a legal guardian has been appointed and parental rights are terminated, the State or residence of the guardian is used instead of the parent's). (iii) The State of residence of the individual or party who files an application is used if the individual has been abandoned by his or her parent(s), does not have a legal guardian and is institutionalized in that State. (i) Individuals Age 21 and over. (1) For any individual not residing in an institution as defined in paragraph (b), the State of residence is the State where the individual is— (i) Living with the intention to remain there permanently or for an indefinite period (or if incapable of stating intent, where the individual is living); or (ii) Living and which the individual entered with a job commitment or seeking employment (whether or not currently employed). (2) For any institutionalized individual who became incapable of indicating intent before age 21, the State of residence is— (i) That of the parent applying for Medicaid on the individual's behalf, if the parents reside in separate States (if a legal guardian has been appointed and parental rights are terminated, the State of residence of the guardian is used instead of the parent's); (ii) The parent's or legal guardian's State of residence at the time of placement (if a legal guardian has been appointed and parental rights are terminated, the State of residence of the guardian is used instead of the parent's); or (iii) The current State of residence of the parent or legal guardian who files the application if the individual is institutionalized in that State (if a legal guardian has been appointed and parental rights are terminated, the State of residence of the guardian is used instead of the parent's). (iv) The State of residence of the individual or party who files an application is used if the individual has been abandoned by his or her parent(s), does not have a legal guardian and is institutionalized in that State. (3) For any institutionalized individual who became incapable of indicating intent at or after age 21, the State of residence is the State in which the individual is physically present, except where another State makes a placement. (4) For any other institutionalized individual, the State of residence is the State where the individual is living with the intention to remain there permanently or for an indefinite period. (j) Specific prohibitions. (1) The agency may not deny Medicaid eligibility because an individual has not resided in the State for a specified period. (2) The agency may not deny Medicaid eligibility to an individual in an institution, who satisfies the residency rules set forth in this section, on the grounds that the individual did not establish residence in the State before entering the institution. (3) The agency may not deny or terminate a resident's Medicaid eligibility because of that person's temporary absence from the State if the person intends to return when the purpose of the absence has been accomplished, unless another State has determined that the person is a resident there for purposes of Medicaid. (k) Interstate agreements. A State may have a written agreement with another State setting forth rules and procedures resolving cases of disputed residency. These agreements may establish criteria other than those specified in paragraphs (c) through (i) of this section, but must not include criteria that result in loss of residency in both States or that are prohibited by paragraph (j) of this section. The agreements must contain a procedure for providing Medicaid to individuals pending resolution of the case. States may use interstate agreeements for purposes other than cases of disputed residency to facilitate administration of the program, and to facilitate the placement and adoption of title IV-E individuals when the child and his or her adoptive parent(s) move into another State. (l) Continued Medicaid for institutionalized recipients. If an agency is providing Medicaid to an institutionalized recipient who, as a result of this section, would be considered a resident of a different State— (1) The agency must continue to provide Medicaid to that recipient from June 24, 1983 until July 5, 1984, unless it makes arrangements with another State of residence to provide Medicaid at an earlier date: and (2) Those arrangements must not include provisions prohibited by paragraph (h) of this section. (m) Cases of disputed residency. Where two or more States cannot resolve which State is the State of residence, the State where the individual is physically located is the State of residence. [49 FR 13531, Apr. 5, 1984, as amended at 55 FR 48609, Nov. 21, 1990; 71 FR 39222, July 12, 2006] The agency must allow an individual who would be eligible under more than one category to have his eligibility determined for the category he selects. (a) The agency must provide Medicaid to otherwise eligible residents of the United States who are— (1) Citizens: (i) Under a declaration required by section 1137(d) of the Act that the individual is a citizen or national of the United States; and (ii) The individual has provided satisfactory documentary evidence of citizenship or national status, as described in §435.407. (iii) An individual for purposes of the citizenship requirement is a Medicaid applicant or recipient or an individual receiving any services under a section 1115 demonstration for which States receive Federal financial participation in their expenditures as though they were medical assistance, for example, family planning demonstrations or Medicaid demonstrations. (iv) Individuals must declare their citizenship and the State must document the individual's citizenship in the individual's eligibility file on initial applications and initial redeterminations effective July 1, 2006. (2) Qualified aliens as described in section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641) who have provided satisfactory documentary evidence of Qualified Alien status, which status has been verified with the Department of Homeland Security (DHS) under a declaration required by section 1137(d) of the Act that the applicant or recipient is an alien in a satisfactory immigration status. (b) The agency must provide payment for the services described in §440.255(c) of this chapter to residents of the State who otherwise meet the eligibility requirements of the State plan (except for receipt of AFDC, SSI, or State Supplementary payments and the presentation of a social security number) but who do not meet the requirements of paragraphs (a) and (b) of this section. [55 FR 36819, Sept. 7, 1990, as amended at 56 FR 10807, Mar. 14, 1991; 71 FR 39222, July 12, 2006] (a) Primary evidence of citizenship and identity. The following evidence must be accepted as satisfactory documentary evidence of both identity and citizenship: (1) A U.S. passport. The Department of State issues this. A U.S. passport does not have to be currently valid to be accepted as evidence of U.S. citizenship, as long as it was originally issued without limitation. (2) A Certificate of Naturalization (DHS Forms N–550 or N–570.) Department of Homeland Security issues for naturalization. (3) A Certificate of U.S. Citizenship (DHS Forms N–560 or N–561.) Department of Homeland Security issues certificates of citizenship to individuals who derive citizenship through a parent. (4) A valid State-issued driver's license, but only if the State issuing the license requires proof of U.S. citizenship before issuance of such license or obtains a social security number from the applicant and verifies before certification that such number is valid and assigned to the applicant who is a citizen. (This provision is not effective until such time as a State makes providing evidence of citizenship a condition of issuing a driver's license and evidence that the license holder is a citizen is included on the license or in a system of records available to the Medicaid agency. The State must ensure that the process complies with this statutory provision in section 6036 of the Deficit Reduction Act of 2005. CMS will monitor compliance of States implementing this provision.); or (5) At the State's option, for States which do not provide Medicaid to individuals by virtue of their receiving SSI, a State match with the State Data Exchange for Supplementary Security Income recipients. The statute gives the Secretary authority to establish other acceptable forms of citizenship documentation. SSA documents citizenship and identity for SSI applicants and recipients and includes such information in the database provided to the States. (b) Secondary evidence of citizenship. If primary evidence from the list in paragraph (a) of this section is unavailable, an applicant or recipient should provide satisfactory documentary evidence of citizenship from the list specified in this section to establish citizenship and satisfactory documentary evidence from paragraph (e) of this section to establish identity, in accordance with the rules specified in this section. (1) A U.S. public birth certificate showing birth in one of the 50 States, the District of Columbia, Puerto Rico (if born on or after January 13, 1941), Guam (on or after April 10, 1899), the Virgin Islands of the U.S. (on or after January 17, 1917), American Samoa, Swain's Island, or the Northern Mariana Islands (after November 4, 1986 (NMI local time)). A State, at its option, may use a cross match with a State vital statistics agency to document a birth record. The birth record document may be issued by the State, Commonwealth, Territory or local jurisdiction. It must have been issued before the person was 5 years of age. An amended birth record document that is amended after 5 years of age is considered fourth level evidence of citizenship. (i) Puerto Rico: (A) Evidence of birth in Puerto Rico on or after April 11, 1899 and the applicant's statement that he or she was residing in the U.S., a U.S. possession or Puerto Rico on January 13, 1941; or (B) Evidence that the applicant was a Puerto Rican citizen and the applicant's statement that he or she was residing in Puerto Rico on March 1, 1917 and that he or she did not take an oath of allegiance to Spain. (ii) U.S. Virgin Islands: (A) Evidence of birth in the U.S. Virgin Islands, and the applicant's statement of residence in the U.S., a U.S. possession or the U.S. Virgin Islands on February 25, 1927; or (B) The applicant's statement indicating resident in the U.S. Virgin Islands as a Danish citizen on January 17, 1917 and residence in the U.S., a U.S. possession or the U.S. Virgin Islands on February 25, 1927, and that he or she did not make a declaration to maintain Danish citizenship; or (C) Evidence of birth in the U.S. Virgin Islands and the applicant's statement indicating residence in the U.S., a U.S. possession or Territory or the Canal Zone on June 28, 1932. (iii) Northern Mariana Islands (NMI) (formerly part of the Trust Territory of the Pacific Islands (TTPI)): (A) Evidence of birth in the NMI, TTPI citizenship and residence in the NMI, the U.S., or a U.S. Territory or possession on November 3, 1986 (NMI local time) and the applicant's statement that he or she did not owe allegiance to a foreign state on November 4, 1986 (NMI local time); or (B) Evidence of TTPI citizenship, continuous residence in the NMI since before November 3, 1981 (NMI local time), voter registration prior to January 1, 1975 and the applicant's statement that he or she did not owe allegiance to a foreign state on November 4, 1986 (NMI local time); or (C) Evidence of continuous domicile in the NMI since before January 1, 1974 and the applicant's statement that he or she did not owe allegiance to a foreign state on November 4, 1986 (NMI local time). (D) (2) A Certification of Report of Birth (DS–1350). The Department of State issues a DS–1350 to U.S. citizens in the U.S. who were born outside the U.S. and acquired U.S. citizenship at birth, based on the information shown on the FS–240. When the birth was recorded as a Consular Report of Birth (FS–240), certified copies of the Certification of Report of Birth Abroad (DS–1350) can be issued by the Department of State in Washington, DC. The DS–1350 contains the same information as that on the current version of Consular Report of Birth FS–240. The DS–1350 is not issued outside the U.S. (3) A Report of Birth Abroad of a U.S. Citizen (Form FS–240). The Department of State consular office prepares and issues this. A Consular Report of Birth can be prepared only at an American consular office overseas while the child is under the age of 18. Children born outside the U.S. to U.S. military personnel usually have one of these. (4) A Certification of birth issued by the Department of State (Form FS–545 or DS–1350). Before November 1, 1990, Department of State consulates also issued Form FS–545 along with the prior version of the FS–240. In 1990, U.S. consulates ceased to issue Form FS–545. Treat an FS–545 the same as the DS–1350. (5) A U.S. Citizen I.D. card. (This form was issued as Form I–197 until the 1980's by INS. Although no longer issued, holders of this document may still use it consistent with the provisions of section 1903(x) of the Act. Note that section 1903(x) of the Act incorrectly refers to the same document as an I–97.) INS issued the I–179 from 1960 until 1973. It revised the form and renumbered it as Form I–197. INS issued the I–197 from 1973 until April 7, 1983. INS issued Form I–179 and I–197 to naturalized U.S. citizens living near the Canadian or Mexican border who needed it for frequent border crossings. Although neither form is currently issued, either form that was previously issued is still valid. (6) A Northern Mariana Identification Card (I–873). (Issued by the DHS to a collectively naturalized citizen of the United States who was born in the Northern Mariana Islands before November 4, 1986.) The former Immigration and Naturalization Service (INS) issued the I–873 to a collectively naturalized citizen of the U.S. who was born in the NMI before November 4, 1986. The card is no longer issued, but those previously issued are still valid. (7) An American Indian Card (I–872) issued by the Department of Homeland Security with the classification code “KIC.” (Issued by DHS to identify U.S. citizen members of the Texas Band of Kickapoos living near the United States/Mexican border.) DHS issues this card to identify a member of the Texas Band of Kickapoos living near the U.S./Mexican border. A classification code “KIC” and a statement on the back denote U.S. citizenship. (8) A final adoption decree showing the child's name and U.S. place of birth. The adoption decree must show the child's name and U.S. place of birth. In situations where an adoption is not finalized and the State in which the child was born will not release a birth certificate prior to final adoption, a statement from a State approved adoption agency that shows the child's name and U.S. place of birth is acceptable. The adoption agency must state in the certification that the source of the place of birth information is an original birth certificate. (9) Evidence of U.S. Civil Service employment before June 1, 1976. The document must show employment by the U.S. government before June 1, 1976. Individuals employed by the U.S. Civil Service prior to June 1, 1976 had to be U.S. citizens. (10) U.S. Military Record showing a U.S. place of birth. The document must show a U.S. place of birth (for example a DD–214 or similar official document showing a U.S. place of birth.) (c) Third level evidence of citizenship. Third level evidence of U.S. citizenship is documentary evidence of satisfactory reliability that is used when neither primary nor secondary evidence is available. Third level evidence may be used only when primary evidence cannot be obtained within the State's reasonable opportunity period, secondary evidence does not exist or cannot be obtained, and the applicant or recipient alleges being born in the U.S. A second document from paragraph (e) of this section to establish identity must also be presented: (1) Extract of a hospital record on hospital letterhead established at the time of the person's birth that was created 5 years before the initial application date and that indicates a U.S. place of birth. (For children under 16 the document must have been created near the time of birth or 5 years before the date of application.) Do not accept a souvenir “birth certificate” issued by the hospital. Note: For children under 16 the document must have been created near the time of birth or 5 years before the date of application. (2) Life, health, or other insurance record showing a U.S. place of birth that was created at least 5 years before the initial application date and that indicates a U.S. place of birth. Life or health insurance records may show biographical information for the person including place of birth; the record can be used to establish U.S. citizenship when it shows a U.S. place of birth. (d) Fourth level evidence of citizenship. Fourth level evidence of citizenship is documentary evidence of the lowest reliability. Fourth level evidence should only be used in the rarest of circumstances. This level of evidence is used only when primary evidence is unavailable, both secondary and third level evidence do not exist or cannot be obtained within the State's reasonable opportunity period, and the applicant alleges a U.S. place of birth. In addition, a second document establishing identity must be presented as described in paragraph (e) of this section. (1) Federal or State census record showing U.S. citizenship or a U.S. place of birth. (Generally for persons born 1900 through 1950.) The census record must also show the applicant's age. (2) One of the following documents that show a U.S. place of birth and was created at least 5 years before the application for Medicaid. This document must be one of the following and show a U.S. place of birth: (i) Seneca Indian tribal census record. (ii) Bureau of Indian Affairs tribal census records of the Navajo Indians. (iii) U.S. State Vital Statistics official notification of birth registration. (iv) An amended U.S. public birth record that is amended more than 5 years after the person's birth. (v) Statement signed by the physician or midwife who was in attendance at the time of birth. (3) Institutional admission papers from a nursing facility, skilled care facility or other institution. Admission papers generally show biographical information for the person including place of birth; the record can be used to establish U.S. citizenship when it shows a U.S. place of birth. (4) Medical (clinic, doctor, or hospital) record created at least 5 years before the initial application date that indicates a U.S. place of birth. (For children under 16 the document must have been created near the time of birth or 5 years before the date of application.) Medical records generally show biographical information for the person including place of birth; the record can be used to establish U.S. citizenship when it shows a U.S. place of birth. (5) Written affidavit. Affidavits should ONLY be used in rare circumstances. If the documentation requirement needs to be met through affidavits, the following rules apply: (i) There must be at least two affidavits by two individuals who have personal knowledge of the event(s) establishing the applicant's or recipient's claim of citizenship (the two affidavits could be combined in a joint affidavit). (ii) At least one of the individuals making the affidavit cannot be related to the applicant or recipient. Neither of the two individuals can be the applicant or recipient. (iii) In order for the affidavit to be acceptable the persons making them must be able to provide proof of their own citizenship and identity. (iv) If the individual(s) making the affidavit has (have) information which explains why documentary evidence establishing the applicant's claim or citizenship does not exist or cannot be readily obtained, the affidavit should contain this information as well. (v) The State must obtain a separate affidavit from the applicant/recipient or other knowledgeable individual (guardian or representative) explaining why the evidence does not exist or cannot be obtained. (vi) The affidavits must be signed under penalty of perjury. (e) Evidence of identity. The following documents may be accepted as proof of identity and must accompany a document establishing citizenship from the groups of documentary evidence of citizenship in the groups in paragraphs (b) through (d) of this section. (1) A driver's license issued by a State or Territory either with a photograph of the individual or other identifying information such as name, age, sex, race, height, weight, or eye color. (2) School identification card with a photograph of the individual. (3) U.S. military card or draft record. (4) Identification card issued by the Federal, State, or local government with the same information included on driver's licenses. (5) Military dependent's identification card. (6) Native American Tribal document. (7) U.S. Coast Guard Merchant Mariner card. (8) Identity documents described in 8 CFR 274a.2(b)(1)(v)(B)(1). (i) Driver's license issued by State or Territory either with a photograph of the individual or other identifying information of the individual such as name, age, sex, race, height, weight or eye color. (ii) School identification card with a photograph of the individual. (iii) U.S. military card or draft record. (iv) Identification card issued by the Federal, State, or local government with the same information included on driver's licenses. (v) Military dependent's identification card. (vi) Native American Tribal document. (vii) U.S. Coast Guard Merchant Mariner card. (9) Certificate of Degree of Indian Blood, or