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Frequently Asked Questions

Frequently Asked Questions are used to provide additional information and/or statutory guidance not found in State Medicaid Director Letters, State Health Official Letters, or CMCS Informational Bulletins. The different sets of FAQs as originally released can be accessed below.

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What federal matching rate applies for individuals found presumptively eligible by hospitals? Is the newly eligible federal medical assistance percentage (FMAP) available for populations found presumptively eligible for the new adult group?

While individuals may be determined "presumptively eligible" for coverage under the new adult group by a qualified hospital or qualified entity, the newly eligible FMAP is only available once the full eligibility determination has been completed. In these circumstances, the newly eligible FMAP is only authorized with respect to individuals determined eligible for the new adult group by the state agency or other public entity authorized to make final Medicaid eligibility determinations. The regular FMAP applies until such time as the state (or other authorized entity) determines an individual to be eligible for the new adult group and the state confirms that they also meet the definition of a "newly eligible individual."

As noted in our August 2013 FAQs, in appropriate circumstances, a state may retroactively adjust claiming for services provided during a presumptive eligibility period. Specifically, newly eligible status is available based on the effective date of eligibility for the new adult group, which may be as early as the third month prior to the month that the individual applied for Medicaid in accordance with 42 CFR section 435.914 (re-designated at section 435.915 under the March 2012 final eligibility rule), provided that the individual would have been eligible for Medicaid had he or she applied as of the earlier date. To the extent to which the presumptive eligibility period is encompassed within such retroactive eligibility period and the state determines that the individual meets the criteria for newly eligible status, the state may retroactively adjust claiming for services provided during a presumptive eligibility period. The state is not required to make such a retroactive adjustment if the state determines that an adjustment would be administratively burdensome.

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FAQ ID:91706

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Can a state make a qualified hospital liable when a PE determination results in a denial of Medicaid eligibility?

There is no recoupment for Medicaid services provided during a PE period resulting from erroneous determinations made by qualified entities. Payment for services covered under the state plan (as well as federal financial participation) is guaranteed during a PE period; without such a guarantee, providers could not rely on the PE determination. As noted, states have various ways to ensure that hospitals are making appropriate PE determinations and must fulfill their oversight responsibilities.

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FAQ ID:91711

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Must the hospital complete the PE application and determination process before services can be covered by Medicaid?

Yes, an individual has to be found presumptively eligible (the PE application is submitted and a determination made) for services to be covered during the hospital PE period.

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FAQ ID:91716

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What is hospital presumptive eligibility and how is it different from presumptive eligibility (PE) for pregnant women and children?

For years, states have had the option to use presumptive eligibility (PE) to connect pregnant women and children to Medicaid. Hospitals were often key to implementing PE for those populations. Starting in January 2014, the Affordable Care Act gives qualified hospitals a unique new opportunity to connect other populations to Medicaid coverage. Under this new PE authority, hospitals will be able to immediately enroll patients who are likely eligible under a state's Medicaid eligibility guidelines for a temporary period of time. An individual provides information about his or her income and household size, and (at state option) information regarding citizenship, immigration status, and residency, and if they appear to be eligible for Medicaid based on this information, a hospital shall determine that individual to be "presumptively eligible" for Medicaid. The individual is temporarily enrolled, and health care providers (not just hospitals) will receive payment for services provided during this interim period pending a final adjudication of Medicaid eligibility by the state Medicaid agency. Like other forms of PE, hospital PE aims to:

  • Assure timely access to care while a final eligibility determination is made; and
  • Promote enrollment (beyond the interim PE period) in ongoing Medicaid coverage by offering additional channels through which individuals can apply.

The choice to make PE determinations rests with each individual hospital (not with the state) and is not dependent on whether the hospital (or the state) operates PE for other populations.

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FAQ ID:91721

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Does my state have to implement hospital presumptive eligibility (PE)?