other U.S. American Indian/Alaska Native Tribal document with a photograph or other personal identifying information relating to the individual. Acceptable if the document carries a photograph of the applicant or recipient, or has other personal identifying information relating to the individual. (10) At State option, a State may use a cross match with a Federal or State governmental, public assistance, law enforcement or corrections agency's data system to establish identity if the agency establishes and certifies true identity of individuals. Such agencies may include food stamps, child support, corrections, including juvenile detention, motor vehicle, or child protective services. The State Medicaid Agency is still responsible for assuring the accuracy of the identity determination. (f) Special identity rules for children. For children under 16, school records may include nursery or daycare records. If none of the above documents in the preceding groups are available, an affidavit may be used. An affidavit is only acceptable if it is signed under penalty of perjury by a parent or guardian stating the date and place of the birth of the child and cannot be used if an affidavit for citizenship was provided. (g) Special populations needing assistance. States must assist individuals to secure satisfactory documentary evidence of citizenship when because of incapacity of mind or body the individual would be unable to comply with the requirement to present satisfactory documentary evidence of citizenship in a timely manner and the individual lacks a representative to assist him or her. (h) Documentary evidence. (1) All documents must be either originals or copies certified by the issuing agency. Copies or notarized copies may not be accepted. (2) States must maintain copies of citizenship and identification documents in the case record or electronic data base and make these copies available for compliance audits. (3) States may permit applicants and recipients to submit such documentary evidence without appearing in person at a Medicaid office. States may accept original documents in person, by mail, or by a guardian or authorized representative. (4) If documents are determined to be inconsistent with pre-existing information, are counterfeit, or altered, States should investigate for potential fraud and abuse, including but not limited to, referral to the appropriate State and Federal law enforcement agencies. (5) Presentation of documentary evidence of citizenship is a one time activity; once a person's citizenship is documented and recorded in a State database subsequent changes in eligibility should not require repeating the documentation of citizenship unless later evidence raises a question of the person's citizenship. The State need only check its databases to verify that the individual already established citizenship. (6) CMS requires that as a check against fraud, using currently available automated capabilities, States will conduct a match of the applicant's name against the corresponding Social Security number that was provided. In addition, in cooperation with other agencies of the Federal government, CMS encourages States to use automated capabilities to verify citizenship and identity of Medicaid applicants. Automated capabilities may fall within the computer matching provisions of the Privacy Act of 1974, and CMS will explore any implementation issues that may arise with respect to those requirements. When these capabilities become available, States will be required to match files for individuals who used third or fourth tier documents to verify citizenship and documents to verify identity, and CMS will make available to States necessary information in this regard. States must ensure that all case records within this category will be so identified and made available to conduct these automated matches. CMS may also require States to match files for individuals who used first or second level documents to verify citizenship as well. CMS may provide further guidance to States with respect to actions required in a case of a negative match. (i) Record retention. The State must retain documents in accordance with 45 CFR 74.53. (j) Reasonable opportunity to present satisfactory documentary evidence of citizenship. States must give an applicant or recipient a reasonable opportunity to submit satisfactory documentary evidence of citizenship before taking action affecting the individual's eligibility for Medicaid. The time States give for submitting documentation of citizenship should be consistent with the time allowed to submit documentation to establish other facets of eligibility for which documentation is requested. (See §435.930 and §435.911.) [71 FR 39222, July 12, 2006] This subpart prescribes categorical requirements for determining the eligibility of both categorically and medically needy individuals specified in subparts B, C, and D of this part. For families with dependent children who are not receiving AFDC, the agency must use the definitions and procedures set forth under the State's AFDC plan to determine whether— (a) An individual is a dependent child because he is deprived of parental support or care; and (b) An individual is an eligible member of a family with dependent children. [43 FR 45204, Sept. 29, 1978, as amended at 58 FR 4929, Jan. 19, 1993] The agency must not impose an age requirement of more than 65 years. [58 FR 4929, Jan. 19, 1993] (a) Except as specified in paragraphs (b) and (c) of this section, in determining age, the agency must use the common-law method (under which an age reached the day before the anniversary of birth). (b) For families and children, the agency must use the popular usage method (under which an age is reached on the anniversary of birth), if this method is used under the State's AFDC plan. (c) For aged, blind, or disabled individuals, the agency must use the popular usage method, if the plan provides under §435.121, §435.230, or §435.330, for coverage of aged, blind, or disabled individuals who meet more restrictive eligibility requirements than those under SSI. (d) The agency may use an arbitrary date, such as July 1, for determining an individual's age if the year, but not the month, of his birth is known. [58 FR 4929, Jan. 19, 1993] (a) Definition. The agency must use the same definition of blindness as used under SSI, except that— (1) In determining the eligibility of individuals whose Medicaid eligibility is protected under §§435.130 through 435.134, the agency must use the definition of blindness that was used under the Medicaid plan in December 1973; and (2) The agency may use a more restrictive definition to determine eligibility under §435.121, if the definition is no more restrictive than that used under the Medicaid plan on January 1, 1972. (b) State plan requirement. The State plan must contain the definition of blindness, expressed in ophthalmic measurements. (a) Except as specified in paragraph (b) of this section, in determining blindness— (1) A physician skilled in the diseases of the eye or an optometrist, whichever the individual selects, must examine him, unless both of the applicant's eyes are missing; (2) The examiner must submit a report of examination to the Medicaid agency; and (3) A physician skilled in the diseases of the eye (for example, an ophthalmologist or an eye, ear, nose, and throat specialist) must review the report and determine on behalf of the agency— (i) Whether the individual meets the definition of blindness; and (ii) Whether and when re-examinations are necessary for periodic redeterminations of eligibility, as required under §435.916 of this part. (b) If an agency provides Medicaid to individuals receiving SSI on the basis of blindness, this section does not apply for those individuals. [43 FR 45204, Sept. 29, 1978, as amended at 44 FR 17937, Mar. 23, 1979] (a) Definition. The agency must use the same definition of disability as used under SSI, except that— (1) In determining the eligibility of individuals whose Medicaid eligibility is protected under §§435.130 through 435.134, the agency must use the definition of disability that was used under the Medicaid plan in December 1973; and (2) The agency may use a more restrictive definition to determine eligibility under §435.121, if the definition is no more restrictive than that used under the Medicaid plan on January 1, 1972. (b) State plan requirements. The State plan must contain the definition of disability. (a) Determinations made by SSA. The following rules and those under paragraph (b) of this section apply where an individual has applied for Medicaid on the basis of disability. (1) If the agency has an agreement with the Social Security Administration (SSA) under section 1634 of the Act, the agency may not make a determination of disability when the only application is filed with SSA. (2) The agency may not make an independent determination of disability if SSA has made a disability determination within the time limits set forth in §435.911 on the same issues presented in the Medicaid application. A determination of eligibility for SSI payments based on disability that is made by SSA automatically confers Medicaid eligibility, as provided for under §435.909. (b) Effect of SSA determinations. (1) Except in the circumstances specified in paragraph (c)(3) of this section— (i) An SSA disability determination is binding on an agency until the determination is changed by SSA. (ii) If the SSA determination is changed, the new determination is also binding on the agency. (2) The agency must refer to SSA all applicants who allege new information or evidence affecting previous SSA determinations of ineligibility based upon disability for reconsideration or reopening of the determination, except in cases specified in paragraph (c)(4) of this section. (c) Determinations made by the Medicaid agency. The agency must make a determination of disability in accordance with the requirements of this section if any of the following circumstances exist: (1) The individual applies for Medicaid as a non-cash recipient and has not applied to SSA for SSI cash benefits, whether or not a State has a section 1634 agreement with SSA; or an individual applies for Medicaid and has applied to SSA for SSI benefits and is found ineligible for SSI for a reason other than disability. (2) The individual applies both to SSA for SSI and to the State Medicaid agency for Medicaid, the State agency has a section 1634 agreement with SSA, and SSA has not made an SSI disability determination within 90 days from the date of the individual's application for Medicaid. (3) The individual applies to SSA for SSI and to the State Medicaid agency for Medicaid, the State does not have a section 1634 agreement with SSA, and either the State uses more restrictive criteria than SSI for determining Medicaid eligibility under its section 1902(f) option or, in the case of a State that uses SSI criteria, SSA has not made an SSI disability determination in time for the State to comply with the Medicaid time limit for making a prompt determination on an individual's application for Medicaid. (4) The individual applies for Medicaid as a non-cash recipient, whether or not the State has a section 1634 agreement with SSA, and— (i) Alleges a disabling condition different from, or in addition to, that considered by SSA in making its determination; or (ii) Alleges more than 12 months after the most recent SSA determination denying disability that his or her condition has changed or deteriorated since that SSA determination and alleges a new period of disability which meets the durational requirements of the Act, and has not applied to SSA for a determination with respect to these allegations. (iii) Alleges less than 12 months after the most recent SSA determination denying disability that his or her condition has changed or deteriorated since that SSA determination, alleges a new period of disability which meets the durational requirements of the Act, and— (A) Has applied to SSA for reconsideration or reopening of its disability decision and SSA refused to consider the new allegations; and/or (B) He or she no longer meets the nondisability requirements for SSI but may meet the State's nondisability requirements for Medicaid eligibility. (d) Basis for determinations. The agency must make a determination of disability as provided in paragraph (c) of this section— (1) On the basis of the evidence required under paragraph (e) of this section; and (2) In accordance with the requirements for evaluating that evidence under the SSI program specified in 20 CFR 416.901 through 416.998. (e) Medical and nonmedical evidence. The agency must obtain a medical report and other nonmedical evidence for individuals applying for Medicaid on the basis of disability. The medical report and nonmedical evidence must include diagnosis and other information in accordance with the requirements for evidence applicable to disability determinations under the SSI program specified in 20 CFR part 416, subpart I. (f) Disability review teams—(1) Function. A review team must review the medical report and other evidence required under paragraph (e) of this section and determine on behalf of the agency whether the individual's condition meets the definition of disability. (2) Composition. The review team must be composed of a medical or psychological consultant and another individual who is qualified to interpret and evaluate medical reports and other evidence relating to the individual's physical or mental impairments and, as necessary, to determine the capacities of the individual to perform substantial gainful activity, as specified in 20 CFR part 416, subpart J. (3) Periodic reexaminations. The review team must determine whether and when reexaminations will be necessary for periodic redeterminations of eligibility as required under §435.916 of this part, using the principles set forth in 20 CFR 416.989 and 416.990. If a State uses the same definition of disability as SSA, as provided for under §435.540, and a recipient is Medicaid eligible because he or she receives SSI, this paragraph (f)(3) does not apply. The reexamination will be conducted by SSA. [54 FR 50761, Dec. 11, 1989] This subpart prescribes: (a) General financial requirements and options for determining the eligibility of both categorically and medically needy individuals specified in subparts B, C, and D of this part. Subparts H and I of this part prescribe additional financial requirements. (b) [Reserved] [58 FR 4929, Jan. 19, 1993, as amended at 59 FR 43052, Aug. 22, 1994] (a) Definitions. For purposes of this section, cash assistance financial methodologies refers to the income and resources methodologies of the AFDC, SSI, or State supplement programs, or, for aged, blind, and disabled individuals in States that use more restrictive criteria than SSI, the methodologies established in accordance with the requirements of §§435.121 and 435.230. (b) Basic rule for use of cash assistance methodologies. Except as specified in paragraphs (c) and (d) of this section or in §435.121 in determining financial eligibility of individuals as categorically and medically needy, the agency must apply the financial methodologies and requirements of the cash assistance program that is most closely categorically related to the individual's status. (c) Financial responsibility of relatives. The agency must use the requirements for financial responsibility of relatives specified in §435.602. (d) Use of less restrictive methodologies than those under cash assistance programs. (1) At State option, and subject to the conditions of paragraphs (d)(2) through (d)(5) of this section, the agency may apply income and resource methodologies that are less restrictive than the cash assistance methodologies in determining eligibility of the following groups: (i) Qualified pregnant women and children under the mandatory categorically needy group under §435.116; (ii) Low-income pregnant women, infants, and children specified in section 1902(a)(10)(i)(IV), 1902(a)(10)(A)(i)(VI), and 1902(a)(10)(A)(i)(VII) of the Act; (iii) Qualified Medicare beneficiaries specified in sections 1902(a)(10)(E) and 1905(p) of the Act; (iv) Optional categorically needy individuals under groups established under subpart C of this part and section 1902(a)(10)(A)(ii) of the Act; (v) Medically needy individuals under groups established under subpart D of this part and section 1902(a)(10)(C)(i)(III) of the Act; and (vi) Aged, blind, and disabled individuals in States using more restrictive eligibility requirements than SSI under groups established under §§435.121 and 435.230. (2) The income and resource methodologies that an agency elects to apply to groups of individuals described in paragraph (d)(1) of this section may be less restrictive, but no more restrictive (except in States using more restrictive requirements than SSI), than: (i) For groups of aged, blind, and disabled individuals, the SSI methodologies; or (ii) For all other groups, the methodologies under the State plan most closely categorically related to the individual's status. (3) A financial methodology is considered to be no more restrictive if, by using the methodology, additional individuals may be eligible for Medicaid and no individuals who are otherwise eligible are by use of that methodology made ineligible for Medicaid. (4) The less restrictive methodology applied under this section must be comparable for all persons within each category of assistance (aged, or blind, or disabled, or AFDC related) within an eligibility group. For example, if the agency chooses to apply less restrictive income or resource methodology to an eligibility group of aged individuals, it must apply that methodology to all aged individuals within the selected group. (5) The application of the less restrictive income and resource methodologies permitted under this section must be consistent with the limitations and conditions on FFP specified in subpart K of this part. (e) [Reserved] (f) State plan requirements. (1) The State plan must specify that, except to the extent precluded in §435.602, in determining financial eligibility of individuals, the agency will apply the cash assistance financial methodologies and requirements, unless the agency chooses to apply less restrictive income and resource methodologies in accordance with paragraph (d) of this section. (2) If the agency chooses to apply less restrictive income and resource methodologies, the State plan must specify: (i) The less restrictive methodologies that will be used; and (ii) The eligibility group or groups to which the less restrictive methodologies will be applied. [58 FR 4929, Jan. 19, 1993, as amended at 59 FR 43052, Aug. 22, 1994] (a) Basic requirements. Subject to the provisions of paragraphs (b) and (c) of this section, in determining financial responsibility of relatives and other persons for individuals under Medicaid, the agency must apply the following requirements and methodologies: (1) Except for a spouse of an individual or a parent for a child who is under age 21 or blind or disabled, the agency must not consider income and resources of any relative as available to an individual. (2) In relation to individuals under age 21 (as described in section 1905(a)(i) of the Act), the financial responsibility requirements and methodologies that apply include considering the income and resources of parents or spouses whose income and resources would be considered if the individual under age 21 were dependent under the State's approved AFDC plan, whether or not they are actually contributed, except as specified under paragraphs (c) and (d) of this section. These requirements and methodologies must be applied in accordance with the provisions of the State's approved AFDC plan. (3) When a couple ceases to live together, the agency must count only the income of the individual spouse in determining his or her eligibility, beginning the first month following the month the couple ceases to live together. (4) In the case of eligible institutionalized spouses who are aged, blind, and disabled and who have shared the same room in a title XIX Medicaid institution, the agency has the option of considering these couples as eligible couples for purposes of counting income and resources or as eligible individuals, whichever is more advantageous to the couple. (b) Requirements for States using more restrictive requirements. Subject to the provisions of paragraph (c) of this section, in determining financial eligibility of aged, blind, or disabled individuals in States that apply eligibility requirements more restrictive than those used under SSI, the agency must apply: (1) The requirements and methodologies for financial responsibility of relatives used under the SSI program; or (2) More extensive requirements for relative responsibility than specified in §435.602(a) but no more extensive than the requirements under the Medicaid plan in effect on January 1, 1972. (c) Use of less restrictive methodologies. The agency may apply income and resources methodologies that are less restrictive than those used under the cash assistance programs as specified in the State Medicaid plan in accordance with §435.601(d). (d) [Reserved] [58 FR 4930, Jan. 19, 1993, as amended at 59 FR 43052, Aug. 22, 1994] (a) As a condition of eligibility, the agency must require applicants and recipients to take all necessary steps to obtain any annuities, pensions, retirement, and disability benefits to which they are entitled, unless they can show good cause for not doing so. (b) Annuities, pensions, retirement and disability benefits include, but are not limited to, veterans' compensation and pensions, OASDI benefits, railroad retirement benefits, and unemployment compensation. [43 FR 45204, Sept. 29, 1978. Redesignated at 58 FR 4931, Jan. 19, 1993] (a) As a condition of eligibility, the agency must require legally able applicants and recipients to: (1) Assign rights to the Medicaid agency to medical support and to payment for medical care from any third party; (2) Cooperate with the agency in establishing paternity and in obtaining medical support and payments, unless the individual establishes good cause for not cooperating, and except for individuals described in section 1902 (1)(1)(A) of the Act (poverty level pregnant women), who are exempt from cooperating in establishing paternity and obtaining medical support and payments from, or derived from, the father of the child born out of wedlock; and (3) Cooperate in identifying and providing information to assist the Medicaid agency in pursuing third parties who may be liable to pay for care and services under the plan, unless the individual establishes good cause for not cooperating. (b) The requirements for assignment of rights must be applied uniformly for all groups covered under the plan. (c) The requirements of paragraph (a) of this section for the assignment of rights to medical support and other payments and cooperation in obtaining medical support and payments are effective for medical assistance furnished on or after October 1, 1984. The requirement for cooperation in identifying and providing information for pursuing liable third parties is effective for medical assistance furnished on or after July 1, 1988. [55 FR 48609, Nov. 21, 1990, as amended at 58 FR 4907, Jan. 19, 1993. Redesignated at 58 FR 4931, Jan. 19, 1993] (a) If an agency, under §435.231, provides Medicaid to individuals in medical institutions, nursing facilities, and intermediate care facilities for the mentally retarded who would not be eligible for SSI or State supplements if they were not institutionalized, the agency must use income standards based on the greater need for financial assistance that the individuals would have if they were not in the institution. The standards may vary by the level of institutional care needed by the individual (hospital, nursing facility, or intermediate level care for the mentally retarded), or by other factors related to individual needs. (See §435.1005 for FFP limits on income standards established under this section.) (b) In determining the eligibility of individuals under the income standards established under this section, the agency must not take into account income that would be disregarded in determining eligibility for SSI or for an optional State supplement. (c) The agency must apply the income standards established under this section effective with the first day of a period of not less than 30 consecutive days of institutionalization. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24884, Apr. 11, 1980; 53 FR 3595, Feb. 8, 1988. Redesignated and amended at 58 FR 4932, Jan. 19, 1993] (a) Income eligibility methods. In determining income eligibility of aged, blind, and disabled individuals in a State using more restrictive eligibility requirements than SSI, the agency must use the methods for treating income elected under §§435.121 and 435.230, under §435.601. The methods used must be comparable for all individuals within each category of individuals under §435.121 and each category of individuals within each optional categorically needy group included under §435.230 and for each category of individuals under the medically needy option described under §435.800. (b) Categorically needy versus medically needy eligibility. (1) Individuals who have income equal to, or below, the categorically needy income standards described in §§435.121 and 435.230 are categorically needy in States that include the medically needy under their plans. (2) Categorically needy eligibility in States that do not include the medically needy is determined in accordance with the provisions of §435.121 (e)(4) and (e)(5). [58 FR 4932, Jan. 19, 1993] In determining whether individuals continue to meet the income requirements used in December 1973, for purposes of determining eligibility under §§435.131, 435.132, and 435.133, the agency must deduct increased OASDI payments to the same extent that these deductions were in effect in December 1973. These deductions are required by section 306 of the Social Security Amendments of 1972 (Pub. L. 92–603) and section 1007 of Pub. L. 91–172 (enacted Dec. 30, 1969), modified by section 304 of Pub. L. 92–603. [43 FR 45204, Sept. 29, 1978. Redesignated at 58 FR 4932, Jan. 19, 1993] This subpart prescribes specific financial requirements for determining the post-eligibility treatment of income of categorically needy individuals, including requirements for applying patient income to the cost of care. [58 FR 4931, Jan. 19, 1993] (a) Basic rules. (1) The agency must reduce its payment to an institution, for services provided to an individual specified in paragraph (b) of this section, by the amount that remains after deducting the amounts specified in paragraphs (c) and (d) of this section, from the individual's total income, (2) The individual's income must be determined in accordance with paragraph (e) of this section. (3) Medical expenses must be determined in accordance with paragraph (f) of this section. (b) Applicability. This section applies to the following individuals in medical institutions and intermediate care facilities. (1) Individuals receiving cash assistance under SSI or AFDC who are eligible for Medicaid under §435.110 or §435.120. (2) Individuals who would be eligible for AFDC, SSI, or an optional State supplement except for their institutional status and who are eligible for Medicaid under §435.211. (3) Aged, blind, and disabled individuals who are eligible for Medicaid, under §435.231, under a higher income standard than the standard used in determining eligibility for SSI or optional State supplements. (c) Required deductions. In reducing its payment to the institution, the agency must deduct the following amounts, in the following order, from the individual's total income, as determined under paragraph (e) of this section. Income that was disregarded in determining eligibility must be considered in this process. (1) Personal needs allowance. A personal needs allowance that is reasonable in amount for clothing and other personal needs of the individual while in the institution. This protected personal needs allowance must be at least— (i) $30 a month for an aged, blind, or disabled individual, including a child applying for Medicaid on the basis of blindness or disability; (ii) $60 a month for an institutionalized couple if both spouses are aged, blind, or disabled and their income is considered available to each other in determining eligibility; and (iii) For other individuals, a reasonable amount set by the agency, based on a reasonable difference in their personal needs from those of the aged, blind, and disabled. (2) Maintenance needs of spouse. For an individual with only a spouse at home, an additional amount for the maintenance needs of the spouse. This amount must be based on a reasonable assessment of need but must not exceed the highest of— (i) The amount of the income standard used to determine eligibility for SSI for an individual living in his own home, if the agency provides Medicaid only to individuals receiving SSI; (ii) The amount of the highest income standard, in the appropriate category of age, blindness, or disability, used to determine eligibility for an optional State supplement for an individual in his own home, if the agency provides Medicaid to optional State supplement recipients under §435.230; or (iii) The amount of the medically needy income standard for one person established under §435.811, if the agency provides Medicaid under the medically needy coverage option. (3) Maintenance needs of family. For an individual with a family at home, an additional amount for the maintenance needs of the family. This amount must— (i) Be based on a reasonable assessment of their financial need; (ii) Be adjusted for the number of family members living in the home; and (iii) Not exceed the higher of the need standard for a family of the same size used to determine eligibility under the State's approved AFDC plan or the medically needy income standard established under §435.811, if the agency provides Medicaid under the medically needy coverage option for a family of the same size. (4) Expenses not subject to third party payment. Amounts for incurred expenses for medical or remedial care that are not subject to payment by a third party, including— (i) Medicare and other health insurance premiums, deductibles, or coinsurance charges; and (ii) Necessary medical or remedial care recognized under State law but not covered under the State's Medicaid plan, subject to reasonable limits the agency may establish on amounts of these expenses. (5) Continued SSI and SSP benefits. The full amount of SSI and SSP benefits that the individual continues to receive under sections 1611(e)(1) (E) and (G) of the Act. (d) Optional deduction: Allowance for home maintenance. For single individuals and couples, an amount (in addition to the personal needs allowance) for maintenance of the individual's or couple's home if— (1) The amount is deducted for not more than a 6-month period; and (2) A physician has certified that either of the individuals is likely to return to the home within that period. (3) For single individuals and couples, an amount (in addition to the personal needs allowance) for maintenance of the individual's or couple's home if— (i) The amount is deducted for not more than a 6-month period; and (ii) A physician has certified that either of the individuals is likely to return to the home within that period. (e) Determination of income—(1) Option. In determining the amount of an individual's income to be used to reduce the agency's payment to the institution, the agency may use total income received, or it may project monthly income for a prospective period not to exceed 6 months. (2) Basis for projection. The agency must base the projection on income received in the preceding period, not to exceed 6 months, and on income expected to be received. (3) Adjustments. At the end of the prospective period specified in paragraph (e)(1) of this section, or when any significant change occurs, the agency must reconcile estimates with income received. (f) Determination of medical expenses—(1) Option. In determining the amount of medical expenses to be deducted from an individual's income, the agency may deduct incurred medical expenses, or it may project medical expenses for a prospective period not to exceed 6 months. (2) Basis for projection. The agency must base the estimate on medical expenses incurred in the preceding period, not to exceed 6 months, and on medical expenses expected to be incurred. (3) Adjustments. At the end of the prospective period specified in paragraph (f)(1) of this section, or when any significant change occurs, the agency must reconcile estimates with incurred medical expenses. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24884, Apr. 11, 1980; 48 FR 5735, Feb. 8, 1983; 53 FR 3595, Feb. 8, 1988; 55 FR 33705, Aug. 17, 1990; 56 FR 8850, 8854, Mar. 1, 1991; 58 FR 4932, Jan. 19, 1993] (a) The agency must reduce its payment for home and community-based services provided to an individual specified in paragraph (b) of this section, by the amount that remains after deducting the amounts specified in paragraph (c) of this section from the individual's income. (b) This section applies to individuals who are eligible for Medicaid under §435.217 and are receiving home and community-based services furnished under a waiver of Medicaid requirements specified in part 441, subpart G or H of this subchapter. (c) In reducing its payment for home and community-based services, the agency must deduct the following amounts, in the following order, from the individual's total income (including amounts disregarded in determining eligibility): (1) An amount for the maintenance needs of the individual that the State may set at any level, as long as the following conditions are met: (i) The deduction amount is based on a reasonable assessment of need. (ii) The State establishes a maximum deduction amount that will not be exceeded for any individual under the waiver. (2) For an individual with only a spouse at home, an additional amount for the maintenance needs of the spouse. This amount must be based on a reasonable assessment of need but must not exceed the highest of— (i) The amount of the income standard used to determine eligibility for SSI for an individual living in his own home, if the agency provides Medicaid only to individuals receiving SSI; (ii) The amount of the highest income standard, in the appropriate category of age, blindness, or disability, used to determine eligibility for an optional State supplement for an individual in his own home, if the agency provides Medicaid to optional State supplement recipients under §435.230; or (iii) The amount of the medically needy income standard for one person established under §§435.811 and 435.814, if the agency provides Medicaid under the medically needy coverage option. (3) For an individual with a family at home, an additional amount for the maintenance needs of the family. This amount must— (i) Be based on a reasonable assessment of their financial need; (ii) Be adjusted for the number of family members living in the home; and (iii) Not exceed the higher of the need standard for a family of the same size used to determine eligibility under the State's AFDC plan or the medically needy income standard established under §435.811 for a family of the same size. (4) Amounts for incurred expenses for medical or remedial care that are not subject to payment by a third party including— (i) Medicare and other health insurance premiums, deductibles, or coinsurance charges; and (ii) Necessary medical or remedial care recognized under State law but not covered under the State's Medicaid plan, subject to reasonable limits the agency may establish on amounts of these expenses. [46 FR 48539, Oct. 1, 1981, as amended at 50 FR 10026, Mar. 13, 1985; 57 FR 29155, June 30, 1992; 58 FR 4932, Jan. 19, 1993; 59 FR 37715, July 25, 1994] (a) Basic rules. (1) The agency must reduce its payment to an institution, for services provided to an individual specified in paragraph (b) of this section, by the amount that remains after deducting the amounts specified in paragraphs (c) and (d) of this section, from the individual's total income. (2) The individual's income must be determined in accordance with paragraph (e) of this section. (3) Medical expenses must be determined in accordance with paragraph (f) of this section. (b) Applicability. This section applies to the following individuals in medical institutions and intermediate care facilities: (1) Individuals receiving cash assistance under AFDC who are eligible for Medicaid under §435.110 and individuals eligible under §435.121. (2) Individuals who would be eligible for AFDC, SSI, or an optional State supplement except for their institutional status and who are eligible for Medicaid under §435.211. (3) Aged, blind, and disabled individuals who are eligible for Medicaid, under §435.231, under a higher income standard than the standard used in determining eligibility for SSI or optional State supplements. (c) Required deductions. The agency must deduct the following amounts, in the following order, from the individual's total income, as determined under paragraph (e) of this section. Income that was disregarded in determining eligibility must be considered in this process. (1) Personal needs allowance. A personal needs allowance that is reasonable in amount for clothing and other personal needs of the individual while in the institution. This protected personal needs allowance must be at least— (i) $30 a month for an aged, blind, or disabled individual, including a child applying for Medicaid on the basis of blindness or disability; (ii) $60 a month for an institutionalized couple if both spouses are aged, blind, or disabled and their income is considered available to each other in determining eligibility; and (iii) For other individuals, a reasonable amount set by the agency, based on a reasonable difference in their personal needs from those of the aged, blind, and disabled. (2) Maintenance needs of spouse. For an individual with only a spouse at home, an additional amount for the maintenance needs of the spouse. This amount must be based on a reasonable assessment of need but must not exceed the higher of— (i) The more restrictive income standard established under §435.121; or (ii) The amount of the medically needy income standard for one person established under §435.811, if the agency provides Medicaid under the medically needy coverage option. (3) Maintenance needs of family. For an individual with a family at home, an additional amount for the maintenance needs of the family. This amount must— (i) Be based on a reasonable assessment of their financial need; (ii) Be adjusted for the number of family members living in the home; and (iii) Not exceed the higher of the need standard for a family of the same size used to determine eligibility under the State's approved AFDC plan or the medically needy income standard established under §435.811, if the agency provides Medicaid under the medically needy coverage option for a family of the same size. (4) Expenses not subject to third party payment. Amounts for incurred expenses for medical or remedial care that are not subject to payment by a third party, including— (i) Medicare and other health insurance permiums, deductibles, or coinsurance charges; and (ii) Necessary medical or remedial care recognized under State law but not covered under the State's Medicaid plan, subject to reasonable limits the agency may establish on amounts of these expenses. (5) Continued SSI and SSP benefits. The full amount of SSI and SSP benefits that the individual continues to receive under sections 1611(e)(1) (E) and (G) of the Act. (d) Optional deduction: Allowance for home maintenance. For single individuals and couples, an amount (in addition to the personal needs allowance) for maintenance of the individual's or couple's home if— (1) The amount is deducted for not more than a 6-month period; and (2) A physician has certified that either of the individuals is likely to return to the home within that period. (e) Determination of income—(1) Option. In determining the amount of an individual's income to be used to reduce the agency's payment to the institution, the agency may use total income received, or it may project total monthly income for a prospective period not to exceed 6 months. (2) Basis for projection. The agency must base the projection on income received in the preceding period, not to exceed 6 months, and on income expected to be received. (3) Adjustments. At the end of the prospective period specified in paragraph (e)(1) of this section, or when any significant change occurs, the agency must reconcile estimates with income received. (f) Determination of medical expenses—(1) Option. In determining the amount of medical expenses that may be deducted from an individual's income, the agency may deduct incurred medical expenses, or it may project medical expenses for a prospective period not to exceed 6 months. (2) Basis for projection. The agency must base the estimate on medical expenses incurred in the preceding period, not to exceed 6 months, and medical expenses expected to be incurred. (3) Adjustments. At the end of the prospective period specified in paragraph (f)(1) of this section, or when any significant change occurs, the agency must reconcile estimates with incurred medical expenses. [45 FR 24884, Apr. 11, 1980, as amended at 48 FR 5735, Feb. 8, 1983; 53 FR 3596, Feb. 8, 1988; 55 FR 33705, Aug. 17, 1990; 56 FR 8850, 8854, Mar. 1, 1991; 58 FR 4932, Jan. 19, 1993] (a) The agency must reduce its payment for home and community-based services provided to an individual specified in paragraph (b) of this section, by the amount that remains after deducting the amounts specified in paragraph (c) of this section from the individual's income. (b) This section applies to individuals who are eligible for Medicaid under §435.217, and are eligible for home and community-based services furnished under a waiver of State plan requirements specified in part 441, subpart G or H of this subchapter. (c) In reducing its payment for home and community-based services, the agency must deduct the following amounts, in the following order, from the individual's total income (including amounts disregarded in determining eligibility): (1) An amount for the maintenance needs of the individual that the State may set at any level, as long as the following conditions are met: (i) The deduction amount is based on a reasonable assessment of need. (ii) The State establishes a maximum deduction amount that will not be exceeded for any individual under the waiver. (2) For an individual with only a spouse at home, an additional amount for the maintenance needs of the spouse. This amount must be based on a reasonable assessment of need but must not exceed the higher of— (i) The more restrictive income standard established under §435.121; or (ii) The medically needy standard for an individual. (3) For an individual with a family at home, an additional amount for the maintenance needs of the family. This amount must— (i) Be based on a reasonable assessment of their financial need; (ii) Be adjusted for the number of family members living in the home; and (iii) Not exceed the higher of the need standard for a family of the same size used to determine eligibility under the State's approved AFDC plan or the medically needy income