Yes, under the law, all states must implement hospital PE to include all qualifying hospitals willing to abide by state policies and procedures. States have discretion in how they operate hospital PE to ensure that appropriate PE determinations are being made. In order to be considered a qualified entity, under the regulation at 42 CFR 435.1110(b)(1), the hospital must agree to make presumptive eligibility determinations consistent with state policies and procedures, and the state can and should exercise oversight to ensure proper administration of hospital PE. To fulfill this responsibility, states must provide qualified entities with information on relevant state policies and procedures and information on how to fulfill their responsibilities in making presumptive eligibility determinations.

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FAQ ID:91726

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Given that hospital presumptive eligibility (PE) was effective January 1, 2014, what is the deadline for states to submit their Medicaid state plan amendment to implement this provision?

The latest date by which the SPA must be filed in order to meet the required effective date of January 1, 2014 is March 31, 2014 (the end of the quarter in which the policy will take effect). However, the hospital PE provision took effect on January 1 and every state is expected to implement this provision in compliance with the law.

CMS has provided a series of guidance and tools designed to assist states in implementing hospital presumptive eligibility, including proposed and final regulations, several all-state SOTA calls and webinars, and a model set of training materials for states to use in educating hospitals about PE. In addition, CMS convened an "affinity group" of a dozen states designed to share questions and best practices in detail as states were designing their hospital PE policies. These discussions were informed by several internal and external subject matter experts in the field of PE who offered suggestions about developing training materials, simplifying applications, and considering standards for states to use in measuring hospital performance and ensuring accountability. CMS is available to provide ongoing technical assistance and to review preliminary SPA proposals to help ensure that states are implementing hospital PE properly. States that wish to discuss mitigation approaches for implementing hospital PE should reach out through the SOTA process.

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FAQ ID:91731

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How does section 2001(a)(5)(B) of the Affordable Care Act impact states currently covering children 6-18 up to 133 percent of the FPL under a separate CHIP?

Section 2001(a)(5)(B) of the Affordable Care Act (implemented through regulations for the Medicaid program at section 435.118) increased the minimum income limit applicable to Medicaid eligibility for the mandatory group for poverty-level related children aged 6-18 from 100 to 133 percent of the FPL under section 1902(a)(10)(A)(i)(VII) of the Act. Therefore, if a state is currently covering uninsured children up to 133 percent of the FPL under a separate CHIP, these children must be transitioned to the Medicaid state plan under this children's group effective January 1, 2014. CMS is available to work with states individually on their transition plans for this population.

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FAQ ID:92606

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Are these children who are being transferred from CHIP to the Medicaid state plan considered optional targeted low-income children under section 1902(a)(10)(A)(ii)(XIV) of the Act?

No. For the purposes of eligibility, these children are considered a mandatory Medicaid group for poverty-level related children under section 1902(a)(10)(A)(i)(VII) of the Act. As described below, states will continue to receive the CHIP matching rate for this population.

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FAQ ID:92611

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Will new applicants/children ages 6-18 with incomes between 100 and 133 percent of the FPL with other health insurance qualify for coverage under the Medicaid state plan?

Yes. Under the Medicaid mandatory group for poverty-level related children under section 1902(a)(10)(A)(i)(VII) of the Act, insured children must be covered in addition to uninsured children (please also see applicable match rate questions below). This is different from the rules governing a separate CHIP program, which preclude coverage for insured children.

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FAQ ID:92616

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Does 2001(a)(5)(B) of the Affordable Care Act impact children eligible in a separate or Medicaid expansion that are currently covered at income levels above 133 percent of the FPL?

No. States continue to have the option to cover children above 133 percent of the FPL either under a Medicaid expansion or separate program. States must maintain CHIP "eligibility standards, methodologies, and procedures" for children that are no more restrictive than those in effect on March 23, 2010 as specified under the "maintenance of effort" provision at 2105(d)(3) of the Act. A parallel requirement in Medicaid can be found at sections 1902(a)(74) and 1902(gg) of the Act. These provisions are effective through September 30, 2019.

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FAQ ID:92621

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