standard established under §435.811 for a family of the same size. (4) Amounts for incurred expenses for medical or remedial care that are not subject to payment by a third party, including— (i) Medicare and other health insurance premiums, deductibles, or coinsurance charges; and (ii) Necessary medical or remedial care recognized under State law but not covered under the State's Medicaid plan, subject to reasonable limits the agency may establish on amounts of these expenses. [46 FR 48540, Oct. 1, 1981, as amended at 50 FR 10026, Mar. 13, 1985; 57 FR 29155, June 30, 1992; 58 FR 4932, Jan. 19, 1993; 59 FR 37716, July 25, 1994] This subpart prescribes specific financial requirements for determining the eligibility of medically needy individuals under subpart D of this part. [58 FR 4932, Jan. 19, 1993] (a) Except as provided in paragraph (d)(2) of this section, to determine eligibility of medically needy individuals, a Medicaid agency must use a single income standard under this subpart that meets the requirements of this section. (b) The income standard must take into account the number of persons in the assistance unit. Subject to the limitations specified in paragraph (e) of this section. The standard may not diminish by an increase in the number of persons in the assistance unit. For example, if the income level in the standard for an assistance unit of two is set at $400, the income level in the standard for an assistance unit of three may not be less than $400. (c) In States that do not use more restrictive requirements than SSI, the income standard must be set at an amount that is no lower than the lowest income standards used under the cash assistance programs that are related to the State's covered medically needy eligibility group or groups of individuals under §435.301. The amount of the income standard is subject to the limitations specified in paragraph (e) of this section. (d) In States that use more restrictive requirements for aged, blind, and disabled individuals than SSI: (1) For all individuals except aged, blind, and disabled individuals, the income standard must be set in accordance with paragraph (c) of this section; and (2) For all aged, blind, and disabled individuals or any combination of these groups of individuals, the agency may establish a separate single medically needy income standard that is more restrictive than the single income standard set under paragraph (c) of this section. However, the amount of the more restrictive separate standard for aged, blind, or disabled individuals must be no lower than the higher of the lowest categorically needy income standard currently applied under the State's more restrictive criteria under §435.121 or the medically needy income standard in effect under the State's Medicaid plan on January 1, 1972. The amount of the income standard is subject to the limitations specified in paragraph (e) of this section. (e) The income standards specified in paragraphs (c) and (d) of this section must not exceed the maximum dollar amount of income allowed for purposes of FFP under §435.1007. (f) The income standard may vary based on the variations between shelter costs in urban areas and rural areas. [58 FR 4932, Jan. 19, 1993] The State plan must specify the income standard for the covered medically needy groups. [58 FR 4933, Jan. 19, 1993] The agency must determine income eligibility of medically needy individuals in accordance with this section. (a) Budget periods. (1) The agency must use budget periods of not more than 6 months to compute income. The agency may use more than one budget period. (2) The agency may include in the budget period in which income is computed all or part of the 3-month retroactive period specified in §435.914. The budget period can begin no earlier than the first month in the retroactive period in which the individual received covered services. This provision applies to all medically needy individuals except in groups for whom criteria more restrictive than that used in the SSI program apply. (3) If the agency elects to begin the first budget period for the medically needy in any month of the 3-month period prior to the date of the application in which the applicant received covered services, this election applies to all medically needy groups. (b) Determining countable income. The agency must deduct the following amounts from income to determine the individual's countable income. (1) For individuals under age 21 and caretaker relatives, the agency must deduct amounts that would be deducted in determining eligibility under the State's AFDC plan. (2) For aged, blind, or disabled individuals in States covering all SSI recipients, the agency must deduct amounts that would be deducted in determining eligibility under SSI. However, the agency must also deduct the highest amounts from income that would be deducted in determining eligibility for optional State supplements if these supplements are paid to all individuals who are receiving SSI or would be eligible for SSI except for their income. (3) For aged, blind, or disabled individuals in States using income requirements more restrictive than SSI, the agency must deduct amounts that are no more restrictive than those used under the Medicaid plan on January 1, 1972 and no more liberal than those used in determining eligibility under SSI or an optional State supplement. However, the amounts must be at least the same as those that would be deducted in determining eligibility, under §435.121, of the categorically needy. (c) Eligibility based on countable income. If countable income determined under paragraph (b) of this section is equal to or less than the applicable income standard under §435.814, the individual or family is eligible for Medicaid. (d) Deduction of incurred medical expenses. If countable income exceeds the income standard, the agency must deduct from income medical expenses incurred by the individual or family or financially responsible relatives that are not subject to payment by a third party. An expense is incurred on the date liability for the expense arises. The agency must determine deductible incurred expenses in accordance with paragraphs (e), (f), and (g) of this section and deduct those expenses in accordance with paragraph (h) of this section. (e) Determination of deductible incurred expenses: Required deductions based on kinds of services. Subject to the provisions of paragraph (g), in determining incurred medical expenses to be deducted from income, the agency must include the following: (1) Expenses for Medicare and other health insurance premiums, and deductibles or coinsurance charges, including enrollment fees, copayments, or deductibles imposed under §447.51 or §447.53 of this subchapter; (2) Expenses incurred by the individual or family or financially responsible relatives for necessary medical and remedial services that are recognized under State law but not included in the plan; (3) Expenses incurred by the individual or family or by financially responsible relatives for necessary medical and remedial services that are included in the plan, including those that exceed agency limitations on amount, duration, or scope of services. (f) Determination of deductible incurred expenses: Required deductions based on the age of bills. Subject to the provisions of paragraph (g), in determining incurred medical expenses to be deducted from income, the agency must include the following: (1) For the first budget period or periods that include only months before the month of application for medical assistance, expenses incurred during such period or periods, whether paid or unpaid, to the extent that the expenses have not been deducted previously in establishing eligibility; (2) For the first prospective budget period that also includes any of the 3 months before the month of application for medical assistance, expenses incurred during such budget period, whether paid or unpaid, to the extent that the expenses have not been deducted previously in establishing eligibility; (3) For the first prospective budget period that includes none of the months preceding the month of application, expenses incurred during such budget period and any of the 3 preceding months, whether paid or unpaid, to the extent that the expenses have not been deducted previously in establishing eligibility; (4) For any of the 3 months preceding the month of application that are not includable under paragraph (f)(2) of this section, expenses incurred in the 3-month period that were a current liability of the individual in any such month for which a spenddown calculation is made and that had not been previously deducted from income in establishing eligibility for medical assistance; (5) Current payments (that is, payments made in the current budget period) on other expenses incurred before the current budget period and not previously deducted from income in any budget period in establishing eligibility for such period; and (6) If the individual's eligibility for medical assistance was established in each such preceding period, expenses incurred before the current budget period but not previously deducted from income in establishing eligibility, to the extent that such expenses are unpaid and are: (i) Described in paragraphs (e)(1) through (e)(3) of this section; and (ii) Carried over from the preceding budget period or periods because the individual had a spenddown liability in each such preceding period that was met without deducting all such incurred, unpaid expenses. (g) Determination of deductible incurred medical expenses: Optional deductions. In determining incurred medical expenses to be deducted from income, the agency— (1) May include medical institutional expenses (other than expenses in acute care facilities) projected to the end of the budget period at the Medicaid reimbursement rate; (2) May, to the extent determined by the State and specified in its approved plan, include expenses incurred earlier than the third month before the month of application (except States using more restrictive eligibility criteria under the option in section 1902(f) of the Act must deduct incurred expenses regardless of when the expenses were incurred); and (3) May set reasonable limits on the amount to be deducted for expenses specified in paragraphs (e)(1), (e)(2), and (g)(2) of this section. (h) Order of deduction. The agency must deduct incurred medical expenses that are deductible under paragraphs (e), (f), and (g) of this section in the order prescribed under one of the following three options: (1) Type of service. Under this option, the agency deducts expenses in the following order based on type of expense or service: (i) Cost-sharing expenses as specified in paragraph (e)(1) of this section. (ii) Services not included in the State plan as specified in paragraph (e)(2) of this section. (iii) Services included in the State plan as specified in paragraph (e)(3) of this section but that exceed limitations on amounts, duration, or scope of services. (iv) Services included in the State plan as specified in paragraph (e)(3) of this section but that are within agency limitations on amount, duration, or scope of services. (2) Chronological order by service date. Under this option, the agency deducts expenses in chronological order by the date each service is furnished, or in the case of insurance premiums, coinsurance or deductible charges, the date such amounts are due. Expenses for services furnished on the same day may be deducted in any reasonable order established by the State. (3) Chronological order by bill submission date. Under this option, the agency deducts expenses in chronological order by the date each bill is submitted to the agency by the individual. If more than one bill is submitted at one time, the agency must deduct the bills from income in the order prescribed in either paragraph (h)(1) or (h)(2) of this section. (i) Eligibility based on incurred medical expenses. (1) Whether a State elects partial or full month coverage, an individual who is expected to contribute a portion of his or her income toward the costs of institutional care or home and community-based services under §§435.725, 435.726, 435.733, 435.735 or 435.832 is eligible on the first day of the applicable budget (spenddown) period— (i) If his or her spenddown liability is met after the first day of the budget period; and (ii) If beginning eligibility after the first day of the budget period makes the individual's share of health care expenses under §§435.725, 435.726, 435.733, 435.735 or 435.832 greater than the individual's contributable income determined under these sections. (2) At the end of the prospective period specified in paragraphs (f)(2) and (f)(3) of this section, and any subsequent prospective period or, if earlier, when any significant change occurs, the agency must reconcile the projected amounts with the actual amounts incurred, or with changes in circumstances, to determine if the adjusted deduction of incurred expenses reduces income to the income standard. (3) Except as provided in paragraph (i)(1) of this section, in States that elect partial month coverage, an individual is eligible for Medicaid on the day that the deduction of incurred health care expenses (and of projected institutional expenses if the agency elects the option under paragraph (g)(1) of this section) reduces income to the income standard. (4) Except as provided in paragraph (i)(1) of this section, in States that elect full month coverage, an individual is eligible on the first day of the month in which spenddown liability is met. (5) Expenses used to meet spenddown liability are not reimbursable under Medicaid. To the extent necessary to prevent the transfer of an individual's spenddown liability to the Medicaid program, States must reduce the amount of provider charges that would otherwise be reimbursable under Medicaid. [59 FR 1672, Jan. 12, 1994] (a) Basic rules. (1) The agency must reduce its payment to an institution, for services provided to an individual specified in paragraph (b) of this section, by the amount that remains after deducting the amounts specified in paragraphs (c) and (d) of this section, from the individual's total income. (2) The individual's income must be determined in accordance with paragraph (e) of this section. (3) Medical expenses must be determined in accordance with paragraph (f) of this section. (b) Applicability. This section applies to medically needy individuals in medical institutions and intermediate care facilities. (c) Required deductions. The agency must deduct the following amounts, in the following order, from the individual's total income, as determined under paragraph (e) of this section. Income that was disregarded in determining eligibility must be considered in this process. (1) Personal needs allowance. A personal needs allowance that is reasonable in amount for clothing and other personal needs of the individual while in the institution. This protected personal needs allowance must be at least— (i) $30 a month for an aged, blind, or disabled individual, including a child applying for Medicaid on the basis of blindness or diability. (ii) $60 a month for an institutionalized couple if both spouses are aged, blind, or disabled and their income is considered available to each other in determining eligibility; and (iii) For other individuals, a reasonable amount set by the agency, based on a reasonable difference in their personal needs from those of the aged, blind, and disabled. (2) Maintenance needs of spouse. For an individual with only a spouse at home, an additional amount for the maintenance needs of the spouse. This amount must be based on a reasonable assessment of need but must not exceed the highest of— (i) The amount of the income standard used to determine eligibility for SSI for an individual living in his own home; (ii) The amount of the highest income standard, in the appropriate category of age, blindness, or disability, used to determine eligibility for an optional State supplement for an individual in his own home, if the agency provides Medicaid to optional State supplement recipients under §435.230; or (iii) The amount of the medically needy income standard for one person established under §435.811. (3) Maintenance needs of family. For an individual with a family at home, an additional amount for the maintenance needs of the family. This amount must— (i) Be based on a reasonable assessment of their financial need; (ii) Be adjusted for the number of family members living in the home; and (iii) Not exceed the highest of the following need standards for a family of the same size: (A) The standard used to determine eligibility under the State's approved AFDC plan. (B) The medically needy income standard established under §435.811. (4) Expenses not subject to third party payment. Amounts for incurred expenses for medical or remedial care that are not subject to payment by a third party, including— (i) Medicare and other health insurance permiums, deductibles, or coinsurance charges; and (ii) Necessary medical or remedial care recognized under State law but not covered under the State's Medicaid plan, subject to reasonable limits the agency may establish on amounts of these expenses. (d) Optional deduction: Allowance for home maintenance. For single individuals and couples, an amount (in addition to the personal needs allowance) for maintenance of the individual's or couple's home if— (1) The amount is deducted for not more than a 6-month period; and (2) A physician has certified that either of the individuals is likely to return to the home within that period. (e) Determination of income—(1) Option. In determining the amount of an individual's income to be used to reduce the agency's payment to the institution, the agency may use total income received or it may project total monthly income for a prospective period not to exceed 6 months. (2) Basis for projection. The agency must base the projection on income received in the preceding period, not to exceed 6 months, and on income expected to be received. (3) Adjustments. At the end of the prospective period specified in paragraph (e)(1) of this section, or when any significant change occurs, the agency must reconcile estimates with income received. (f) Determination of medical expenses—(1) Option. In determining the amount of medical expenses to be deducted from an individual's income, the agency may deduct incurred medical expenses, or it may project medical expenses for a prospective period not to exceed 6 months. (2) Basis for projection. The agency must base the estimate on medical expenses incurred in the preceding period, not to exceed 6 months, and medical expenses expected to be incurred. (3) Adjustments. At the end of the prospective period specified in paragraph (f)(1) of this section, or when any significant change occurs, the agency must reconcile estimates with incurred medical expenses. [45 FR 24886, Apr. 11, 1980, as amended at 46 FR 47988, Sept. 30, 1981; 48 FR 5735, Feb. 8, 1983; 53 FR 3596, Feb. 8, 1988; 53 FR 5344, Feb. 23, 1988; 56 FR 8850, 8854, Mar. 1, 1991; 58 FR 4933, Jan. 19, 1993] (a) To determine eligibility of medically needy individuals, a Medicaid agency must use a single resource standard that meets the requirements of this section. (b) In States that do not use more restrictive criteria than SSI for aged, blind, and disabled individuals, the resource standard must be established at an amount that is no lower than the lowest resource standard used under the cash assistance programs that relate to the State's covered medically needy eligibility group or groups of individuals under §435.301. (c) In States using more restrictive requirements than SSI: (1) For all individuals except aged, blind, and disabled individuals, the resource standard must be set in accordance with paragraph (b) of this section; and (2) For all aged, blind, and disabled individuals or any combination of these groups of individuals, the agency may establish a separate single medically needy resource standard that is more restrictive than the single resource standard set under paragraph (b) of this section. However, the amount of the more restrictive separate standard for aged, blind, or disabled individuals must be no lower than the higher of the lowest categorically needy resource standard currently applied under the State's more restrictive criteria under §435.121 or the medically needy resource standard in effect under the State's Medicaid plan on January 1, 1972. (d) The resource standard established under paragraph (a) of this section may not diminish by an increase in the number of persons in the assistance unit. For example, the resource standard for an assistance unit of three may not be less than that set for a unit of two. [58 FR 4933, Jan. 19, 1993] The State plan must specify the resource standard for the covered medically needy groups. [58 FR 4933, Jan. 19, 1993] To determine eligibility on the basis of resources for medically needy individuals, the agency must: (a) Consider only the individual's resources and those that are considered available to him under the financial responsibility requirements for relatives in §435.602. (b) Deduct the amounts that would be deducted in determining resource eligibility for the medically needy group as provided for in §435.601 or under the criteria of States using more restrictive criteria than SSI as provided for in §435.121. In determining the amount of an individual's resources for Medicaid eligibility, States must count amounts of resources that otherwise would not be counted under the conditional eligibility provisions of the SSI or AFDC programs. (c) Apply the resource standard specified under §435.840. [58 FR 4933, Jan. 19, 1993] Source: 44 FR 17937, Mar. 23, 1979, unless otherwise noted.
This subpart sets forth requirements for processing applications, determining eligibility, and furnishing Medicaid. The Medicaid agency's standards and methods for determining eligibility must be consistent with the objectives of the program and with the rights of individuals under the United States Constitution, the Social Security Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and all other relevant provisions of Federal and State laws. [44 FR 17937, Mar. 23, 1979. Redesignated at 59 FR 48809, Sept. 23, 1994] The agency's policies and procedures must ensure that eligibility is determined in a manner consistent with simplicity of administration and the best interests of the applicant or recipient. [44 FR 17937, Mar. 23, 1979. Redesignated at 59 FR 48809, Sept. 23, 1994] The agency must— (a) Have methods to keep itself currently informed of the adherence of local agencies to the State plan provisions and the agency's procedures for determining eligibility; and (b) Take corrective action to ensure their adherence. [44 FR 17937, Mar. 23, 1979. Redesignated at 59 FR 48809, Sept. 23, 1994] (a) State plan requirements. The Medicaid State plan must specify that the requirements of this section are met. (b) Opportunity to apply. The agency must provide an opportunity for the following groups of low-income pregnant women, infants, and children under age 19 to apply for Medicaid at outstation locations other than AFDC offices: (1) The groups of pregnant women or infants with incomes up to 133 percent of the Federal poverty level as specified under section 1902(a)(10)(A)(i)(IV) of the Act; (2) The group of children age 1 up to age 6 with incomes at 133 percent of the Federal poverty level as specified under section 1902(a)(10)(A)(i)(VI) of the Act; (3) The group of children age 6 up to age 19 born after September 30, 1983, with incomes up to 100 percent of the Federal poverty level as specified under section 1902(a)(10)(A)(i)(VII) of the Act; and (4) The groups of pregnant women or infants, children age 1 up to age 6, and children age 6 up to age 19, who are not eligible as a mandatory group, with incomes up to 185 percent of the Federal poverty level as specified under section 1902(a)(10)(A)(ii)(IX) of the Act. (c) Outstation locations: general requirements. (1) The agency must establish either— (i) Outstation locations at each disproportionate share hospital, as defined in section 1923(a)(1)(A) of the Act, and each Federally-qualified health center, as defined in section 1905(1)(2)(B) of the Act, participating in the Medicaid program and providing services to Medicaid-eligible pregnant women and children; or (ii) Other outstation locations, which include at least some, disproportionate share hospitals and federally-qualified health centers, as specified under an alternative State plan that is submitted to and approved by CMS if the following conditions are met: (A) The State must demonstrate that the alternative plan for outstationing is equally effective as, or more effective than, a plan that would meet the requirements of paragraph (c)(1)(i) of this section in enabling the individuals described in paragraph (b) of this section to apply for and receive Medicaid; and (B) The State must provide assurances that the level of staffing and funding committed by the State under the alternative plan equals or exceeds the level of staffing and funding under a plan that would meet the requirements of establishing the outstation locations at the sites specified in paragraph (c)(1)(i) of this section. (2) The agency must establish outstation locations at Indian health clinics operated by a tribe or tribal organization as these clinics are specifically included in the definition of Federally-qualified health centers under section 1905(l)(2)(B) of the Act and are also included in the definition of rural health clinics under part 491, subpart A of this chapter. (3) The agency may establish additional outstation locations at any other site where potentially eligible pregnant women or children receive services—for example, at school-linked service centers and family support centers. These additional sites may also include sites other than the main outstation location of those Federally-qualified health centers or disproportionate share hospitals providing services to Medicaid-eligible pregnant women and to children and that operate more than one site. (4) The agency may, at its option, enter into reciprocal agreements with neighboring States to ensure that the groups described in paragraph (b) of this section who customarily receive services in a neighboring State have the opportunity to apply at outstation locations specified in paragraphs (c)(l) and (2) of this section. (d) Outstation functions. (1) The agency must provide for the receipt and initial processing of Medicaid applications from the designated eligibility groups at each outstation location. (2) “Initial processing” means taking applications, assisting applicants in completing the application, providing information and referrals, obtaining required documentation to complete processing of the application, assuring that the information contained on the application form is complete, and conducting any necessary interviews. It does not include evaluating the information contained on the application and the supporting documentation nor making a determination of eligibility or ineligibility. (3) The agency may, at its option, allow appropriate State eligibility workers assigned to outstation locations to evaluate the information contained on the application and the supporting documentation and make a determination of eligibility if the workers are authorized to determine eligibility for the agency which determines Medicaid eligibility under §431.10 of this subchapter. (e) Staffing. (1) Except for outstation locations that are infrequently used by the low-income eligibility groups, the State agency must have staff available at each outstation location during the regular office operating hours of the State Medicaid agency to accept applications and to assist applicants with the application process. (2) The agency may station staff at one outstation location or rotate staff among several locations as workload and staffing availability dictate. (3) The agency may use State employees, provider or contractor employees, or volunteers who have been properly trained to staff outstation locations under the following conditions: (i) State outstation intake staff may perform all eligibility processing functions, including the eligibility determination, if the staff is authorized to do so at the regular Medicaid intake office. (ii) Provider or contractor employees and volunteers may perform only initial processing functions as defined in paragraph (d)(2) of this section. (4) Provider and contractor employees and volunteers are subject to the confidentiality of information rules specified in part 431, subpart F, of this subchapter, to the prohibition against reassignment of provider claims specified in §447.10 of this subchapter, and to all other State or Federal laws concerning conflicts of interest. (5) At locations that are infrequently used by the designated low-income eligibility groups, the State agency may use volunteers, provider or contractor employees, or its own eligibility staff, or telephone assistance. (i) The agency must display a notice in a prominent place at the outstation location advising potential applicants of when outstation intake workers will be available. (ii) The notice must include a telephone number that applicants may call for assistance. (iii) The agency must comply with Federal and State laws and regulations governing the provision of adequate notice to persons who are blind or deaf or who are unable to read or understand the English language. [59 FR 48809, Sept. 23, 1994] (a) The agency must furnish the following information in written form, and orally as appropriate, to all applicants and to all other individuals who request it: (1) The eligibility requirements. (2) Available Medicaid services. (3) The rights and responsibilities of applicants and recipients. (b) The agency must publish in quantity and make available bulletins or pamphlets that explain the rules governing eligibility and appeals in simple and understandable terms. [44 FR 17937, Mar. 23, 1979, as amended at 45 FR 24887, Apr. 11, 1980] The agency must afford an individual wishing to do so the opportunity to apply for Medicaid without delay. (a) The agency must require a written application from the applicant, an authorized representative, or, if the applicant is incompetent or incapacitated, someone acting responsibly for the applicant. (b) Subject to the conditions specified in paragraph (c) of this section, the application must be on a form prescribed by the agency and signed under a penalty of perjury. (c) The application form used at outstation locations for low-income pregnant women, infants, and children specified in §435.904 must not be the application form used to apply for AFDC. The application form (including any computerized application form) for these designated eligibility groups may be— (1) A Medicaid-only form prescribed by the agency specifically for the designated eligibility groups; (2) An existing Medicaid-only application; or (3) A multiple-program application that contains clearly identifiable Medicaid-only sections or parts. [59 FR 48810, Sept. 23, 1994] The agency must allow an individual or individuals of the applicant's choice to accompany, assist, and represent the applicant in the application process or a redetermination of eligibility. The agency must not require a separate application for Medicaid from an individual, if— (a) The individual receives AFDC; or (b) The agency has an agreement with the Social Security Administration (SSA) under section 1634 of the Act for determining Medicaid eligibility; and— (1) The individual receives SSI; (2) The individual receives a mandatory State supplement under either a federally-administered or State-administered program; or (3) The individual receives an optional State supplement and the agency provides Medicaid to recipients of optional supplements under §435.230. (a) The agency must require, as a condition of eligibility, that each individual (including children) requesting Medicaid services furnish each of his or her social security numbers (SSNs). (b) The agency must advise the applicant of— (1) [Reserved] (2) The statute or other authority under which the agency is requesting the applicant's SSN; and (3) The uses the agency will make of each SSN, including its use for verifying income, eligibility, and amount of medical assistance payments under §§435.940 through 435.960. (c)–(d) [Reserved] (e) If an applicant cannot recall his SSN or SSNs or has not been issued a SSN the agency must— (1) Assist the applicant in completing an application for an SSN; (2) Obtain evidence required under SSA regulations to establish the age, the citizenship or alien status, and the true identity of the applicant; and (3) Either send the application to SSA or, if there is evidence that the applicant has previously been issued a SSN, request SSA to furnish the number. (f) The agency must not deny or delay services to an otherwise eligible applicant pending issuance or verification of the individual's SSN by SSA. (g) The agency must verify each SSN of each applicant and recipient with SSA, as prescribed by the Commissioner, to insure that each SSN furnished was issued to that individual, and to determine whether any others were issued. (h) Exception. (1) A State may give a Medicaid identification number to an applicant who, because of well established religious objections, refuses to obtain a Social Security Number (SSN). The identification number may be either an SSN obtained by the State on the applicant's behalf or another unique identifier. (2) The term well established religious objections means that the applicant— (i) Is a member of a recognized religious sect or division of the sect; and (ii) Adheres to the tenets or teachings of the sect or division of the sect and for that reason is conscientiously opposed to applying for or using a national identification number. (3) A State may use the Medicaid identification number established by the State to the same extent as an SSN is used for purposes described in paragraph (b)(3) of this section. [44 FR 17937, Mar. 23, 1979, as amended at 51 FR 7211, Feb. 28, 1986; 66 FR 2667, Jan. 11, 2001] (a) The agency must establish time standards for determining eligibility and inform the applicant of what they are. These standards may not exceed— (1) Ninety days for applicants who apply for Medicaid on the basis of disability; and (2) Forty-five days for all other applicants. (b) The time standards must cover the period from the date of application to the date the agency mails notice of its decision to the applicant. (c) The agency must determine eligibility within the standards except in unusual circumstances, for example— (1) When the agency cannot reach a decision because the applicant or an examining physician delays or fails to take a required action, or (2) When there is an administrative or other emergency beyond the agency's control. (d) The agency must document the reasons for delay in the applicant's case record. (e) The agency must not use the time standards— (1) As a waiting period before determining eligibility; or (2) As a reason for denying eligibility (because it has not determined eligibility within the time standards). [44 FR 17937, Mar. 23, 1979, as amended at 45 FR 24887, Apr. 11, 1980; 54 FR 50762, Dec. 11, 1989] The agency must send each applicant a written notice of the agency's decision on his application, and, if eligibility is denied, the reasons for the action, the specific regulation supporting the action, and an explanation of his right to request a hearing. (See subpart E of part 431 of this subchapter for rules on hearings.) [44 FR 17937, Mar. 23, 1979, as amended at 51 FR 7211, Feb. 28, 1986] (a) The agency must include in each applicant's case record facts to support the agency's decision on his application. (b) The agency must dispose of each application by a finding of eligibility or ineligibility, unless— (1) There is an entry in the case record that the applicant voluntarily withdrew the application, and that the agency sent a notice confirming his decision; (2) There is a supporting entry in the case record that the applicant has died; or (3) There is a supporting entry in the case record that the applicant cannot be located. (a) The agency must make eligibility for Medicaid effective no later than the third month before the month of application if the individual— (1) Received Medicaid services, at any time during that period, of a type covered under the plan; and (2) Would have been eligible for Medicaid at the time he received the services if he had applied (or someone had applied for him), regardless of whether the individual is alive when application for Medicaid is made. (b) The agency may make eligiblity for Medicaid effective on the first day of a month if an individual was eligible at any time during that month. (c) The State plan must specify the date on which eligibility will be made effective. (a) The agency must redetermine the eligibility of Medicaid recipients, with respect to circumstances that may change, at least every 12 months, however— (1) The agency may consider blindness as continuing until the review physician under §435.531 determines that a recipient's vision has improved beyond the definition of blindness contained in the plan; and (2) The agency may consider disability as continuing until the review team under §435.541 determines that a recipient's disability no longer meets the definition of disability contained in the plan. (b) Procedures for reporting changes. The agency must have procedures designed to ensure that recipients make timely and accurate reports of any change in circumstances that may affect their eligibility. (c) Agency action on information about changes. (1) The agency must promptly redetermine eligibility when it receives information about changes in a recipient's circumstances that may affect his eligibility. (2) If the agency has information about anticipated changes in a recipient's circumstances, it must redetermine eligibility at the appropriate time based on those changes. (a) The agency must give recipients timely and adequate notice of proposed action to terminate, discontinue, or suspend their eligibility or to reduce or discontinue services they may receive under Medicaid. (b) The notice must meet the requirements of subpart E of part 431 of this subchapter. [44 FR 17937, Mar. 23, 1979, as amended at 45 FR 24887, Apr. 11, 1980; 51 FR 7211, Feb. 28, 1986] (a) In redetermining eligibility, the agency must review case records to determine whether they contain the recipient's SSN or, in the case of families, each family member's SSN. (b) If the case record does not contain the required SSNs, the agency must require the recipient to furnish them and meet other requirements of §435.910. (c) For any recipient whose SSN was established as part of the case record without evidence required under the SSA regulations as to age, citizenship, alien status, or true identity, the agency must obtain verification of these factors in accordance with §435.910. [44 FR 17937, Mar. 23, 1979, as amended at 51 FR 7211, Feb. 28, 1986] The agency must— (a) Furnish Medicaid promptly to recipients without any delay caused by the agency's administrative procedures; (b) Continue to furnish Medicaid regularly to all eligible individuals until they are found to be ineligible; and (c) Make arrangements to assist applicants and recipients to get emergency medical care whenever needed, 24 hours a day and 7 days a week. Source: Sections 435.940 through 935.965 appear at 51 FR 7211, Feb. 28, 1986, unless otherwise noted.
(a) Section 1137 of the Act requires certain Federally-funded, State-administered public assistance programs to establish procedures for obtaining, using and verifying information relevant to determinations as to eligibility and the amount of assistance. Section 1902(a)(4) of the Act allows the Secretary to prescribe methods of administration found necessary for the proper and efficient operation of a State's Medicaid plan. (b) The agency must maintain information, as enumerated in §435.960, to exchange for the purpose of enabling any agency or program referenced in §435.945(b) to verify income, eligibility of, and the amount of assistance for its applicants and recipients. (a) The agency must request and use information timely in accordance with §§435.948, 435.952, and 435.953 of this subpart for verifying Medicaid eligibility and the amount of medical assistance payments. (b) The agency must furnish timely to other agencies in the State and in other States and to Federal programs income, eligibility and medical assistance payment information for verifying eligibility or benefit amounts for the programs listed in §435.948(a)(6) of this subpart. In addition, the agency must furnish income and eligibility information to— (1) The child support enforcement program under part D of title IV of the Act; and (2) SSA for old age, survivors and disability benefits under title II and for SSI benefits under title XVI of the Act. (c) The agency must, upon request, reimburse another agency listed in §435.948(a)(6) of this subpart or paragraph (b) of this section for reasonable costs incurred in furnishing information, including new developmental costs associated with furnishing the information to another agency. (d) The agency must inform all applicants in writing at the time of application that the agency will obtain and use information available to it under section 1137 of the Act to verify income, eligibility and the correct amount of medical assistance payments. The agency must give each recipient the same notice when it redetermines eligibility. The requirements in this paragraph do not apply in the case of applicants or recipients whose eligibility is determined by AFDC or by SSA under section 1634 of the Act. (e) The agency must report as the Secretary prescribes for the purposes of determining compliance with §§431.305, 431.800, 435.910, 435.919 and 435.940 through 435.965 of this chapter and of evaluating the effectiveness of the income and eligibility verification system. (f) The agency must execute written agreements with other agencies before releasing data to or requesting data from, those agencies. The agreements, at a minimum, must specify: (1) The information to be exchanged; (2) The titles of all agency officials with the authority to request income and eligibility information; (3) The methods, including the formats to be used, and the timing for requesting and providing the information (see also paragraph (f)(6) of this section); (4) The safeguards limiting the use and disclosure of the information as required by Federal or State law or regulations; (5) The method, if any, the agency will use to reimburse reasonable costs of furnishing the information; and (6) In the case of an agreement between a SWICA or a UC agency and the Medicaid agency, that the Medicaid agency will obtain information on applicants at least twice monthly; and (7) In the case of an agreement between any Federal agency and the Medicaid agency for data on individuals, provisions relating to— (i) Purpose and legal authority; (ii) Justification and expected results; (iii) Records description (including specific identification of the system of records, the number of records, what data elements will be included in the match, and projected starting and completion dates); (iv) Notice procedures; (v) Verification procedures; (vi) Disposition of matched items; (vii) Security procedures; (viii) Records usage, duplication and redisclosure restrictions; (ix) Records accuracy assessments; and (x) Access by the Comptroller General. (g) SWICA that does not use the quarterly wages reported by employers as required by Section 1137 of the Act of unemployment insurance benefit calculations must maintain wage information that: (1) Contains the SSN, full name, wages earned for the period of the report, and an identifier of the employer; (2) Includes all employers covered by the States' UC law; (3) Accumulates earnings reported by employers for no longer periods than calendar quarters; (4) Is reported to the SWICA within 30 days after the end of the quarter; (5) Is machine readable; and (6) Is accessible to agencies in other States that have executed agreements as required in §435.945(f) of this chapter and to SSA for use in making eligibility or benefit determinations under Title II or XVI of the Act. [51 FR 7211, Feb. 28, 1986, as amended at 52 FR 5977, Feb. 27, 1987; 54 FR 8741, Mar. 2, 1989; 57 FR 46097, Oct. 7, 1992; 59 FR 4254, Jan. 31, 1994] (a) Except as provided in paragraphs (d), (e), and (f) of this section, the agency must request information from the sources specified in this paragraph for verifying Medicaid eligibility and the correct amount of medical assistance payments for each applicant (unless obviously ineligible on the face of his or her application) and recipient. The agency must request— (1) State wage information maintained by the SWICA during the application period and at least on a quarterly basis; (2) Information about net earnings from self-employment, wage and payment of retirement income, maintained by SSA and available under Section 6103(l)(7)(A) of the Internal Revenue Code of 1954, for applicants during the application period and for recipients for whom the information has not previously been requested; (3) Information about benefit and other eligibility related information available from SSA under titles II and XVI of the Social Security Act for applicants during the application period and for recipients for whom the information has not previously been requested; (4) Unearned income information from the Internal Revenue Service available under Section 6103(l)(7)(B) of the Internal Revenue Code of 1954, during the application period and at least yearly; (5) Unemployment compensation information maintained by the agency administering State unemployment compensation laws (under the provisions of section 3304 of the Internal Revenue Code and section 303 of the Act) as follows: (i) For an applicant, during the application period and at least for each of the three subsequent months; (ii) For a recipient that reports a loss of employment, at the time the recipient reports that loss and for at least each of the three subsequent months. (iii) For an applicant or a recipient who is found to be receiving unemployment compensation benefits, at least for each month until the benefits are reported to be exhausted. (6) Any additional income, resource, or eligibility information relevant to determinations concerning eligibility or correct amount of medical assistance payments available from agencies in the State or other States administering the following programs as provided in the agency's State plan: (i) AFDC; (ii) Medicaid; (iii) State-administered supplementary payment programs under Section 1616(a) of the Act; (iv) SWICA; (v) Unemployment compensation; (vi) Food stamps; and (vii) Any State program administered under a plan approved under Title I (assistance to the aged), X (aid to the blind), XIV (aid to the permanently and totally disabled), or XVI (aid to the aged, blind, and disabled in Puerto Rico, Guam, and the Virgin Islands) of the Act. (b) The agency must request information on applicants from the sources listed in paragraph (a)(1) through (a)(5) of this section at the first opportunity provided by these sources following the receipt of the application. If an applicant cannot provide an SSN at application, the agency must request the information at the next available opportunity after receiving the SSN. (c) The agency must request the information required in paragraph (a) of this section by SSN, using each SSN furnished by the individual or received through verification. (d) Exception: In cases where the individual is institutionalized, the agency needs to obtain and use information from SWICA only during the application period and on a yearly basis, and from unemployment compensation agencies only during the application period. An individual is institutionalized for purposes of this section when he or she is required to apply his or her income to the cost of medical care as required by §§435.725, 435.733, and 435.832. (e) Exception: Alternate sources. (1) The Secretary may, upon application from a State agency, permit an agency to request and use income information from a source or sources alternative to those listed in paragraph (a) of this section. The agency must demonstrate to the Secretary that the alternative source(s) is as timely, complete and useful for verifying eligibility and benefit amounts. The Secretary will consult with the Secretary of Agriculture and the Secretary of Labor before determining whether an agency may use an alternate source. (2) The agency must continue to meet the requirements of this section unless the Secretary has approved the request. (f) Exception: If the agency administering the AFDC program, or SSA under section 1634 of the Act, determines the eligibility of an applicant or recipient, the requirements of this section do not apply to that applicant or recipient. (a) Except as provided under §435.953, the agency must review and compare against the case file all information received under §§435.940 through 435.960 to determine whether it affects the applicant's or recipient's eligibility or amount of medical assistance payment. The agency also must independently verify the information if required by §435.955 or if determined appropriate by agency experience. (b) For applicants, if the information is received during the application period, it must be used, to the extent possible, making eligibility determinations. If it is received after the eligibility determination, it must be used as specified for recipients in paragraphs (c) and (d) of this section. (c) Except as specified in §435.953 of this subpart and paragraph (d) of this section, for recipients, the agency must, within 45 days of receipt of an item of information, request verification (if appropriate), determine whether the information affects eligibility or the amount of medical assistance payment, and either initiate a notice of case action to advise the recipient of any adverse action the agency intends to take or make an entry in the casefile that no further action is necessary. (d) Subject to paragraph (e) of this section, if the agency does not receive requested third party verification within the 45-day period after receipt of information, the agency may determine whether the information affects eligibility or correct amount of medical assistance payment after the 45-day period. However, the agency must make any delayed determinations permitted under this paragraph— (1) Promptly, as required by §435.916, if the verification is received before the next redetermination; or (2) In conjunction with the next redetermination if no verification is received before that redetermination. (e) The number of determinations delayed beyond 45 days from receipt of an item of information (as permitted by paragraph (d) of this section) must not exceed twenty percent of the number of items of information for which verification was requested. (f) The agency must use appropriate procedures to monitor the timeliness requirements of this section. (g) The requirements of this section do not relieve the agency of its responsibility for determinations of erroneous payments or the agency's liability for those erroneous payments, as defined in subpart P of part 431 of this chapter. [51 FR 7211, Feb. 28, 1986, as amended at 53 FR 6648, March 2, 1988; 54 FR 8741, Mar. 2, 1989; 59 FR 4255, Jan. 31, 1994] (a) With respect to information received on recipients under §§435.940 through 435.960, the agency may either review and compare against the case file all items of information received or it may identify (target) separately for each data source the information items that are most likely to be most productive in identifying and preventing ineligibility and incorrect payments. (b) An agency that wishes to exclude categories of information items must submit for the Secretary's approval a follow-up plan describing the categories that it proposes to exclude. For each category, the agency must provide a reasonable justification that follow-up is not cost-effective; a formal cost/benefit analysis is not required. (c) If an agency receives an item of unemployment compensation information from the Internal Revenue Service or earnings information from SSA that duplicates an item of information previously received from another source and followed up, the agency may exclude that information item without justification. (d) An agency may submit a follow-up plan or alter its plan at any time by notifying the Secretary and submitting the necessary justification. The Secretary approves or disapproves categories of items to be excluded under the plan within 60 days of its submission. The categories approved by the Secretary constitute an approved agency follow-up plan for IEVS. [54 FR 8742, Mar. 2, 1989] (a) Unless waived under paragraph (d) of this section, based on information received from a computerized data match in which information on an individual is provided to the agency by a Federal agency, the agency may not terminate, deny, suspend, or reduce medical assistance to that individual until it has taken appropriate steps to verify the information independently. The agency must independently verify information relating to— (1) The amount of the income and resource that generated the income involved; (2) Whether the applicant or recipient actually has (or had) access to the resource or income (or both) for his or her own use; (3) The period or periods when the individual actually has (or had) access to the resource or income or both. (b) The agency must verify the information by either (1) Requesting the entity from which the information originally came to verify the fact and amount of income or resource; or (2) Sending the applicant or recipient a letter informing that individual of the information received and asking him or her to respond within a specified period. The letter must clearly explain the information the agency has and its possible relevance to the individual's past or future eligibility, and be as neutral in tone as possible. (c)(1) If the original source of the income or resource or the applicant or recipient verifies the information, and the agency intends to reduce, suspend, terminate or deny medical assistance based on the information, the agency must send the applicant or recipient a notice of the action to be taken and include information on the right to appeal and opportunity for a hearing under §§431.200 through 431.246 of this chapter (see also §435.912 and §435.919). (2) If the applicant or recipient fails to respond after reasonable attempts to contact him or her, the agency must proceed to deny, terminate, reduce or suspend medical assistance based on the applicant's or recipient's failure to cooperate. (3) If the applicant or recipient disputes the information, the agency must obtain evidence (from the source of the data, applicant, recipient, or otherwise) to substantiate any negative case action it may take. (d) The independent verification requirement concerning a category of data received from a Federal benefit agency may be waived if the Federal agency's Data Integrity Board approves the waiver. The Federal benefit agency involved in the data exchange will develop the request by petitioning its Data Integrity Board for a waiver of independent verification by a Medicaid State agency. The State agency must furnish the Federal agency with any information it needs to seek the Data Integrity Board's approval of the waiver. (e) In accordance with the Federal agency's procedures, the agency must provide data on the costs and benefits of the matching program to the Federal agency from which it receives information on individuals. (f) In accordance with the Federal agency's procedures, the agency must certify to the Federal agency that it will not take adverse action against an individual until the information has been independently verified and until 10 days (or sooner if permitted by §431.213 or §431.214) after the individual has been notified of the findings and given an opportunity to contest. (g) In accordance with the Federal agency's procedures for renewals of matching programs, the agency must certify to the Federal agency that the terms of the agreement have been followed. [59 FR 4255, Jan. 31, 1994] (a) The agency must maintain for all applicants and recipients within an agency file the SSN, surname and other data elements in a format that at a minimum allows the agency to furnish and to obtain eligibility and income information from the agencies or programs referenced in §435.945(b) and §435.948(a). (b) The format to be used will be prescribed by— (1) CMS when the agency furnishes information to, or requests information from, any Federal or State agency, except SSA and the Internal Revenue Service as specified in paragraphs (b) (2) and (3), respectively; (2) The Commissioner of Social Security when the agency requests information from SSA; and (3) The Commissioner of Internal Revenue when the agency requests information from the Internal Revenue Service. [52 FR 5977, Feb. 27, 1987] (a) If the agency submits, by May 29, 1986, a plan describing a good faith effort to come into compliance with the requirements of section 1137 of the Act and of §§435.910 and 435.940 through 435.960 of this subpart, the Secretary may, after consultation with the Secretary of Agriculture and the Secretary of Labor, grant a delay in the effective date of §§435.910 and 435.940 through 435.960, but not beyond September 30, 1986. (b) The Secretary may not grant a delay of the effective date of section 1137(c) of the Act, which is implemented by §435.955 (a) and (c). (The provisions of these statutory and regulation sections require the agency to follow certain procedures before taking any adverse actions based on information from the Internal Revenue Service concerning unearned income.) This subpart specifies when, and the extent to which, FFP is available in expenditures for determining eligibility and for Medicaid services to individuals determined eligible under this part, and prescribes limitations and conditions on FFP for those expenditures. (a) FFP is available in the necessary administrative costs the State incurs in— (1) Determining and redetermining Medicaid eligibility and in providing Medicaid to eligible individuals; and (2) Determining presumptive eligibility for children and providing services to presumptively eligible children. (b) Administrative costs include any costs incident to an eye examination or medical examination to determine whether an individual is blind or disabled. [43 FR 45204, Sept. 29, 1978, as amended at 66 FR 2667, Jan. 11, 2001] (a) Except for the limitations and conditions specified in §§435.1007, 35.1008, 435.1009, and 438.814 of this chapter, FFP is available in expenditures for Medicaid services for all recipients whose coverage is required or allowed under this part. (b) FFP is available in expenditures for services provided to recipients who were eligible for Medicaid in the month in which the medical care or services were provided except that, for recipients who establish eligibility for Medicaid by deducting incurred medical expenses from income, FFP is not available for expenses that are the recipient's liability. (See §§435.914 and 436.901 of this subchapter for regulations on retroactive eligibility for Medicaid.) (c) FFP is available in expenditures for services covered under the plan that are furnished— (1) To children who are determined by a qualified entity to be presumptively eligible; (2) During a period of presumptive eligibility; (3) By a provider that is eligible for payment under the plan; and (4) Regardless of whether the children are determined eligible for Medicaid following the period of presumptive eligibility. [43 FR 45204, Sept. 29, 1978, as amended at 44 FR 17939, Mar. 23, 1979; 66 FR 2667, Jan. 11, 2001; 67 FR 41095, June 14, 2002; 71 FR 39225, July 12, 2006] (a) If the Social Security Administration (SSA) notifies an agency that a recipient has been determined ineligible for SSI, FFP is available in Medicaid expenditures for services to the recipient as follows: (1) If the agency receives the SSA notice by the 10th day of the month, FFP is available under this section only through the end of the month unless the recipient requests a hearing under subpart E, part 431 of this subchapter. (2) If the agency receives the SSA notice after the 10th day of the month, FFP is available only through the end of the following month, unless the recipient requests a hearing under subpart E, part 431 of this subchapter. (3) If a recipient requests a hearing, FFP is available as specified in subpart E, part 431 of this subchapter. (b) The agency must take prompt action to determine eligibility after receiving the SSA notice. (c) When a change in Federal law affects the eligibility of substantial numbers of Medicaid recipients, the Secretary may waive the otherwise applicable FFP requirements and redetermination time limits of this section, in order to provide a reasonable time to complete such redeterminations. The Secretary will designate an additional amount of time beyond that allowed under paragraphs (a) and (b) of this section, within which FFP will be available, to perform large numbers of redeterminations arising from a change in Federal law. [43 FR 45204, Sept. 29, 1978, as amended at 44 FR 17939, Mar. 23, 1979; 62 FR 1685, Jan. 13, 1997] (a) FFP is available, as specified in paragraph (b) of this section, in expenditures for services provided to recipients who are overcoming certain eligibility conditions, including blindness, disability, continued absence or incapacity of a parent, or unemployment of a parent. (b) FFP is available for a period not to exceed— (1) The period during which a recipient of AFDC, SSI or an optional State supplement continues to receive cash payments while these conditions are being overcome; or (2) For recipients eligible for Medicaid only and recipients of AFDC, SSI or an optional State supplement who do not continue to receive cash payments, the second month following the month in which the recipient's Medicaid eligibility would have been terminated. [43 FR 45204, Sept. 29, 1978, as amended at 45 FR 24887, Apr. 11, 1980] For recipients in institutions whose Medicaid eligibility is based on a special income standard established under §435.236, FFP is available in expenditures for services provided to those individuals only if their income before deductions, as determined by SSI budget methodology, does not exceed 300 percent of the SSI benefit amount payable under section 1611(b)(1) of the Act to an individual in his own home who has no income or resources. [58 FR 4933, Jan. 19, 1993] FFP is available in expenditures for services provided to individuals receiving optional State supplements but not receiving SSI, if their income before deductions, as determined by SSI budget methodology, does not exceed 300 percent of the SSI benefit amount payable under section 1611(b)(1) of the Act to an individual who has no income and resources. [45 FR 24887, Apr. 11, 1980] (a) FFP is available in expenditures for covered services provided to categorically needy recipients, medically needy recipients, and qualified Medicare beneficiaries, subject to the restrictions contained in subpart K of this part and as provided in paragraphs (b) and (e) of this section. However, the restrictions listed in paragraphs (b) and (e) of this section do not apply to expenditures for medical assistance made on behalf of qualified Medicare beneficiaries under section 1905(p) of the Act; individuals receiving Medicaid as categorically needy under section 1902(a)(10)(A)(i) (I), (II), (III), (IV), (V), (VI), or (VII) and section 1902(a)(10)(A)(ii) (I), (IX), or (X) and section 1905(u) of the Act; individuals who are eligible to receive benefits (or would be eligible for those benefits if they were not in a medical institution); and any individuals deemed to be members of the groups identified in this sentence. (b) Except as provided in paragraphs (c) and (d) of this section, FFP is not available in State expenditures for individuals (including the medically needy) whose annual income after deductions specified in §435.831(a) and (c) exceeds the following amounts, rounded to the next higher multiple of $100. (c) In the case of a family consisting only of two individuals, both of whom are adults and at least one of whom is aged, blind, or disabled, the State of California may use the amount of the AFDC payment most frequently made to a family of one adult and two children for purposes of computing the 133 (d) For purposes of paragraph (b)(1) of this section, a State that as of June 1, 1989, has in its State plan (as defined in section 2373(c)(5) of Public Law 98–369 as amended by section 9 of Public Law 100–93) an amount for individuals that was reasonably related to 133 (e) FFP is not available in expenditures for services provided to categorically needy and medically needy recipients subject to the FFP limits if their annual income, after the cash assistance income deductions and any income disregards in the State plan authorized under section 1902(r)(2) of the Act are applied, exceeds the 133 (f) A State may use the less restrictive income methodologies included under its State plan as authorized under §435.601 in determining whether a family's income exceeds the limitation described in paragraph (b) of this section. [58 FR 4933, Jan. 19, 1993, as amended at 66 FR 2321, 2667, Jan. 11, 2001] FFP will not be available to a State with respect to expenditures for medical assistance furnished to individuals unless the State has obtained satisfactory documentary evidence of citizenship or national status, as described in §435.407 that complies with the requirements of section 1903(x) of the Act. This requirement does not apply with respect to individuals declaring themselves to be citizens or nationals who are eligible for medical assistance and who are either entitled to benefits or enrolled in any parts of the Medicare program under title XVIII of the Social Security Act, or on the basis of receiving supplemental security income benefits under title XVI of the Act. [71 FR 39225, July 12, 2006] (a) FFP is not available in expenditures for services provided to— (1) Individuals who are inmates of public institutions as defined in §435.1010; or (2) Individuals under age 65 who are patients in an institution for mental diseases unless they are under age 22 and are receiving inpatient psychiatric services under §440.160 of this subchapter. (b) The exclusion of FFP described in paragraph (a) of this section does not apply during that part of the month in which the individual is not an inmate of a public institution or a patient in an institution for tuberculosis or mental diseases. (c) An individual on conditional release or convalescent leave from an institution for mental diseases is not considered to be a patient in that institution. However, such an individual who is under age 22 and has been receiving inpatient psychiatric services under §440.160 of this subchapter is considered to be a patient in the institution until he is unconditionally released or, if earlier, the date he reaches age 22. [43 FR 45204, Sept. 29, 1978, as amended at 50 FR 13199, Apr. 3, 1985; 50 FR 38811, Sept. 25, 1985. Redesignated and amended at 71 FR 39225, July 12, 2006] For purposes of FFP, the following definitions apply: Active treatment in intermediate care facilities for the mentally retarded means treatment that meets the requirements specified in the standard concerning active treatment for intermediate care facilities for persons with mental retardation under §483.440(a) of this subchapter. Child-care institution means a nonprofit private child-care institution, or a public child-care institution that accommodates no more than twenty-five children, which is licensed by the State in which it is situated, or has been approved by the agency of the State responsible for licensing or approval of institutions of this type, as meeting the standards established for licensing. The term does not include detention facilities, forestry camps, training schools or any other facility operated primarily for the detention of children who are determined to be delinquent. In an institution refers to an individual who is admitted to live there and receive treatment or services provided there that are appropriate to his requirements. Inmate of a public institution means a person who is living in a public institution. An individual is not considered an inmate if— (a) He is in a public educational or vocational training institution for purposes of securing education or vocational training; or (b) He is in a public institution for a temporary period pending other arrangements appropriate to his needs. Inpatient means a patient who has been admitted to a medical institution as an inpatient on recommendation of a physician or dentist and who— (1) Receives room, board and professional services in the institution for a 24 hour period or longer, or (2) Is expected by the institution to receive room, board and professional services in the institution for a 24 hour period or longer even though it later develops that the patient dies, is discharged or is transferred to another facility and does not actually stay in the institution for 24 hours. Institution means an establishment that furnishes (in single or multiple facilities) food, shelter, and some treatment or services to four or more persons unrelated to the proprietor. Institution for mental diseases means a hospital, nursing facility, or other institution of more than 16 beds that is primarily engaged in providing diagnosis, treatment or care of persons with mental diseases, including medical attention, nursing care and related services. Whether an institution is an institution for mental diseases is determined by its overall character as that of a facility established and maintained primarily for the care and treatment of individuals with mental diseases, whether or not it is licensed as such. An institution for the mentally retarded is not an institution for mental diseases. Institution for the mentally retarded or persons with related conditions means an institution (or distinct part of an institution) that— (a) Is primarily for the diagnosis, treatment, or rehabilitation of the mentally retarded or persons with related conditions; and (b) Provides, in a protected residential setting, ongoing evaluation, planning, 24-hour supervision, coordination, and integration of health or rehabilitative services to help each individual function at his greatest ability. Institution for tuberculosis means an institution that is primarily engaged in providing diagnosis, treatment, or care of persons with tuberculosis, including medical attention, nursing care, and related services. Whether an institution is an institution for tuberculosis is determined by its overall character as that of a facility established and maintained primarily for the care and treatment of tuberculosis, whether or not it is licensed as such. Medical institution means an institution that— (a) Is organized to provide medical care, including nursing and convalescent care; (b) Has the necessary professional personnel, equipment, and facilities to manage the medical, nursing, and other health needs of patients on a continuing basis in accordance with accepted standards; (c) Is authorized under State law to provide medical care; and (d) Is staffed by professional personnel who are responsible to the institution for professional medical and nursing services. The services must include adequate and continual medical care and supervision by a physician; registered nurse or licensed practical nurse supervision and services and nurses' aid services, sufficient to meet nursing care needs; and a physician's guidance on the professional aspects of operating the institution. Outpatient means a patient of an organized medical facility or distinct part of that facility who is expected by the facility to receive, and who does receive, professional services for less than a 24-hour period regardless of the hour of admission, whether or not a bed is used or whether or not the patient remains in the facility past midnight. Patient means an individual who is receiving needed professional services that are directed by a licensed practitioner of the healing arts toward maintenance, improvement, or protection of health, or lessening of illness, disability, or pain. Persons with related conditions means individuals who have a severe, chronic disability that meets all of the following conditions: (a) It is attributable to— (1) Cerebral palsy or epilepsy; or (2) Any other condition, other than mental illness, found to be closely related to mental retardation because this condition results in impairment of general intellectual functioning or adaptive behavior similar to that of mentally retarded persons, and requires treatment or services similar to those required for these persons. (b) It is manifested before the person reaches age 22. (c) It is likely to continue indefinitely. (d) It results in substantial functional limitations in three or more of the following areas of major life activity: (1) Self-care. (2) Understanding and use of language. (3) Learning. (4) Mobility. (5) Self-direction. (6) Capacity for independent living. Public institution means an institution that is the responsibility of a governmental unit or over which a governmental unit exercises administrative control. The term “public institution” does not include— (a) A medical institution as defined in this section; (b) An intermediate care facility as defined in §§440.140 and 440.150 of this chapter; (c) A publicly operated community residence that serves no more than 16 residents, as defined in this section; or (d) A child-care institution as defined in this section with respect to— (1) Children for whom foster care maintenance payments are made under title IV-E of the Act; and (2) Children receiving AFDC—foster care under title IV-A of the Act. Publicly operated community residence that serves no more than 16 residents is defined in 20 CFR 416.231(b)(6)(i). A summary of that definition is repeated here for the information of readers. (a) In general, a publicly operated community residence means— (1) It is publicly operated as defined in 20 CFR 416.231(b)(2). (2) It is designed or has been changed to serve no more than 16 residents and it is serving no more than 16; and (3) It provides some services beyond food and shelter such as social services, help with personal living activities, or training in socialization and life skills. Occasional medical or remedial care may also be provided as defined in 45 CFR 228.1; and (b) A publicly operated community residence does not include the following facilities, even though they accommodate 16 or fewer residents: (1) Residential facilities located on the grounds of, or immediately adjacent to, any large institution or multiple purpose complex. (2) Educational or vocational training institutions that primarily provide an approved, accredited, or recognized program to individuals residing there. (3) Correctional or holding facilities for individuals who are prisoners, have been arrested or detained pending disposition of charges, or are held under court order as material witnesses or juveniles. (4) Hospitals, nursing facilities, and intermediate care facilities for the mentally retarded. [43 FR 45204, Sept. 29, 1978, as amended at 47 FR 28655, July 1, 1982; 47 FR 31532, July 20, 1982; 51 FR 19181, May 28, 1986; 52 FR 47934, Dec. 17, 1987; 53 FR 657, Jan. 11, 1988; 53 FR 20495, June 3, 1988; 56 FR 8854, Mar. 1, 1991; 56 FR 23022, May 20, 1991; 59 FR 56233, Nov. 10, 1994. Redesignated at 71 FR 39225, July 12, 2006] (a) Except as specified in paragraph (b) of this section, FFP is not available in Medicaid expenditures in any quarter in which the State does not have in effect an agreement with the Secretary under section 212 of Pub. L. 93–66 (July 9, 1973) for minimum mandatory State supplements of the basic SSI benefit. (b) This section does not apply to any State that meets the conditions of section 212(f) of Pub. L. 93–66. [43 FR 45204, Sept. 29, 1978. Redesignated at 71 FR 39225, July 12, 2006] (a) This section applies to States that make optional State supplement payments under section 1616(a) of the Act and mandatory supplement payments under section 212(a) of Pub. L. 93–66. (b) FFP in Medicaid expenditures is not available during any period in which the State does not have in effect an agreement with the Secretary under section 1618 of the Act to maintain its supplementary payments. [43 FR 45204, Sept. 29, 1978, as amended at 55 FR 48609, Nov. 21, 1990. Redesignated at 71 FR 39225, July 12, 2006] Source: 66 FR 2667, Jan. 11, 2001, unless otherwise noted.
(a) Statutory basis. Section 1920A of the Act allows States to provide Medicaid services to children under age 19 during a period of presumptive eligibility, prior to a formal determination of Medicaid eligibility. (b) Scope. This subpart prescribes the requirements for providing medical assistance to special groups who are not eligible for Medicaid as categorically or medically needy. Application form means at a minimum the form used to apply for Medicaid under the poverty-level-related eligibility groups described in section 1902(l) of the Act or a joint form for children to apply for the State Children's Health Insurance Program and Medicaid. Period of presumptive eligibility means a period that begins on the date on which a qualified entity determines that a child is presumptively eligible and ends with the earlier of— (1) In the case of a child on whose behalf a Medicaid application has been filed, the day on which a decision is made on that application; or (2) In the case of a child on whose behalf a Medicaid application has not been filed, the last day of the month following the month in which the determination of presumptive eligibility was made. Presumptive income standard means the highest income eligibility standard established under the plan that is most likely to be used to establish the regular Medicaid eligibility of a child of the age involved. Qualified entity means an entity that is determined by the State to be capable of making determinations of presumptive eligibility for children, and that— (1) Furnishes health care items and services covered under the approved plan and is eligible to receive payments under the approved plan; (2) Is authorized to determine eligibility of a child to participate in a Head Start program under the Head Start Act; (3) Is authorized to determine eligibility of a child to receive child care services for which financial assistance is provided under the Child Care and Development Block Grant Act of 1990; (4) Is authorized to determine eligibility of an infant or child to receive assistance under the special nutrition program for women, infants, and children (WIC) under section 17 of the Child Nutrition Act of 1966; (5) Is authorized to determine eligibility of a child for medical assistance under the Medicaid State plan, or eligibility of a child for child health assistance under the State Children's Health Insurance Program; (6) Is an elementary or secondary school, as defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801); (7) Is an elementary or secondary school operated or supported by the Bureau of Indian Affairs; (8) Is a State or Tribal child support enforcement agency; (9) Is an organization that— (i) Provides emergency food and shelter under a grant under the Stewart B. McKinney Homeless Assistance Act; (ii) Is a State or Tribal office or entity involved in enrollment in the program under title XIX, Part A of title IV, or title XXI; or (iii) Determines eligibility for any assistance or benefits provided under any program of public or assisted housing that receives Federal funds, including the program under section 8 or any other section of the United States Housing Act of 1937 (42 U.S.C. 1437) or under the Native American Housing Assistance and Self Determination Act of 1996 (25 U.S.C. 4101 et seq.); and (10) Any other entity the State so deems, as approved by the Secretary. Services means all services covered under the plan including EPSDT (see part 440 of this chapter). [66 FR 2667, Jan. 11, 2001, as amended at 66 FR 33822, June 25, 2001] (a) The agency may provide services to children under age 19 during one or more periods of presumptive eligibility following a determination by a qualified entity that the child's estimated gross family income or, at the State's option, the child's estimated family income after applying simple disregards, does not exceed the applicable income standard. (b) If the agency elects to provide services to children during a period of presumptive eligibility, the agency must— (1) Provide qualified entities with application forms for Medicaid and information on how to assist parents, caretakers and other persons in completing and filing such forms; (2) Establish procedures to ensure that qualified entities— (i) Notify the parent or caretaker of the child at the time a determination regarding presumptive eligibility is made, in writing and orally if appropriate, of such determination; (ii) Provide the parent or caretaker of the child with a regular Medicaid application form; (iii) Within five working days after the date that the determination is made, notify the agency that a child is presumptively eligible; (iv) For children determined to be presumptively eligible, notify the child's parent or caretaker at the time the determination is made, in writing and orally if appropriate, that— (A) If a Medicaid application on behalf of the child is not filed by the last day of the following month, the child's presumptive eligibility will end on that last day; and (B) If a Medicaid application on behalf of the child is filed by the last day of the following month, the child's presumptive eligibility will end on the day that a decision is made on the Medicaid application; and (v) For children determined not to be presumptively eligible, notify the child's parent or caretaker at the time the determination is made, in writing and orally if appropriate— (A) Of the reason for the determination; and (B) That he or she may file an application for Medicaid on the child's behalf with the Medicaid agency; (3) Provide all services covered under the plan, including EPSDT; and (4) Allow determinations of presumptive eligibility to be made by qualified entities on a Statewide basis. (c) The agency must adopt reasonable standards regarding the number of periods of presumptive eligibility that will be authorized for a child in a given time frame.
Title 42: Public Health
PART 435—ELIGIBILITY IN THE STATES, DISTRICT OF COLUMBIA, THE NORTHERN MARIANA ISLANDS, AND AMERICAN SAMOA
Section Contents
§ 435.2 Purpose and applicability.
§ 435.3 Basis.
§ 435.4 Definitions and use of terms.
§ 435.10 State plan requirements.
§ 435.100 Scope.
Mandatory Coverage of Families and Children
§ 435.110 Individuals receiving aid to families with dependent children.
§ 435.112 Families terminated from AFDC because of increased earnings or hours of employment.
§ 435.113 Individuals who are ineligible for AFDC because of requirements that do not apply under title XIX of the Act.
§ 435.114 Individuals who would be eligible for AFDC except for increased OASDI income under Pub. L. 92–336 (July 1, 1972).
§ 435.115 Individuals deemed to be receiving AFDC.
Mandatory Coverage of Pregnant Women, Children Under 8, and Newborn Children
§ 435.116 Qualified pregnant women and children who are not qualified family members.
§ 435.117 Newborn children.
Mandatory Coverage of Qualified Family Members
§ 435.119 Qualified family members.
Mandatory Coverage of the Aged, Blind, and Disabled
§ 435.120 Individuals receiving SSI.
§ 435.121 Individuals in States using more restrictive requirements for Medicaid than the SSI requirements.
§ 435.122 Individuals who are ineligible for SSI or optional State supplements because of requirements that do not apply under title XIX of the Act.
§ 435.130 Individuals receiving mandatory State supplements.
§ 435.131 Individuals eligible as essential spouses in December 1973.
§ 435.132 Institutionalized individuals who were eligible in December 1973.
§ 435.133 Blind and disabled individuals eligible in December 1973.
§ 435.134 Individuals who would be eligible except for the increase in OASDI benefits under Pub. L. 92–336 (July 1, 1972).
§ 435.135 Individuals who become ineligible for cash assistance as a result of OASDI cost-of-living increases received after April 1977.
§ 435.136 State agency implementation requirements for one-time notice and annual review system.
§ 435.137 Disabled widows and widowers who would be eligible for SSI except for the increase in disability benefits resulting from elimination of the reduction factor under Pub. L. 98–21.
§ 435.138 Disabled widows and widowers aged 60 through 64 who would be eligible for SSI except for early receipt of social security benefits.
Mandatory Coverage of Certain Aliens
§ 435.139 Coverage for certain aliens.
Mandatory Coverage of Adoption Assistance and Foster Care Children
§ 435.145 Children for whom adoption assistance or foster care maintenance payments are made.
Mandatory Coverage of Special Groups
§ 435.170 Pregnant women eligible for extended coverage.
§ 435.200 Scope.
§ 435.201 Individuals included in optional groups.
Options for Coverage of Families and Children and the Aged, Blind, and Disabled
§ 435.210 Individuals who meet the income and resource requirements of the cash assistance programs.
§ 435.211 Individuals who would be eligible for cash assistance if they were not in medical institutions.
§ 435.212 Individuals who would be ineligible if they were not enrolled in an MCO or PCCM.
§ 435.217 Individuals receiving home and community-based services.
Options for Coverage of Families and Children
§ 435.220 Individuals who would meet the income and resource requirements under AFDC if child care costs were paid from earnings.
§ 435.221 [Reserved]
§ 435.222 Individuals under age 21 who meet the income and resource requirements of AFDC.
§ 435.223 Individuals who would be eligible for AFDC if coverage under the State's AFDC plan were as broad as allowed under title IV-A.
§ 435.225 Individuals under age 19 who would be eligible for Medicaid if they were in a medical institution.
§ 435.227 Individuals under age 21 who are under State adoption assistance agreements.
§ 435.229 Optional targeted low-income children.
Options for Coverage of the Aged, Blind, and Disabled
§ 435.230 Aged, blind, and disabled individuals in States that use more restrictive requirements for Medicaid than SSI requirements: Optional coverage.
§ 435.232 Individuals receiving only optional State supplements.
§ 435.234 Individuals receiving only optional State supplements in States using more restrictive eligibility requirements than SSI and certain States using SSI criteria.
§ 435.236 Individuals in institutions who are eligible under a special income level.
§ 435.300 Scope.
§ 435.301 General rules.
§ 435.308 Medically needy coverage of individuals under age 21.
§ 435.310 Medically needy coverage of specified relatives.
§ 435.320 Medically needy coverage of the aged in States that cover individuals receiving SSI.
§ 435.322 Medically needy coverage of the blind in States that cover individuals receiving SSI.
§ 435.324 Medically needy coverage of the disabled in States that cover individuals receiving SSI.
§ 435.326 Individuals who would be ineligible if they were not enrolled in an MCO or PCCM.
§ 435.330 Medically needy coverage of the aged, blind, and disabled in States using more restrictive eligibility requirements for Medicaid than those used under SSI.
§ 435.340 Protected medically needy coverage for blind and disabled individuals eligible in December 1973.
§ 435.350 Coverage for certain aliens.
§ 435.400 Scope.
§ 435.401 General rules.
§ 435.402 [Reserved]
§ 435.403 State residence.
§ 435.404 Applicant's choice of category.
§ 435.406 Citizenship and alienage.
§ 435.407 Types of acceptable documentary evidence of citizenship.
§ 435.500 Scope.
Dependency
§ 435.510 Determination of dependency.
Age
§ 435.520 Age requirements for the aged.
§ 435.522 Determination of age.
Blindness
§ 435.530 Definition of blindness.
§ 435.531 Determinations of blindness.
Disability
§ 435.540 Definition of disability.
§ 435.541 Determinations of disability.
§ 435.600 Scope.
§ 435.601 Application of financial eligibility methodologies.
§ 435.602 Financial responsibility of relatives and other individuals.
§ 435.604 [Reserved]
§ 435.606 [Reserved]
§ 435.608 Applications for other benefits.
§ 435.610 Assignment of rights to benefits.
§ 435.622 Individuals in institutions who are eligible under a special income level.
§ 435.631 General requirements for determining income eligibility in States using more restrictive requirements for Medicaid than SSI.
§ 435.640 Protected Medicaid eligibility for individuals eligible in December 1973.
§ 435.700 Scope.
§ 435.725 Post-eligibility treatment of income of institutionalized individuals in SSI States: Application of patient income to the cost of care.
§ 435.726 Post-eligibility treatment of income of individuals receiving home and community-based services furnished under a waiver: Application of patient income to the cost of care.
§ 435.733 Post-eligibility treatment of income of institutionalized individuals in States using more restrictive requirements than SSI: Application of patient income to the cost of care.
§ 435.735 Post-eligibility treatment of income and resources of individuals receiving home and community-based services furnished under a waiver: Application of patient income to the cost of care.
§ 435.800 Scope.
Medically Needy Income Standard
§ 435.811 Medically needy income standard: General requirements.
§ 435.814 Medically needy income standard: State plan requirements.
Medically Needy Income Eligibility
§ 435.831 Income eligibility.
§ 435.832 Post-eligibility treatment of income of institutionalized individuals: Application of patient income to the cost of care.
Medically Needy Resource Standard
§ 435.840 Medically needy resource standard: General requirements.
§ 435.843 Medically needy resource standard: State plan requirements.
Determining Eligibility on the Basis of Resources
§ 435.845 Medically needy resource eligibility.
§§ 435.850-435.852 [Reserved]
§ 435.900 Scope.
General Methods of Administration
§ 435.901 Consistency with objectives and statutes.
§ 435.902 Simplicity of administration.
§ 435.903 Adherence of local agencies to State plan requirements.
§ 435.904 Establishment of outstation locations to process applications for certain low-income eligibility groups.
Applications
§ 435.905 Availability of program information.
§ 435.906 Opportunity to apply.
§ 435.907 Written application.
§ 435.908 Assistance with application.
§ 435.909 Automatic entitlement to Medicaid following a determination of eligibility under other programs.
§ 435.910 Use of social security number.
Determination of Medicaid Eligibility
§ 435.911 Timely determination of eligibility.
§ 435.912 Notice of agency's decision concerning eligibility.
§ 435.913 Case documentation.
§ 435.914 Effective date.
Redeterminations of Medicaid Eligibility
§ 435.916 Periodic redeterminations of Medicaid eligibility.
§ 435.919 Timely and adequate notice concerning adverse actions.
§ 435.920 Verification of SSNs.
Furnishing Medicaid
§ 435.930 Furnishing Medicaid.
Income and Eligibility Verification Requirements
§ 435.940 Basis and scope.
§ 435.945 General requirements.
§ 435.948 Requesting information.
§ 435.952 Use of information.
§ 435.953 Identifying items of information to use.
§ 435.955 Additional requirements regarding information released by a Federal agency.
§ 435.960 Standardized formats for furnishing and obtaining information to verifying income and eligibility.
§ 435.965 Delay of effective date.
§ 435.1000 Scope.
FFP in Expenditures for Determining Eligibility and Providing Services
§ 435.1001 FFP for administration.
§ 435.1002 FFP for services.
§ 435.1003 FFP for redeterminations.
§ 435.1004 Recipients overcoming certain conditions of eligibility.
Limitations on FFP
§ 435.1005 Recipients in institutions eligible under a special income standard.
§ 435.1006 Recipients of optional State supplements only.
§ 435.1007 Categorically needy, medically needy, and qualified Medicare beneficiaries.
§ 435.1008 FFP in expenditures for medical assistance for individuals who have declared United States citizenship or nationality under section 1137(d) of the Act and with respect to whom the State has not documented citizenship and identity.
§ 435.1009 Institutionalized individuals.
§ 435.1010 Definitions relating to institutional status.
Requirements for State Supplements
§ 435.1011 Requirement for mandatory State supplements.
§ 435.1012 Requirement for maintenance of optional State supplement expenditures.
§ 435.1100 Basis and scope.
Presumptive Eligibility for Children
§ 435.1101 Definitions related to presumptive eligibility for children.
§ 435.1102 General rules.
Subpart A—General Provisions and Definitions
top
§ 435.2 Purpose and applicability.
top
§ 435.3 Basis.
top
§ 435.4 Definitions and use of terms.
top
§ 435.10 State plan requirements.
top
Subpart B—Mandatory Coverage of the Categorically Needy
top
§ 435.100 Scope.
top
Mandatory Coverage of Families and Children
top
§ 435.110 Individuals receiving aid to families with dependent children.
top
§ 435.112 Families terminated from AFDC because of increased earnings or hours of employment.
top
§ 435.113 Individuals who are ineligible for AFDC because of requirements that do not apply under title XIX of the Act.
top
§ 435.114 Individuals who would be eligible for AFDC except for increased OASDI income under Pub. L. 92–336 (July 1, 1972).
top
§ 435.115 Individuals deemed to be receiving AFDC.
top
Mandatory Coverage of Pregnant Women, Children Under 8, and Newborn Children
top
§ 435.116 Qualified pregnant women and children who are not qualified family members.
top
§ 435.117 Newborn children.
top
Mandatory Coverage of Qualified Family Members
top
§ 435.119 Qualified family members.
top
Mandatory Coverage of the Aged, Blind, and Disabled
top
§ 435.120 Individuals receiving SSI.
top
§ 435.121 Individuals in States using more restrictive requirements for Medicaid than the SSI requirements.
top
§ 435.122 Individuals who are ineligible for SSI or optional State supplements because of requirements that do not apply under title XIX of the Act.
top
§ 435.130 Individuals receiving mandatory State supplements.
top
§ 435.131 Individuals eligible as essential spouses in December 1973.
top
§ 435.132 Institutionalized individuals who were eligible in December 1973.
top
§ 435.133 Blind and disabled individuals eligible in December 1973.
top
§ 435.134 Individuals who would be eligible except for the increase in OASDI benefits under Pub. L. 92–336 (July 1, 1972).
top
§ 435.135 Individuals who become ineligible for cash assistance as a result of OASDI cost-of-living increases received after April 1977.
top
§ 435.136 State agency implementation requirements for one-time notice and annual review system.
top
§ 435.137 Disabled widows and widowers who would be eligible for SSI except for the increase in disability benefits resulting from elimination of the reduction factor under Pub. L. 98–21.
top
§ 435.138 Disabled widows and widowers aged 60 through 64 who would be eligible for SSI except for early receipt of social security benefits.
top
Mandatory Coverage of Certain Aliens
top
§ 435.139 Coverage for certain aliens.
top
Mandatory Coverage of Adoption Assistance and Foster Care Children
top
§ 435.145 Children for whom adoption assistance or foster care maintenance payments are made.
top
Mandatory Coverage of Special Groups
top
§ 435.170 Pregnant women eligible for extended coverage.
top
Subpart C—Options for Coverage as Categorically Needy
top
§ 435.200 Scope.
top
§ 435.201 Individuals included in optional groups.
top
Options for Coverage of Families and Children and the Aged, Blind, and Disabled
top
§ 435.210 Individuals who meet the income and resource requirements of the cash assistance programs.
top
§ 435.211 Individuals who would be eligible for cash assistance if they were not in medical institutions.
top
§ 435.212 Individuals who would be ineligible if they were not enrolled in an MCO or PCCM.
top
§ 435.217 Individuals receiving home and community-based services.
top
Options for Coverage of Families and Children
top
§ 435.220 Individuals who would meet the income and resource requirements under AFDC if child care costs were paid from earnings.
top
§ 435.221 [Reserved]
top
§ 435.222 Individuals under age 21 who meet the income and resource requirements of AFDC.
top
§ 435.223 Individuals who would be eligible for AFDC if coverage under the State's AFDC plan were as broad as allowed under title IV-A.
top
§ 435.225 Individuals under age 19 who would be eligible for Medicaid if they were in a medical institution.
top
§ 435.227 Individuals under age 21 who are under State adoption assistance agreements.
top
§ 435.229 Optional targeted low-income children.
top
Options for Coverage of the Aged, Blind, and Disabled
top
§ 435.230 Aged, blind, and disabled individuals in States that use more restrictive requirements for Medicaid than SSI requirements: Optional coverage.
top
§ 435.232 Individuals receiving only optional State supplements.
top
§ 435.234 Individuals receiving only optional State supplements in States using more restrictive eligibility requirements than SSI and certain States using SSI criteria.
top
§ 435.236 Individuals in institutions who are eligible under a special income level.
top
Subpart D—Optional Coverage of the Medically Needy
top
§ 435.300 Scope.
top
§ 435.301 General rules.
top
§ 435.308 Medically needy coverage of individuals under age 21.
top
§ 435.310 Medically needy coverage of specified relatives.
top
§ 435.320 Medically needy coverage of the aged in States that cover individuals receiving SSI.
top
§ 435.322 Medically needy coverage of the blind in States that cover individuals receiving SSI.
top
§ 435.324 Medically needy coverage of the disabled in States that cover individuals receiving SSI.
top
§ 435.326 Individuals who would be ineligible if they were not enrolled in an MCO or PCCM.
top
§ 435.330 Medically needy coverage of the aged, blind, and disabled in States using more restrictive eligibility requirements for Medicaid than those used under SSI.
top
§ 435.340 Protected medically needy coverage for blind and disabled individuals eligible in December 1973.
top
§ 435.350 Coverage for certain aliens.
top
Subpart E—General Eligibility Requirements
top
§ 435.400 Scope.
top
§ 435.401 General rules.
top
§ 435.402 [Reserved]
top
§ 435.403 State residence.
top
§ 435.404 Applicant's choice of category.
top
§ 435.406 Citizenship and alienage.
top
§ 435.407 Types of acceptable documentary evidence of citizenship.
top
Subpart F—Categorical Requirements for Eligibility
top
§ 435.500 Scope.
top
Dependency
top
§ 435.510 Determination of dependency.
top
Age
top
§ 435.520 Age requirements for the aged.
top
§ 435.522 Determination of age.
top
Blindness
top
§ 435.530 Definition of blindness.
top
§ 435.531 Determinations of blindness.
top
Disability
top
§ 435.540 Definition of disability.
top
§ 435.541 Determinations of disability.
top
Subpart G—General Financial Eligibility Requirements and Options
top
§ 435.600 Scope.
top
§ 435.601 Application of financial eligibility methodologies.
top
§ 435.602 Financial responsibility of relatives and other individuals.
top
§ 435.604 [Reserved]
top
§ 435.606 [Reserved]
top
§ 435.608 Applications for other benefits.
top
§ 435.610 Assignment of rights to benefits.
top
§ 435.622 Individuals in institutions who are eligible under a special income level.
top
§ 435.631 General requirements for determining income eligibility in States using more restrictive requirements for Medicaid than SSI.
top
§ 435.640 Protected Medicaid eligibility for individuals eligible in December 1973.
top
Subpart H—Specific Post-Eligibility Financial Requirements for the Categorically Needy
top
§ 435.700 Scope.
top
§ 435.725 Post-eligibility treatment of income of institutionalized individuals in SSI States: Application of patient income to the cost of care.
top
§ 435.726 Post-eligibility treatment of income of individuals receiving home and community-based services furnished under a waiver: Application of patient income to the cost of care.
top
§ 435.733 Post-eligibility treatment of income of institutionalized individuals in States using more restrictive requirements than SSI: Application of patient income to the cost of care.
top
§ 435.735 Post-eligibility treatment of income and resources of individuals receiving home and community-based services furnished under a waiver: Application of patient income to the cost of care.
top
Subpart I—Specific Eligibility and Post-Eligibility Financial Requirements for the Medically Needy
top
§ 435.800 Scope.
top
Medically Needy Income Standard
top
§ 435.811 Medically needy income standard: General requirements.
top
§ 435.814 Medically needy income standard: State plan requirements.
top
Medically Needy Income Eligibility
top
§ 435.831 Income eligibility.
top
§ 435.832 Post-eligibility treatment of income of institutionalized individuals: Application of patient income to the cost of care.
top
Medically Needy Resource Standard
top
§ 435.840 Medically needy resource standard: General requirements.
top
§ 435.843 Medically needy resource standard: State plan requirements.
top
Determining Eligibility on the Basis of Resources
top
§ 435.845 Medically needy resource eligibility.
top
§§ 435.850-435.852 [Reserved]
top
Subpart J—Eligibility in the States and District of Columbia
top
§ 435.900 Scope.
top
General Methods of Administration
top
§ 435.901 Consistency with objectives and statutes.
top
§ 435.902 Simplicity of administration.
top
§ 435.903 Adherence of local agencies to State plan requirements.
top
§ 435.904 Establishment of outstation locations to process applications for certain low-income eligibility groups.
top
Applications
top
§ 435.905 Availability of program information.
top
§ 435.906 Opportunity to apply.
top
§ 435.907 Written application.
top
§ 435.908 Assistance with application.
top
§ 435.909 Automatic entitlement to Medicaid following a determination of eligibility under other programs.
top
§ 435.910 Use of social security number.
top
Determination of Medicaid Eligibility
top
§ 435.911 Timely determination of eligibility.
top
§ 435.912 Notice of agency's decision concerning eligibility.
top
§ 435.913 Case documentation.
top
§ 435.914 Effective date.
top
Redeterminations of Medicaid Eligibility
top
§ 435.916 Periodic redeterminations of Medicaid eligibility.
top
§ 435.919 Timely and adequate notice concerning adverse actions.
top
§ 435.920 Verification of SSNs.
top
Furnishing Medicaid
top
§ 435.930 Furnishing Medicaid.
top
Income and Eligibility Verification Requirements
top
§ 435.940 Basis and scope.
top
§ 435.945 General requirements.
top
§ 435.948 Requesting information.
top
§ 435.952 Use of information.
top
§ 435.953 Identifying items of information to use.
top
§ 435.955 Additional requirements regarding information released by a Federal agency.
top
§ 435.960 Standardized formats for furnishing and obtaining information to verifying income and eligibility.
top
§ 435.965 Delay of effective date.
top
Subpart K—Federal Financial Participation
top
§ 435.1000 Scope.
top
FFP in Expenditures for Determining Eligibility and Providing Services
top
§ 435.1001 FFP for administration.
top
§ 435.1002 FFP for services.
top
§ 435.1003 FFP for redeterminations.
top
§ 435.1004 Recipients overcoming certain conditions of eligibility.
top
Limitations on FFP
top
§ 435.1005 Recipients in institutions eligible under a special income standard.
top
§ 435.1006 Recipients of optional State supplements only.
top
§ 435.1007 Categorically needy, medically needy, and qualified Medicare beneficiaries.
top
§ 435.1008 FFP in expenditures for medical assistance for individuals who have declared United States citizenship or nationality under section 1137(d) of the Act and with respect to whom the State has not documented citizenship and identity.
top
§ 435.1009 Institutionalized individuals.
top
§ 435.1010 Definitions relating to institutional status.
top
Requirements for State Supplements
top
§ 435.1011 Requirement for mandatory State supplements.
top
§ 435.1012 Requirement for maintenance of optional State supplement expenditures.
top
Subpart L—Option for Coverage of Special Groups
top
§ 435.1100 Basis and scope.
top
Presumptive Eligibility for Children
top
§ 435.1101 Definitions related to presumptive eligibility for children.
top
§ 435.1102 General rules.
top
